Topic Review Activity

The table below is comparing level of education achieved to the rate of unemployment and the median weekly earnings in 2008. Based on the information provided, the unemployment rate decreases the most when moving between which two consecutive educational levels?

a) "Less than high school" and "High School Graduate"

Based on the spreadsheet below, what is the net cash flow?

a) $290

Four friends want to take a vacation together, so each one gets a part-time job. Each person has 8 weeks to save $720 for the vacation. Analyze the four individual plans below and decide which of the four people will reach his or her goal of saving $720 for vacation. Friend A: Works 13 hours per week at $6.95 per hour. Friend B: Works 15 hours per week at $5.85 per hour. Friend C: Works 18 hours per week at $5.25 per hour. Friend D: Works 11 hours per week at $7.80 per hour.

a) A and C

The following table shows the assets and liabilities of the Smith family in 2005 and 2009.Based on the table, which of the following is true?

a) From 2005 to 2009, both assets and liabilities decreased.

Julian is trying to decide on a future career. He has narrowed down his choices to orthodontist, sound engineering technician, police officer, or editor. The following table represents the total employment numbers for 2006 and projected employment numbers for 2016. Which profession is projected to have the greatest percent of increase in the number of jobs from 2006 to 2016?

a) Orthodontist

Aaron is a high school graduate working as a retail clerk. He earns a median salary for a high school graduate. Aaron is thinking about going to college to get an associate's degree. If he completes his degree in 2 years and college costs total $30,000, how long will it take Aaron to recover his investment, assuming that he earns the median salary and continues to work full time while he is attending school?

a) about 2.5 years

If there is a positive correlation between salary and education, then based on the table shown, which of the following careers requires the most education?

a) accountant

Tamara earns $8 an hour at her job working 25 hours per week. If 22% of her paycheck goes to taxes, what is Tamara's monthly cash inflow? (Assume this is her only source of income and that there are 4 pays per month.)

b) $624

Kinsey has a plan to save $60 a month for 16 months so that she can purchase a new television. After 11 months Kinsey has saved $600. If the most that Kinsey can possibly save is $80 per month, which of the following statements is true?

b) Kinsey must save $72 per month to achieve her goal.

Which of the following would you list under cash inflows in a financial plan?

b) You received a bonus at work.

Drake wants to save $750 so that he can take a class on computer analysis for cars. The class is being held on various dates over the next several months. Drake is planning to take the class 6 weeks from now, so he plans to save $125 each week. Unfortunately, Drake had to take out a little money from his savings in the 3rd week. After 4 weeks, Drake has $470. He knows that he must adjust his plan in order to meet his goal. Drake came up with the following options: Option A: Stay with saving the original amount each week but take the class a week later than originally planned. Option B: Increase the amount of money he saves each week by $15 from his original plan. Which of the following is a true statement?

c) Both options A and B will allow him to meet his goal.

Based on trends displayed in the graphs above, which answer choice represents a likely situation for 2010?

c) There will be roughly 6 million employees in 2010, and those employees will have average hourly earnings of $22.75.

Barry gets hurt at work and must go on disabililty for 4 months. On disability, the pay that Barry receives is 60% of his normal net pay. Barry should be fine if he has a plan for _____.

c) managing his liquidity

Planning for the possibility that the plumbing in your house needs repair is part of a plan for _____.

c) managing liquidity

Mike and Kate plan to save money for their wedding over a 20 month period. They will need to save $8,000 to help pay for the wedding. They set aside the same amount each month. After a year they saved $4,000. Mike and Kate know they must adjust their plan in order to meet their goal, so they came up with the following options: Option A: Stay with saving the same amount they've been saving each month but postpone the wedding 2 months. Option B: Increase the amount of money they save each month by $80 from what they've been saving. Which of the following is a true statement?

d) Neither option A nor option B will allow them to meet their goal.