Financial Math

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Which of the following is considered a purchase tax? a. income tax b. Social Security c. property tax d. excise tax

A combination washer/dryer costs $1,179. New parts for this washer/dryer cost $211, labor to repair it costs $553, and shipping it to and from a repair center costs $152. A full warranty, which covers all aspects of repairing the washer/dryer, costs 30% of the price of the washer/dryer. A limited warranty, which only covers labor costs, only costs 14% of the price of the washer/dryer. Assuming that the washer/dryer needs repairs which include parts, labor, and shipping, which warranty is the better deal, and by how much, rounded to the nearest dollar? a. The limited warranty will end up costing the consumer $189 less. b. The limited warranty will end up costing the consumer $363 less. c. The full warranty will end up costing the consumer $553 less. d. The full warranty will end up costing the consumer $174 less.

Andrea is shopping for items for her pet sitting business because the store is having a sale where everything in the store is 5% off. Andrea buys a cat carrier for $39.99 and a cat tower for $19.99. She has a coupon for an additional 15% off on the cat tower. Before tax, Andrea estimates that her total, after discounts, will be about $54. Determine if Andrea has estimated correctly. a. Yes. Andrea has estimated correctly. b. No. Andrea has taken 20% of the total, which is not correct.. c. No. Andrea has taken successive discounts on the total, but the coupon is just on the cat tower. d. No. Andrea has only taken the 5% discount on the cat tower and not on

Budgeting for home maintenance early can save money in the long run. Why save early compared to later, especially if the home is new? a. Home maintenance is unpredictable, but it is important to do it promptly, or it will result in home damage that requires repair. b. Homebuilders are often untrustworthy and do low quality work, requiring home owners to fix or finish a lot of things on their own. c. Homeowners often run into problems soon after purchasing a brand new house. d. Homeowners always have a lot of money after moving into a house they purchased, so they save it for the future.

Lucy will open a checking account and 3 savings accounts for different purposes (emergency fund, gift fund, and education fund). Which of the following items should not be among her main considerations in selecting these accounts? a. The account recommended for somebody with different needs. b. The amount of interest to be paid on deposits. c. Any advantages of having all the accounts at the same bank. d. Fees for having multiple savings accounts.

Sal and two of his friends rent an apartment together. Their total cost to move in included first month's rent, last month's rent and a security deposit of $1,200. If Sal paid a total of $1,000 to move in, how much is his share of the rent each month? a. $300 b. $450 c. $600 d. $900

Sharon wants to open a checking account from which to pay bills. She wants online services, and a debit card, which both banks provide for free. Based upon past experience, she expects to accidentally overdraft the account 1 time per year, due to unexpected charges and miscommunications. She expects no 2nd copies of statements, and to use network ATMs 4 times per month with either bank. She has $3300 in an emergency savings account at First State Bank, and thinks that the balance will be enough to cover overdrafts in the future if automatic transfers are made when needed. 2007-04-01-00-00_files/i0100000.jpg Based on the tables of fees, above, if Sharon chooses First State Bank, will it save her money over choosing Common Bank? a. No, Common Bank will save Sharon more money. b. Yes, First State Bank will save Sharon money. c. No, First State Bank and Common Bank would have the same costs for Sharon. d. No, costs cannot be estimated in advance, so this information cannot be used.

Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with an annual income of $86,250. a. $575.00 b. $2,012.50 c. $2,415.00 d. $2,587.50

Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6.25%. Vanessa's monthly payments are $1,595.85. How much was Vanessa's down payment? a. $9,314.45 b. $16,781.25 c. $40,275.00 d. $53,040.00

Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in costs of $2,380 and monthly payment of $845. Buy: Move-in costs of $5,260 and monthly payment of $785. Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Choose the best evaluation of Viola's decision. a. Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 4 year period as long as she doesn't have major repairs to make. c. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 4 year period. d. There is not enough information given to determine which option is best.

What may be a concern if you have an adjustable rate mortgage (ARM)? a. After the initial fixed rate period, your rate may increase. b. Your payment will constantly change during your initial fixed rate period. c. After the initial fixed rate period, your rate may decrease. d. A portion of your rate pays the commission of your mortgage broker.

Which of the following is a benefit Social Security does not offer? a. automobile insurance b. disability insurance c. retirement insurance d. survivor insurance

Which of the following is not a promotional tactic used by a seller? a. bait and switch b. clearance c. closeout d. liquidation

Which of these statements is most accurate regarding mortgage payments through the life of your loan? a. At the beginning of your loan, your payments are covering mostly interest. At the end of your loan, your payments are covering mostly principal. b. The amount for your mortgage payments will decline over the life of your loan. c. The amount of interest paid per mortgage payment will remain the same over the life of your loan. d. The amount of principal paid per mortgage payment will decrease over the life of your loan.

Which term is defined as a fee charged for the use of money? a. interest b. down payment c. principal d. default

Brendon had total job benefits of $39,500 last year. He was required to wear a shirt with the company logo on it for work that he was responsible for buying. Brendon purchased 12 shirts for work during the year at a cost of $23.95 each. He was also required to attend a training at a cost to him of $135. What was Brendon's total employment compensation last year? a. $39,077.60 b. $39,212.60 c. $39,341.05 d. $39,922.40

Damian wants to save $7200 to buy a car within the next 2 years. How could a monthly budget be created to help Damian save enough money to buy a car in a timely manner with minimal effect on his other essential expenses? Monthly Budget Budget A Budget B Budget C Budget D Income $1000 $1,000 $1,000 $1,000 Expenses- Rent Utilities Food Bus Pass Car Savings School Savings $300 $75 $150 $25 $350 $100 $300 $75 $150 $25 $250 $200 $300 $75 $75 $0 $300 $250 $300 $75 $150 $25 $100 $350 a. Budget A b. Budget B c. Budget C d. Budget D

Davi is mapping out essential and non-essential expenses and is perplexed about where to categorize gift-giving. Davi considers splitting gifts into 4 different spending categories (Essential—Fixed, Essential—Variable, Non-Essential, and Other—Predictable). Then, he decides that 4 categories would be too complicated. He thinks that it will be simpler to budget all gifts under one category only and decides on the category "Other (Predictable)". In addition, he will open a special savings account only for gift expenses, both for known people and occasions, and for general gifts that he may decide to give in the future. Which statement below is not a reasonable reason for Davi's decision to establish a separate account for gift expenses. a. Budgeting categories are exact, and gifts can fit into only one of them. b. He will be able to give both planned and unplanned gifts that he has budgeted for. c. He will still be able to cover other important living expenses. d. Simplifying will help assure that he can follow his budget plans.

Emma is ready to open a new checking account and is trying to decide between three banks using the chart below: Bank R Bank S Bank T No monthly fees if balance stays above $300, otherwise $7 per month No monthly fees if check card is used more than 6 times per month, otherwise $10 monthly fee $5 monthly fee No minimum balance $25 minimum balance No minimum balance Online banking services Online banking services No online banking options Non-Bank R ATM fee - $2.00 per transaction Non-Bank S ATM fee - $1.50 per transaction Non-Bank T ATM fee - $2.00 per transaction Emma usually has about $1000 in her account at any given time during the month. She usually visits the ATM twice a week and is interested in banking online options. Bank R has 10 ATMs within a 5 mile radius of Emma's home. Bank S has 1 ATM 10 miles from Emma's work. Which bank should she choose? a. Bank R b. Bank S c. Bank T d. Bank R and S

Examine the following budget: Monthly Budget Budgeted Amount Actual Amount Income Wages $1000 $850 Expenses Car - gas, insurance Food & Personal Items Cell Phone College Savings Recreation Clothes $300 $200 $75 $200 $75 $85 $300 $220 $75 $200 $80 $60 Net Income $65 What is the actual net income for the month? What, if any, changes could have been made to the actual amounts this month to keep the actual net income at a positive value? a. The actual net income for the month is -$85. Less money could have been spent on food, recreation and clothes. b. The actual net income for the month is $85. No changes necessary. c. The actual net income for the month is -$85. No changes necessary. d. The actual net income for the month is $85. Less money could have been spent on food, recreation and clothes.

Henrietta has $120 to buy a new bicycle. She finds the bike that she wants to buy on sale for 20% off the regular price of $150. If there is 6% sales tax, which of the following best describes the amount of money Henrietta has with regards to buying the bike. a. Henrietta has enough before the tax, but not enough after the tax. b. Henrietta has enough money even after the tax. c. Henrietta does not have enough money even before the tax. d. There is not enough information given.

Kito makes on online purchase of a guitar case for $39.99, a tuner for $24.99 and picks for $26.99. Taxes are 6% of the total purchase price. Shipping charges are based on the following table: Amount of Purchase Standard Shipping Express Shipping up to $50 $5.10 $7.00 $50 up to $100 $6.35 $8.20 $100 up to $200 $7.80 $11.60 $200 and over $10.50 $16.45 Kito selects express shipping and the company bills his credit card $105.69 for the total of the online purchase. Determine if Kito has been billed correctly for his purchase. a. Kito has been billed correctly. b. Kito has not been charged enough for his purchase. c. Kito has been over charged by $1.85 for his purchase. d. Kito has been over charged by $3.40 for his purchase.

Leroy's total employee compensation was $50,150 last year. His total job expenses for traveling and for professional developement for the year were $3,500. Which of the following represents his total job benefits? a. $53,650 b. $50,150 c. $46,650 d. $47,650

Mrs. Jones has received her bank statement and is ready to reconcile it with her checkbook register. Fill out the reconciliation worksheet for Mrs. Jones using the data from her bank statement and checkbook register. Assume all transactions on previous pages have already cleared. Great Bank of Home and Work KeepItSimple™ Statement for February 2010 Beginning balance (01/05/2010): $2340.00 Ending balance (02/04/2010): $1864.16 Total of credits: $0.00 Total of debits: $475.84 Date cleared - 01/05/2010 Description - Debit card purchase from XYZ Supermarket and Deli Limited Amount - 145.44 Date cleared - 02/04/2010 Description - Check 1015, Bis Insurance of North America Amount - $320.40 Date cleared - 02/04/2010 Description - Monthly service fee Amount - $10.00 Reconciliation Worksheet Amount 1. Enter the statement closing balance. $ 2. Enter the sum of any outstanding deposits or credits. $ 3. Add lines 1 and 2. $ 4. Enter the sum of any outstanding checks or debits. $ 5. Subtract line 4 from line 3. $ 6. Enter your checkbook balance. $ Note: Lines 5 and 6 should be equal at the end of the reconciliation. Mrs. Jones's checkbook register: Date Num Payee Payment Clr Deposit Balance 1/1/2010 Balance forward 2,340.00 2,340.00 1/5/2010 Debit XYZ Supermarket 145.44 2194.56 2/1/2010 1014 Rent 600.00 1594.56 2/1/2010 1015 Bis Insurance Company 320.40 1274.16 Consider what must be done, if anything, in order to finish the reconciliation process. a. Line 6 is $10.00 higher than line 5; look back at the statement to find the discrepancy. b. Any transaction that appears on the register must still be added to the bank statement. c. Add lines 5 and 6 together. d. The rent of $600 is in your checkbook but not on your bank statement.

Predict how much money can be saved without having a negative actual net income. Monthly Budget Budgeted Amount Actual Amount Income Wages $1025 $675 Expenses Rent Utilities Food Cell Phone Savings $300 $100 $175 $75 $300 $300 $100 $200 $75 $____ Net Income $75 $____ a. It is not possible to save any money this month without having a negative actual net income. b. $350 can be saved resulting in an actual net income of $0. c. $200 can be saved resulting in an actual net income of $75. d. Because there is a $75 budgeted net income, that $75 can be put towards savings.

The gross pay, benefits and job expenses for two different employees are shown below. Employee A: gross pay $57,200, employee benefits $5,300, job expenses $800 Employee B: gross pay $56,900, employee benefits $6,200, job expenses $1,400 Which of the following is a true statement? a. The total employment compensations for the two employees are the same. b. The total employment compensation for employee A is less than that of employee B. c. The total employment compensation for employee A is greater than that of employee B. d. The total employment compensations for the two employees can not be compared..

When calculating the successive discounts of 15% and 10% on a $100 item, _____. a. take 10% of $85 b. take 10% of $90 c. take 15% of $85 d. take 25% of $100

Which of the following statements best gives the reasons that a data usage bill for a smart phone is an essential (variable) expense? a. It is an obligation to pay, but the spender has some control over its amount. b. It cannot be eliminated in a later budget, in order to save money. c. It is expected to be the same amount every month. d. Bills for services rendered have a higher priority than any other type of expense.

Why is it sometimes easier to open an account with a bank rather than with a credit union? a. Most credit unions require some kind of affiliation, but banks will let anyone with money open an account. b. Credit unions usually require more paperwork than banks. c. Banks can generally open an account immediately, but credit unions require a waiting period. d. Banks can open accounts over the phone or online, but credit unions can only open accounts in person.

A 60 ounce glass bottle of juice sells for $4.20 while a 1.5 liter of the same juice sells in a plastic bottle for $3.06. Compare the unit prices of the juice for the two containers. (1 liter is approximately 34 ounces) a. The juice in the glass bottle is 1 cent cheaper per ounce. b. The juice in the plastic bottle is 1 cent cheaper per ounce. c. The juice in the glass bottle is 10 cents cheaper per ounce. d. The juice in the plastic bottle is 10 cents cheaper per ounce.

An electric guitar costs $830, with a $225 full-replacement warranty. If the manufacturer sells 532,475 warranties and has to honor 12% of them, how much profit did the manufacturer gain from the warranties? a. $105,430,050 b. $66,772,365 c. $53,034,510 d. $508,726,615

Chuck has a gross pay of $815.70. By how much will Chuck's gross pay be reduced if he has the following items withheld? federal tax of $56 Social Security tax that is 6.2% of his gross pay Medicare tax that is 1.45% of his gross pay state tax that is 19% of his federal tax a. $73.04 b. $129.04 c. $235.51 d. $273.38

Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings. a. $901.41 b. $9,014.10 c. $1,262.25 d. $12,622.50

Gerald would like to add a dental and vision option to the health insurance plan he purchased through his employer. In addition to the 65% of Gerald's $345 monthly health insurance premium, his employer has offered to pay 50% of a $38 monthly dental premium and 75% of a $23 monthly vision premium. If Gerald adds both the dental and vision options to his insurance plan, how much will he pay each month towards health insurance? Soopergood Insurance Option Monthly Premium Employer Contribution Health Insurance $345 65% Dental $38 50% Vision $23 75% a. $141.75 b. $145.50 c. $149.50 d. $260.50

Giselle wants to buy a condo that has a purchase price of $163,000. Giselle earns $2,986 a month and wants to spend no more than 25% of her income on her mortgage payment. She has saved up $33,000 for a down payment. Giselle is considering the following loan option: 20% down, 30 year at a fixed rate of 6.25%. What modification can be made to this loan to make it a viable option, given Giselle's situation? a. Change to a 15 year fixed loan b. Change the interest to 5.5% c. Change the down payment to 18% down d. None. This is a viable option for Giselle.

In order to move in to a rental house, Sky and Max must pay a deposit of $1,500. At the end of one year, Sky and Max have spent a total of $11,280 on their rental costs. How much did they pay for their monthly rent payment? a. $750 b. $815 c. $940 d. $1,065

Jim and Stephanie just got married and are thinking about changing their health care insurance plans to be more affordable. Currently, both Jim and Stephanie are insured through their own employers. Jim's employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries. Stephanie's employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary. Insurance Jim's Employer Beneficiary Monthly Premium Employer Contribution Jim $378 42% Additional (each) $345 23% Stephanie's Employer Beneficiary Monthly Premium Employer Contribution Stephanie $298 35% (+10% for each additional beneficiary) Additional (each) $349 30% Which would be the most economical way for the couple to purchase health insurance? a. They should both add each other to their plans. b. Stephanie should add Jim to her health care plan. c. Jim should add Stephanie to his health care plan. d. They should each purchase a plan from their own employer.

Karina bought a townhouse for $199,900. She has a 30 year mortgage with a fixed rate of 5.5%. Karina's monthly payments are $998.08. What percent of the purchase price was Karina's down payment? a. 7% b. 12% c. 15% d. 18%

Leonardo makes the following purchases at the store: 1 backpack for $16.89 5 spiral notebooks for $1.19 each 1 pack of mechanical pencils for $3.68 2 packs of lead refills for $1.88 each Leonardo has 2 coupons, each for 45 cents off on the purchase of a pack of lead refills. The coupons are applied after tax and the sales tax is 5% of the purchase. If Leonardo paid $30.89 , then he _____ for his purchase. a. did not pay enough b. paid the correct amount c. paid $0.04 too much d. paid $0.57 too much

Li-Mei thinks she can save money on electricity by changing all her bulbs from incandescent bulbs to fluorescent bulbs. Based on the following energy cost table, how much can she save each year if she replaces 8 bulbs? Incandescent bulb - 150 hours monthly use $.05 per hour Fluorescent bulb - 150 hours monthly use $.02 per hour a. $36 b. $432 c. $54 d. $1,008

Limited mobility may be a disadvantage of buying because the home is _____. a. difficult to get around in b. difficult to sell c. expensive to repair d. far away from work

Say you are buying a bicycle. You do not plan to use the bicycle for more than a few years before buying a new one, but will rely on it in the meantime. You know that your bicicyles tend to need repairs periodically, but you tend to take good care of them overall. The bicycle is relatively cheap, so you do not want to invest too much money into it. What kind of warranty would be a good one to purchase and why? a. full warranty b. limited warranty c. replacement warranty d. overlapping warranty

Stacy thinks her employer may not be withholding the correct amount from her paychecks for state income tax. She made arrangements to have 19% of federal income tax withheld for state income tax. On her last paycheck, the federal withholding was $163.88 and her state income tax withholding was $24.58. Which of the following statements is true? a. Stacy's employer is withholding the correct amount for state income tax. b. Stacy's employer is withholding too little for state income tax. c. Stacy's employer is withholding too much for state income tax. d. Stacy's employer should not be withholding state income tax.

The Picketts have lived in their house for about 13 years. They like to keep a well-maintained property and have noticed that the paint on the exterior of their house is starting to peel. They get two bids for painting services from two different contractors. Based on the fee schedule below, which option would be the cheapest and by how much? Handyman's Paint Service Painting Plus Service $2250 all supplies and labor included for a 2-day job Two day job estimate $300 preparation work $765 labor per day $225 paint and supplies a. Painting Plus Service would be cheaper by $960 b. Painting Plus Service would be cheaper by $195 c. Handyman's Paint Service would be cheaper by $105 d. Handyman's Paint Service would be cheaper by $195

The following closing costs were paid on a home loan. Closing Cost Charge Loan origination $320 Title insurance $473 Attorney's fees $915 Appraisal $415 Recording fees $103 Escrow $1,318 If the closing costs were 5% of the loan amount, how much was the loan amount? a. $62,580 b. $70,880 c. $74,424 d. $177,200

The following list shows the items and prices for a restaurant order. Calculate the total amount if there is a 7% tax and the customer leaves a 20% gratuity. 1 appetizer: $7.39 2 entrees: $16.99 each 1 dessert: $5.29 2 drinks: $2.30 each a. $65.82 b. $65.10 c. $54.85 d. $40.60

Use the conversion that 1 ounce is approximately 28.35 grams to calculate the unit price per ounce for 283.5 grams at $5.48. a. $0.06 b. $0.55 c. $5.48 d. $54.80

Vítor knows he must prepare and possibly prevent overdraft funds fees since they are charged automatically. Which statement below would be the least effective element of a plan Vitor could use to accurately estimate (or minimize) overdraft fees on the account? a. Always keep extra money in the account for such unexpected events. b. Use the debit card for a large number of small purchases and check the balance later. c. Always keep track of how much is being temporarily held d. Do not enter deposits into the register until they are verified as available.

Which of the following items may be a good consideration in selecting a bank? I. The bank sends a representative to the local mall to promote new applications. II. Number of ATMs or bank branches near where you live, shop, work, or travel. III. Knowledge of personal usage habits and needs. a. I and II b. II and III c. I and III d. I, II and III

You work for a lending institution and are tasked with whether or not to approve a home loan. All applicants are required to have a 20% down payment, and the standard 28/36 ratio is used The loan application is for $230,000. You see that the applicant has an annual salary of $83,000 and a savings account balance of $50,000. The applicant also has a car payment of $315, a student loan of $140 and a boat loan of $96. How likely are you to approve the loan? a. Very likely; recurring debt is considerably less than what is allowed. b. Somewhat likely; recurring debt is very close to what is allowed. c. Not likely; recurring debt is higher than what is allowed. d. There is not enough information given to determine the answer.

2007-02-03-00-00_files/i0120000.jpg Mario has gross biweekly earnings of $784.21. By claiming 1 more withholding allowance, Mario would have $13 more in his take home pay. How many withholding allowances does Mario currently claim? a. 3 b. 4 c. 5 d. 6

A savvy shopper combines a 25% off coupon with the store's existing 25% off sale. Ignoring sales tax, how much of the base price should the shopper expect to pay? a. 75% b. 56.25% c. 50% d. 43.75%

Approximately how much principal would need to be placed into an account earning 3.575% interest compounded quarterly so that it has an accumulated value of $68,000 at the end of 30 years? a. $23,706 b. $23,377 c. $52,069 d. $58,944

Barry wants to open a checking account. He wants online services, and a debit card. He is looking at the following tables of fees from his employer's credit union, EECU, and a local bank, E-town Bank: 2007-04-01-00-00_files/i0250000.jpg Based upon past experience, Barry expects no overdrafts. He expects no 2nd copies of statements. Barry estimates that he will use network ATMs about 5 times a month with either bank. Barry decides in the end to choose EECU. Assuming that both banks provide the necessary services equally well, and based upon the tables of fees given above, how much can Barry reasonably expect to save annually by choosing EECU in this case over E-town bank? a. $72 b. $78 c. $144 d. $24

Choose the correct comparison and rationale. "An emergency fund is most similar to..." a. ...an insurance policy, because it might not cover all of your expenses. b. ...an insurance policy, because it provides a measure of security against a disaster. c. ...a savings fund, because it should be kept as liquid as feasible. d. ...a savings fund, because it is a luxury that comes after paying bills or debts.

Christina will be retiring next month from her job after 35 years as a school bus driver. Over the last 35 years, Christina's annual salary averaged $22,040. She expects to receive some money each month from Social Security and plans to take the rest of the money she needs to pay the monthly bills from savings. Each month her bills total to about $1,375. Assuming her annual Social Security benefit will be 42% of her salary average, how much will she need to take from savings each month to help pay the bills? a. At least $771.40 b. At least $603.60 c. At least $629.71 d. At least $1,722.08

Consider the following incomplete deposit ticket: 2007-04-04-00-00_files/i0200000.jpg What was the value of the third check Tony deposited? a. $617.60 b. $105.20 c. $31.28 d. $36.76

Elizabeth has $252.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 114.60 150.00 Tuesday 79.68 --- Wednesday 161.39 --- Thursday 57.40 --- Friday 22.85 75.00 Saturday 140.55 --- On what day does Elizabeth first get charged an overdraft fee? a. Wednesday b. Thursday c. Friday d. Saturday

Emergency funds are important because they ____________. a. earn interest, making it unnecessary to work. b. are available when they are most needed, such as after a job loss. c. make it possible to pay monthly bills. d. keep money separated so that the balance will not change.

Employee benefits ______. a. decrease total employment compensation b. increase total employment compensation c. decrease net pay d. increase net pay

Give an example of when an actual net income would result in a negative number. a. When the budgeted expenses exceed the actual expenses, the result is a negative actual net income. b. When the actual expenses exceed the actual income, the result would be a negative dollar amount. c. When the budgeted income is less than the actual income, the result is a negative actual net income. d. When the actual expenses are less than the actual income, the result is a negative dollar amount.

How can simple interest make saving money easier? a. Because it is simple, you have to do fewer calculations than if you saved money without it. b. Simple interest allows your money to earn money, so you have to save less. c. You are more motivated to reach goals that you are interested in, so you are less likely to abandon your savings plan. d. A bank with a simple interest savings plan will automatically transfer money from your paycheck to your savings account, letting you save without any extra effort.

If a unit price label has a unit price of 21.5 cents per pound, how much is the total price for an 8 pound package? a. $0.37 b. $1.72 c. $2.69 d. $17.20

If total employee benefits are calculated as a percentage of their gross pay, which of the following employees receives the largest percentage of their gross pay in employee benefits? a. Employee A: gross pay $32,600 , total job benefits $33,600 b. Employee B: gross pay $32,900 , total job benefits $34,000 c. Employee C: gross pay $33,400 , total job benefits $33,900 d. Employee D: gross pay $33,700 , total job benefits $34,700

If you want to increase the amount of monthly savings in your budget, which of the following methods would reasonably be the most effective? a. Keep "Essential Expenses (Fixed)" the same amount every time the budget is revised. b. Determine a "Non-Essential Expense", or any other expense, that can be reduced. c. Pay bills as late as possible, in order to increase the amount of cash available. d. Use only money from the emergency savings for unexpected expenses.

In which of the following stores would you pay the least amount for an item that is priced $360? Store A: Sale of 10% off and a successive discount of 10% off. Store B: Sale of 15% with no additional discount. Store C: Sale of $35 off and a successive discount of 10% off. a. All of the stores have the same discounted price. b. You can get the lowest price at Store A. c. You can get the lowest price at StoreB. d. You can get the lowest price at Store C.

Irving spent the day shopping and made the following purchases: Item Cost ($) Novel 8.75 Shirt 21.66 Lunch 9.13 Potted plant 16.89 When Irving was done, he checked his account balance and found he had a total of $95.06. How much money was in Irving's account to begin with? a. $56.43 b. $151.49 c. $38.63 d. $142.36

Jacob is ready to move into his own apartment. He has a great job earning $1680 per month. What is the best way Jacob's budget can be modified to help him make the $600 monthly rental payment? Monthly Budget Old Budget New Budget Income Wages $1680 $1680 Expenses Rent Food Clothes Savings Recreation Car Expenses $0 $200 $75 $700 $400 $300 $____ $____ $____ $____ $____ Net Income $5 $____ a. Jacob could spend less on food and clothes to make his $600 monthly rental payment. b. Jacob could spend less on recreation and reduce the amount that he is saving to make his $600 monthly rental payment. c. No modifications to his budget would be necessary as long as he takes on a part-time job on the weekends to increase his income and help pay his rent. d. Jacob could spend less on food and recreation to make his $600 monthly rental payment.

Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10 year policy? 2007-06-01-00-00_files/i0050000.jpg a. $1,290 b. $1,202 c. $6,010 d. $820

Maria, age 28, wants to pay no more than $300 a year in life insurance. What is the face value of the largest 20-year term policy she can buy without spending more than $300 annually? 2007-06-01-00-00_files/i0240000.jpg a. $234,000 b. $158,000 c. $11,000 d. $567,000

Megan used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it does not. Friendly Bank Reconciliation Worksheet Amount 1. Enter the statement closing balance. $ 487 13 2. Enter the sum of any outstanding deposits or credits. $ 186 68 3. Add lines 1 and 2. $ 673 81 4. Enter the sum of any outstanding checks or debits. $ 174 01 5. Subtract line 4 from line 3. $ 499 80 6. Enter your checkbook balance. $ 362 60 Note: Lines 5 and 6 should be equal at the end of the reconciliation. Megan wants to first look for a single transaction that could have caused this problem with reconciliation. What is the amount of the transaction that Megan should look for in order to find a solution to the problem? a. $325.79 b. $137.20 c. $12.67 d. $313.20

Miranda is opening a checking account, but she left her driver's license at home. Which, if any, of the following can she use to open her account anyway? I. Sav-A-Lot Discount Card II. Passport III. Social Security card a. I or II b. II or III c. I, II, or III d. None. You must have a driver's license or other state-issued ID to open an account.

Richard's checkbook register as of 02/19: Check # Date Description of Transaction Payment/Debit (-) Fee (-) Deposit/Credit (+) Balance 02/03 Deposit $900.00 $900.00 02/05 Deposit - Paycheck $390.36 $1,290.36 201 02/05 Blue Sky Apartments $455.00 $835.36 202 02/07 Renter's Insurance $125.40 $709.96 203 02/18 Online Clothing Purchase $155.44 $554.52 02/19 Deposit - Paycheck $390.36 $944.88 Enter the following transactions into Richard's checkbook register and state his ending balance: Date Type Description Amount 03/01 Check #204 Blue Sky Apartments $455.00 03/05 DEP Payroll automatic deposit $390.36 03/08 Debit Benny's Hamburgers and Fries $9.20 03/15 Check #205 Car payment $251.59 03/19 DEP Payroll automatic deposit $390.36 a. $715.79 b. $1,009.81 c. $780.72 d. $880.24

Roger wants to make a deposit into his savings account. He is depositing 2 checks, one for $125.62 and the other for $532.50. He would like to receive $40.00 in cash after the deposit. Calculate the amount that he will be depositing into his savings account. a. $658.12 b. $618.12 c. $743.74 d. $698.12

Rounded to the nearest thousandth, what is the decimal equivalent of 2007-03-04-00-00_files/i0240000.jpg%? a. 0.067 b. 0.068 c. 0.677 d. 0.678

Sammy makes $2,362/month as a baseball coach. He is making a budget, and has created the following chart in order to divide his monthly paycheck into his various accounts: Expense type Frequency Account Monthly amount Items Essential (fixed) Monthly Checking $1,292 Rent, car, insurance Essential (variable) Monthly Checking $420 Basic groceries, telephone, electricity, cable TV, batting practice Non-essential Monthly Cash $260 Snack items, restaurants, gifts, movies Other (predictable) Annual Savings $130 Health exams, clothing, food, baseball coach magazine Other (unpredictable) Annual Emergency savings $210 Non-insured healthcare, repairs, and income replacement Other (long-term) 5 years Vacation savings $50 Vacation Total $2,362 Sammy makes monthly deposits from each paycheck into the various accounts, and then spends from those accounts only for their defined purposes. He knows that it is not a perfect system, but thinks that it will help to assure coverage for future expenses. Using his essential expenses as a guideline, how much will Sammy need to save if he wants to have 3 times the amount of his living expenses in the bank as part of his emergency savings. How long will it take him to achieve his goal? a. $1,712; approximately 8 months b. $5,136; approximately 24 months c. $6,486; approximately 30 months d. $2,162; approximately 6 months

Say you are grocery shopping and you come across an item for which the unit price is not labeled. How can you find the unit price on your own? a. Look at the nutrition facts on the package and find the percent value of the calories the item contains, then divide the price by that value. b. Find a convenient and reasonable unit of measurement to use, then divide the cost of the package by the number of units chosen in that package. c. Find a different item of comparable type and divide the cost of your item by the cost of the similar item. d. You can't find the unit price without knowing how much the item cost to produce, so you will need to contact the grower or manufacturer.

Social Security and Personal Income tax are called Payroll taxes because _____. a. they help to balance the national payroll budget. b. they are automatically deducted from payroll. c. once paid, they are used to supplement the paychecks of people in need. d. you need to prove you have paid them before you can pick up your paycheck.

Tanisha lives with her older sister and helps with the rent by paying $500 per month. Her annual salary as a child care specialist is $14,700 after taxes. Shopping is her favorite pasttime and loves buying new things, but she also wants to save money for her college classes. Select the budget that would best help meet her goals. Table A Monthly Budget Budget A Budget B Budget C Budget D Income $1,470 $1,225 $1,470 $1,225 Expenses - Rent Food & Personal Items Clothes Savings $500 $120 $50 $700 $500 $120 $150 $400 $500 $120 $400 $400 $500 $120 $400 $150 a. Budget A b. Budget B c. Budget C d. Budget D

The music store is having a 15% off sale on all classical music cds. Lyell has a coupon for 20% off any classical music cd. How much will Lyell save on a classical music cd that has a price of $23.99? a. $7.20 b. $7.68 c. $8.40 d. $9.60

Using the following prices, calculate the unit price to determine how much it would cost for 5 containers of yogurt and 3 containers of applesauce. $4.29 for 6 containers of yogurt $3.39 for 8 containers of applesauce a. $4.39 b. $4.85 c. $6.41 d. $7.68

What are you primarily doing when you reconcile your checking account? a. Making sure the bank spelled your name properly. b. Making sure that your records match your bank's records. c. Writing down the transactions that your bank automatically records so you don't have to. d. Calling the bank to check the dates on each transaction.

What does it mean for a manufacturer's warranty and an extended warranty to overlap? a. Both warranties cover the product against the same problems. b. Both warranties cover the product over the same period of time. c. Both warranties will pay separately in the event that the product breaks. d. Both warranties come from the same source.

What is the difference between a co-payment and co-insurance? a. Co-payment refers to two spouses paying for the same coverage, and co-insurance refers to two spouses receiving the same benefits. b. A co-payment is a flat fee for each service, and co-insurance is based on a percentage of the costs incurred. c. Co-payment is when a group of individuals work to cover each other's medical expenses, and co-insurance is when an individual has multiple insurance policies from different companies. d. A co-payment is when an employer helps an employee pay for insurance premiums, and co-insurance is when an employer helps an employee find better insurance than they could alone.

When must you sign a deposit slip? a. You must always sign a deposit slip. b. You only need to sign a deposit slip when receiving cash. c. You only need to sign a deposit slip when using an ATM, rather than depositing at the bank. d. You never need to sign a deposit slip. Your account information is enough.

Which of the following would affect an employee's net pay? a. Opting out of their employer's dental insurance plan and putting the money saved into their employer's health insurance plan b. Claiming a different number of dependents and thereby reducing their income tax withholdings c. Getting a raise and putting the extra money into a 401(k) plan d. Receiving a bonus in the form of extra vacation days

Which of the following would be a good reason to place your money into a savings account? a. You can purchase stocks with a savings account b. A savings account earns interest c. You can write checks with a savings account d. You can use a debit card to make transactions

Your monthly living expenses are $1500 on an income of $1,650 per month. Your goal is to have an emergency fund of 4 times your monthly living expenses. Your emergency fund savings account has $2,400 and you put the remainder of your monthly income into the emergency fund each month. How much more money would you have to save each month to complete your emergency fund in 12 months? a. $300 per month b. $150 per month c. $75 per month d. $60 per month

Zalia meets her friend at the science museum to see a special exhibition. The admission to the museum is $12.50 plus tax. Zalia pays for herself and her friend. They have lunch at the museum's cafe. Zalia has a sandwich for $5.95, an apple for $1.25 and a drink for $1.69. She is charged tax and also tips her server 15%. If tax is 7.25%, how much did Zalia pay all total for her day at the science museum? a. $41.43 b. $37.68 c. $36.35 d. $24.27

ack is considering a list of features and fees for Current Bank: Jack plans on using network ATMs about 4 times per month. What would be Jack's total estimated annual fees for a checking account with direct paycheck deposit, one overdraft per year, and no 2nd copies of statements? a. $44 b. $104 c. $144 d. $176

A couple is required by their lender to have a down payment of 20% of the purchase price of the home they want to buy. If the couple has saved $35,000, what is the most expensive home the couple can afford to buy? a. $63,000 b. $140,000 c. $175,000 d. $210,000

A lender estimates the closing costs on a home loan of $50,000 as listed below. Closing Cost Charge Loan origination $200 Title insurance $530 Attorney's fees $600 Appraisal $265 Inspection $575 Recording fees $130 Escrow $800 If the lender's good faith estimates are accurate, are they a reasonable amount for closing costs? Why or why not? a. Yes, because the lender esitmated 3.08% of the home loan in closing costs which falls between 3 - 5%. b. Yes, because the lender estimated 4.6% of the home loan in closing costs which does not fall between 3 - 5%. c. No, because the lender estimated 6.2% of the home loan in closing costs which does not fall between 3 - 5%. d. No, because the lender estimated 17.7% of the home loan in closing costs which does fall between 3 - 5%.

A pharmacist is trying to stock the pharmacy with cheaper alternatives for customers. She will stop carrying the more expensive items. In doing so, she is trying to determine which of the following forms is the most expensive. Tablet form comes in 50 mg tablets and cost $75.00 for a bottle of 100 tablets. Capsule form comes in 75 mg capsules and cost $63.75 for a bottle of 85 capsules Caplet form comes in 100 mg caplets and cost $70.00 for 40 caplets. Based on the given information, which form is the most expensive? a. Tablet form is the most expensive. b. Capsule form is the most expensive. c. Caplet form is the most expensive. d. The forms all have the same unit price.

An investment of $2,000 is earning interest at the rate of 6.2% compounded quarterly over 5 years. Approximately how much interest is earned on the investment? a. $724.67 b. $2127.72 c. $720.37 d. $2720.37

Bob's employer covers 23% of his family's annual health insurance premium. The balance of the premium is deducted in equal amounts from Bob's paycheck 26 times over the calendar year. If $185.30 is withheld from each of Bob's paychecks, what is his family's annual health insurance premium? a. $805.65 b. $4,817.80 c. $6,256.88 d. $20,946.96

Consider the following incomplete deposit ticket: 2007-04-04-00-00_files/i0220000.jpg How much did Kay deposit in cash and coins? a. $404.57 b. $213.51 c. $93.44 d. $284.50

DeShawn is 38 years old and is married with 3 children, ages 2, 4, and 6. He makes $45,000 a year and is planning to retire when he turns 60. From the following three options, DeShawn decides to buy the $900,000 20 year term policy. Given DeShawn's scenario, assess whether DeShawn made a wise decision. 2007-06-01-00-00_files/i0180000.jpg a. DeShawn would be safer buying whole life policy. b. DeShawn would have more money in the long run if he invested in the 20-year endowment. c. DeShawn's current policy will cover his family for an adequate period of time at his current salary. d. DeShawn's current policy has too high of a face value and does not cover his family long enough.

If you invest $3,900 at a 7.83% simple annual interest rate, approximately how long will it take for you to have a total of $10,000? a. 12 years b. 15 years c. 20 years d. 30 years

In what way is a debit card similar to a check? a. You must always provide a signature to use either. b. Both always take a few days to clear, so there is some float time until the payment goes through. c. Both pull money directly from a checking or savings account. d. Both charge interest on the purchases you make with them.

Macky wants to open a checking account. He is examining different banks and banking accounts. Then he will choose a bank account for his needs. Which of the following statements should not be one of Macky's reasons for choosing a bank? a. Being more informed leads to being better prepared to make financial decisions. b. Banks could have charges that Macky does not know about until reading carefully. c. The first bank Macky considered offered a chance to win a prize upon opening an account. d. He will become more aware of how well banks meet his particular needs.

Mika wants to buy a condominium. He has the choice of buying it now or renting it with the option to buy at the end of 3 years. If he buys now, he could put $0 down, but he must pay closing costs of $7,100. His monthly mortgage payment will be $675. Mika decides to rent instead of buy because it is the cheapest option over the first 3 years. His move-in costs are one month's rent and a $750 security deposit.To the nearest dollar, what is the maximum amount of monthly rent payment he could pay? a. $636 b. $654 c. $828 d. $851

Mr. Henderson's annual premium of $4,668 is covered entirely by his employer along with 25% of the $9,264 premium for his wife and kids. How much of the Henderson family's annual premium is being paid for by Mr. Henderson's employer? a. $2,316 b. $3,483 c. $6,984 d. $10,431

Of the following, which factor or factors would make it more likely that buying an extended warranty is a good idea? I. The extended warranty overlaps with the manufacturer's warranty. II. The product has a high probability of needing repair in the next few years. III. The product is a major purchase that you are unlikely to soon replace. a. I and III b. II only c. II and III d. I, II, and III

Samantha is trying to determine how she can save money by cutting her electricity bill. She is currently on a standard use plan for electricity and pays 8.5 cents per kWh. She keeps track of when she uses electricity and is thinking about switching to an interval use plan for electricity which costs 2 cents per kWh for off-peak use and 13 cents per kWh for on-peak use. Off-peak hours are from 8PM - 8AM and on-peak hours are from 8AM - 8PM. Below is the chart of her electricity usage: Samantha's Electricity Usage Per Month 1100 kWh between 8PM and 8AM 800 kWh between 8AM and 8PM Explain and justify which plan would best suit her needs. a. Samantha should not switch to the interval use plan, which would cost $126.00 more per month. b. Samantha should switch to the interval use plan, which would save her $126.00 per month. c. Samantha should switch to the interval use plan, which would save her $35.50 per month. d. Samantha should not switch to the interval use plan, which would cost $35.50 more per month.

Sammy is a full-time students who does not work. He is too old to stay on his parents health insurance and is looking for his own health care program. The two options he is considering are outlined in the tables below. OPTION 1: Fee-for-service OPTION 2: HMO $225 monthly premium $630 monthly premium $7,500 deductible No annual deductible Co-pays: Co-pays: Name-brand Drugs: $30 Name-brand Drugs: $25 Generic Drugs: $12 Generic Drugs $10 Visits: Visits: Primary Care Physician $30 Primary Care Physician $20 Specialist: $75 Specialist: $62 Urgent Care: $100 Urgent Care: $50 Emergency Room: $250 Emergency Room: $175 The first option is a fee-for-service plan with a $7,500 deductible. Sammy must pay the deductible amount in health-related costs (not including co-pays) before the insurance company will contribute. This plan costs $225.00 per month and requires co-pays for most standard healthcare costs. The second option is an HMO. It is significantly more expensive at $630 per month, but has no annual deductible. The standard co-pays are also less than those in the other option. Sammy is a young man in very good condition. He visits his primary care physician every other month to get physicals for school sports. He fills a prescription for his name-brand asthma inhaler every month. Sammy is an avid sportsman who loves skiing and snowboarding, two potentially dangerous activities. Considering the real possibility of a serious skiing or snowboarding accident that could put Sammy in the hospital for an extended period of time, which of the following statements is true for his situation? (Assume an extended hospital stay costs at least $12,000.) a. In the event of a serious accident, the $7,500 deductible makes Option 1 the cheaper of the two. b. The lower monthly premium associated with Option 1 is enough to offset the cost of a serious accident. c. Even with the higher premium, Option 2 covers more of Sammy's health care costs in the event of a serious accident. d. Under Option 2, Sammy will have to pay for more of the health care costs resulting from a serious accident than he would under Option 1.

The climate in which Jonah lives is mild all year long except during the hotter summer months. For 3 months out of the year, Jonah needs to use 4 portable fans to cool his home. If the electricity to use one fan costs 1 cent per hour and each fan is on for about 96 hours per month, what is his total electricity cost for the fans during one year? a. $6.72 b. $3.84 c. $11.52 d. $2.88

Tyrell is gearing up for the football season and decides to purchase some items online. He has a promotional code for a one time $10 off any purchase of $50 or more. Tyrell orders 2 new jerseys at $32.89 each and a hat for $23.99. Tyrell pays 7% sales tax on his purchase, but pays no shipping charges. What is the total of Tyrell's online purchase? a. $50.16 b. $79.77 c. $85.35 d. $96.05

Using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual salary of $73,025? a. $2,190.75 b. $2,044.70 c. $1,703.92 d. $1,217.08

What is a financial risk of being a homeowner? a. The home may be difficult to sell. b. The home may need repairs. c. The home may decrease in value. d. The home may have taxes

Which of the following statements best describes the difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)? a. An HMO is paid a monthly premium for ongoing services while a PPO collects no money until after services are rendered. b. An HMO allows the insured individual to choose from a list of providers while a PPO assigns the insured individual the provider nearest his or her residence. c. An HMO requires the insured individual to go to a provider within their organization while a PPO allows the insured individual the option to receive care from a non-preferred provider at a higher cost. d. An HMO is usually paid for by the insured individual's employer while a PPO usually requires the insured individual to pay a co-pay or deductible for services.

Without buying points, a monthly mortgage payment will be $958. Buying 1 point at closing would reduce the payment to $948.75. If each point costs $1000.00, rounded to the nearest year, how long would it take to break even by buying 1 point? a. 7 years b. 8 years c. 9 years d. 10 years

f a 6.2% Social Security tax is applied to a maximum wage of $106,800, the maximum amount of Social Security tax that could ever be charged in a single year is: a. $213.60 b. $6,408.00 c. $6,621.60 d. $17,225.81

A box of candy weighs 340.23 grams and costs $18.99. If 1 gram is approximately 0.03527 ounces, what is the unit price per ounce of the candy? a. $0.53 b. $0.67 c. $1.58 d. $1.97

An investment of $9,875 earns 4.8% interest compounded monthly over 12 years. Approximately how much interest is earned on the investment? a. $4,740 b. $7,458 c. $7,672 d. $17,567

Analyze the following budget, with an income of $600, to determine how much can be spent on food for the month. Month________ Budgeted Amount Cell Phone $65 Food $___ Entertainment $95 College Savings $200 Car Expenses - Gas, Insurance $160 a. $210 can be spent on food. b. $145 can be spent on food. c. $80 can be spent on food. d. $260 can be spent on food.

Anna has $274.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 194.62 35.45 Tuesday --- 11.20 Wednesday 145.86 24.75 Thursday 53.35 33.80 Friday 31.60 45.77 Saturday 12.90 61.63 On which day or days does Anna get charged an overdraft fee? I. Wednesday II. Thursday III. Friday a. I only b. I and II c. II and III d. III only

Claire purchases a new dress for the prom. The dress is priced $160, but it is on sale for 30% off. Claire's aunt works at the store and can give her an additional 10% off. If the sales tax is 7.5%, how much does Claire pay for the dress? a. $93.24 b. $103.20 c. $108.36 d. $120.40

Clovis wants to make a surprise visit to his uncle who lives out of town. He purchases an airline ticket for $69. There is a 15% sales tax on the price of the airline ticket. In addition he must pay a baggage fee of $20. When he arrives at the airport, Clovis takes a taxi to his uncle's house which is 8 miles from the airport. The taxi fee is $2.50 per mile. If Clovis has spent a total of $123.35 for the airline ticket and taxi, at what percent of his fare did Clovis tip the taxi driver? a. 10% b. 15% c. 20% d. 25%

Consider the following incomplete deposit slip: Description Amount ($) Cash, including coins 15 00 Check 1 62 44 Check 2 27 83 Check 3 45 75 Subtotal ?? ?? Less cash received ?? ?? Total 62 23 How much cash did the person who filled out this deposit slip receive? a. $381.23 b. $451.02 c. $88.79 d. $436.02

Curtis just recieved a raise at work increasing his salary by $8,500. He knows that an increase in salary will increase the amount of federal income taxes withheld from his paycheck. Which of the following statement best describes the effect his raise will have on state income tax withholdings? a. State income tax is unrelated to federal, he will see no change in his state withholding. b. Since he is having more withheld for federal, he will have less withheld for state so that he pays the same amount in the end. c. State income tax is usually a set percentage of federal income tax. With an increase in federal he will see an increase in state withholding. d. Since he is making more money, the state government will take advantage of his raise and charge him more income tax. His state withholding will increase.

Dominic is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Dominic's spending pattern: Day Debit ($) Credit ($) Monday 158 --- Tuesday 69 44 Wednesday 175 --- Thursday 131 38 Friday --- 53 Saturday 22 14 If the bank charges Dominic an overdraft fee of $25 every time he overdraws his account, and Dominic overdrew his account on Thursday but not on Saturday, which of the following is a possible amount of money that Dominic could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees. a. $500 b. $480 c. $435 d. $400

Gary earned a gross pay of $1,047.30 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social Security tax deducted from Gary's gross pay. a. $6.49 b. $8.38 c. $64.93 d. $83.78

Gina invests $1,677 in an account paying 8.61% simple interest annually. How much interest has Gina gained after six years? a. $668.65 b. $240.65 c. $866.34 d. $2,543.34

Having a savings account can contribute to a person's overall financial well-being. Which one of the following is NOT a benefit of maintaining a savings account? a. A savings account provides security in tough financial times b. With a savings account, you can invest when the opportunity presents itself c. Having a savings account gives individuals the ability to borrow money from members in the community d. A savings account allows an individual to fulfill life long dreams

Henry is moving and needs to open a new checking account. He is trying to decide between three banks using the chart below: Bank X Bank Y Bank Z No monthly fees if balance stays above $500, otherwise $7 per month No monthly fees if check card is used less than 6 times per month $5 monthly fee No minimum balance $25 minimum balance No minimum balance Online banking services Online banking services Online banking services Non-Bank X ATM fee - $2.00 per transaction Non-Bank Y ATM fee - $1.50 per transaction Non-Bank Z ATM fee - $2.00 per transaction Henry usually has about $300 in his account at any given time during the month. He limits his ATM visits to one per week and is interested in banking online options. Bank X and Bank Z have 5 ATMs within a 5 mile radius of Henry's work and his new home. Which bank should he choose? a. Bank X b. Bank Y c. Bank Z d. Bank X and Z

If your bank charges an out-of-network service fee of $3.00, and you withdraw $20 from each of three out-of-network ATMs, how much money in total will be removed from your account? a. $60 b. $63 c. $69 d. $120

Many communities today are concerned with their local government's ability to appropriately manage the taxes it collects. If a government spends more money on expenditures than it collects in taxes, it may end up with not enough money, called deficit. Which of the following could result in a county government budget in deficit? a. The government raises sales and property taxes without adjusting expenditures. b. The county closes a fire station, reducing expenditures, without adjusting taxes. c. The county gives all public school teachers a $2,000 raise without adjusting taxes. d. The county collects donations to build a fountain in city hall.

Marilyn has a biweekly gross pay of $810 and claims 3 federal withholding allowances. Marilyn has all of the following deductions from her gross pay: federal tax from the following table2007-02-03-00-00_files/i0190000.jpg Social Security tax that is 6.2% of her gross pay Medicare tax that is 1.45% of her gross pay state tax that is 21% of her federal tax Determine how Marilyn's net pay will be affected if she increases her federal withholding allowances from 3 to 4. a. Her net pay will increase by $15.00. b. Her net pay will decrease by $15.00. c. Her net pay will increase by $18.15. d. Her net pay will decrease by $18.15.

Mr. Green orders some cookies from a local youth group. Using his order form shown below, complete the last column to find the total to be paid. Quantity Description Unit Price Total of Line 2 Krispy Kosmos $2.89 $ 1 Chewy Chocos $3.19 $ 1 Gooey Globs 2.99 $ Total $ 5.8% tax $ Total to be paid $ a. $9.60 b. $11.96 c. $12.65 d. $18.90

Mr. Thom makes $25,900/year salary as a document processor. He has made the following chart in order to divide his weekly paycheck into his accounts: Expense type Account Weekly deposits Essential (Fixed) 1st Checking account $219 Essential (Variable) 1st Checking account $115 Non-essential 2nd Checking account $40 Other (Unexpected) Emergency savings account $20 Other (Predictable) Education investment fund $10 Other (Predictable) Retirement investment fund $40 Other (Predictable) Emergency savings account $15 Total paycheck $498 Unfortunately, he has made a mistake in adding the numbers and has not allocated all of the paycheck. If he deposits the difference into the two emergency savings accounts, how much total per week can he then put towards emergency savings? a. $40 b. $60 c. $74 d. $55

Nika earns a gross pay of $73,000. Her total employee benefits are 22% of her gross pay and she has no job expenses. If Nika gets an increase in pay of $5,000, what will her total employment compensation be? (Note: Employee benefits are based on Nika's original gross pay.) a. $78,000 b. $79,100 c. $94,060 d. $95,160

Olivia deposits $6,952 in a savings account paying 3.72% interest. To the nearest dollar, how much money does Olivia have in total after sixteen years? a. $4,138 b. $8,568 c. $11,090 d. $29,901

On his road trip, Leon stops to refuel and get some snacks. He has the following purchases: 12 gallons of gas at $2.89 per gallon 2 granola bars for $1.59 each 1 apple for $0.89 2 bottles of vitamin water for $1.39 each Leon must pay 7.5% sales tax on everything but the gas, which already has tax included in the per gallon price. If Leon paid $44.64, then he _____ for his purchase. a. did not pay enough b. paid the correct amount c. paid $2.60 too much d. paid $3.11 too much

Ralph's current annual income is $32,000. Using the graph shown below, Ralph has calculated that he will have to pay a total of $9,280 in federal taxes this year. Which of the following statements is true? 2007-05-01-00-00_files/i0220000.jpg a. Ralph's calculation is too high, he has only calculated state taxes. b. Ralph's calculation is too high, his calculation includes state taxes. c. Ralph's calculation is correct, he will have to pay $9,280 in federal taxes this year. d. Ralph's calculation is too low, he did not include medical care in his calculation.

Real Estate tax, a tax based on the value of the land and the buildings owned by its taxpayers, is a good example of _____. a. income tax b. sales tax c. property tax d. wealth tax

Robert is currently working for a landscaping company earning $1520 per month. He has a dream of starting his own landscaping company and figures he would need to save $5000 to buy his own equipment. Select the budget that would help Robert most quickly achieve his financial goal of starting his own business, while still meeting his basic needs. Monthly Budget Budget A Budget B Budget C Budget D Income $1520 $1520 $1520 $1600 Expenses Rent Utilities Food Cell Phone Savings Entertainment Clothing $400 $80 $250 $0 $400 $220 $130 $400 $80 $25 $75 $600 $320 $0 $400 $80 $150 $70 $500 $125 $120 $400 $80 $400 $110 $260 $200 $150 Net Income $40 $20 $75 $0 a. Budget A b. Budget B c. Budget C d. Budget D

Ronald is trying to reconstruct his spending pattern from May. He knows that he had $315 in his account on May 1, but after that, his receipts and balance statements are all scrambled. Here are Ronald's records: Date Transaction Type Amount ($) 5/25 Purchase 66 5/18 Purchase 90 5/30 Purchase 188 5/24 Deposit 151 5/22 Purchase 152 5/8 Deposit 104 5/3 Purchase 175 5/6 Purchase 82 Assuming that this is a complete, if scrambled, record of Ronald's May spending and that any overdraft fees incurred do not affect the running total, how many times did Ronald overdraw his account in May? a. Ronald never overdrew his account. b. Ronald only overdrew his account once. c. Ronald overdrew his account twice. d. Ronald overdrew his account more than twice.

Sally has just finished her thirty-fifth year with her company and is getting ready to retire. During her thirty-five years, Sally's average annual salary was $45,603. How much can Sally expect to receive from Social Security annually if she were to retire today? (Assume she will receive 42% of her average annual salary.) a. $191.53 b. $1,915.33 c. $19,153.26 d. $191,532.60

Say that you are about to make a major purchase and would like to save money on sales tax. Which of these is a viable way to reduce the amount you will pay on sales tax? a. Sales tax is a tax like any other, so you can claim additional dependents and get a deduction on it. b. Businesses are allowed to charge a 1% fee for automatically calculating sales tax for you, so you should calculate the sales tax out yourself. c. Sales tax varies by state, so you can travel to a state with a lower tax rate and make your purchase there. d. If you buy an item on credit, the credit bureau must pay the sales tax instead of you, so you should make your purchase using a credit card.

The Changs updated their bedroom by purchasing a new lamp for $89.95 and a comforter set for $239.99. They paid 2007-03-04-00-00_files/i0120000.jpg% sales tax on their purchases. If the Changs paid $351.72 total, determine if they paid the correct amount. a. The Changs family paid $0.33 too much for their purchases. b. The Changs family paid $0.99 too much for their purchases. c. The Changs family paid $5.94 too much for their purchases. d. The Changs family paid the correct amount for their purchases

Trevor has an investment worth $6,774.50. He made his only deposit in it 22 years ago. Given that the investment yields 2.7% simple interest annually, how big was the initial deposit? a. $2,524.50 b. $4,024.03 c. $4,250.00 d. $11,404.88

Using a portion of her savings as a down payment, Sarah bought a new car in order to commute to her new job, reducing her savings account to only $2220. From her expendible income of $2440, essential expenses (fixed) are $1010 per month, essential expenses (flexible) are $500 per month, and nonessential expenses are $430 per month. Sarah has decided to reduce her nonessential expenses for 9 months to only $230 per month, in order to build her savings back up to $5820. Then she will return her nonessential expense budget to the original $430 per month. Choose the reason or reasons why Sarah would spend less money every month temporarily in order to have this fund. I. She realizes the importance of having an emergency fund. II. She wants to build up her retirement account. III.She understands that reducing expenses can increase savings. a. I b. II and III c. I and III d. II

Using mental math, the approximate tip to leave for a bill of $81.79, if you tip 15% would be _____.. a. $8.20 b. $10.30 c. $12.30

Which of the following does an appropriately cautious reading of a receipt entail? I. Making sure that the items charged are the same as the items received. II. Asking for a second copy for your records. III. Checking to see if all of the discounts were applied properly. a. I only b. II and III c. I and III d. I, II, and III

Which of the following investments will earn the greatest amount of interest? a. $2,400 invested for 3 years at 5.0% interest b. $1,950 invested for 4 years at 4.0% interest c. $1,600 invested for 8 years at 3.0% interest d. $1,740 invested for 2 years at 8.0% interest

Which of the following is most likely used by a seller to target an impulse buyer? a. contest b. coupon c. display d. rebate

Which of the following must be present for a check to be legitimate? I. Your signature II. A memo or note III. The payee a. I and II b. III only c. I and III d. I, II, and III

Wilma buys a new game that is priced $43.89. She gets successive discounts of 15% followed by 5% off on the game. The purchase price of Wilma's game is _____ of the original price. a. 79.5% b. 80% c. 80.75% d. 82%

You have a restaurant bill of $73.25. If you are taxed 2007-03-04-00-00_files/i0160000.jpg% and decide to tip your server 15%, how much is your total? a. $74.90 b. $89.44 c. $89.73 d. $90.56

Choose the correct answer and rationale. "The prices listed on retail websites..." a. ...are open to negotiation, because you can email the company. b. ...are reliable, because you have proof of the advertised price. c. ...are unreliable, because internet commerce does not have the same regulations as normal commerce. d. ...are often below the total cost, because they usually do not include shipping charges.

In which of the following cases would you most likely buy a point when closing on a home loan? a. The monthly payment is reduced by $8 and you plan to sell the home at the end of 3 years. b. The monthly payment is reduced by $10 and you plan to sell the home at the end of 4 years. c. The monthly payment is reduced by $12 and you plan to sell the home at the end of 5 years. d. The monthly payment is reduced by $14 and you plan to sell the home at the end of 7 years.

Joshua is 25 years old and has a high risk job making $72,000 a year. The insurance company charges him an extra 20% on top of his premium rate because of his job. If Joshua wants a policy that will replace five years of his salary, what is the annual premium for the cheapest policy? 2007-06-01-00-00_files/i0210000.jpg a. $1,107 b. $1,328 c. $5,537 d. $6,644

Leiff goes online to buy a new video game. He finds a site that currently has a promotion of 15% off on all orders over $50. Leiff decides to buy his video game, with a price tag of $128, at this site because he knows that he will get the 15% discount when he checks out. Leiff pays 5.3% sales tax on the discounted price and pays a shipping fee of $4.75. What is the total of Leiff's online purchase? a. $112.84 b. $114.57 c. $118.82 d. $119.32

Oscar has elected to have 23% of his federal income tax withheld as state income tax. If $154.00 was withheld as federal income tax on his last paycheck, how much will be withheld from his paycheck for income tax in all? a. $35.42 b. $118.58 c. $177.00 d. $189.42

Which of the following is not a way health insurance helps to save you money? a. In many cases, your employer will pay a certain portion of your health insurance premium. b. Some health care plans have made arrangements with health care providers to offer their services at a lower rate. c. Many times, you only have to pay a deductible to receive goods or services. The remaining balances are paid by your insurer. d. Most health care plans set a portion of your premium aside in an escrow account so that you have money available in case of a medical emergency.

Which of the following statements explains the relationship between Social Security and Medicare taxes? a. Both Social Security and Medicare are applied to all wages up to the maximum taxable earnings. b. Both Social Security and Medicare are applied to all wages without limit. c. Medicare is applied to all wages up to the maximum taxable earnings. Social Security is applied to all wages without limit. d. Social Security is applied to all wages up to the maximum taxable earnings. Medicare is applied to all wages without limit.

Which of the following statements is true. I. The higher your interest rate, the higher your monthly mortgage payments. II. The higher your down payment, the higher your monthly mortgage payments. III. A 30 year mortgage fixed at 6% will have smaller payments that a 20 year mortgage fixed at 6%. a. I only b. II only c. I, II, and III d. I and III

Because Bernard has some health issues, he must pay 15% more for life insurance. About how much more annually will a $115,000 10-year term insurance at age 35 cost Bernard than someone of the same age without health issues? 2007-06-01-00-00_files/i0200000.jpg a. $161 b. $185 c. $1,073 d. $24

CA single person earns a gross biweekly salary of $840 and claims 5 exemptions. What is the person's net pay. a. It is the same as the gross pay. b. It is $11 more than the gross pay. c. It is $11 less than the gross pay. d. It is $13 less than the gross pay.

Eli is buying a townhouse that costs $276,650. He has $28,000 in savings and earns $4,475 a month. Eli would like to spend no more than 30% of his income on his mortgage payment. Which loan option would you recommend to Eli? a. 30 year FHA, 3.5% down at a fixed rate of 6.5% b. 30 year fixed, 5% down at a fixed rate of 6.25% c. 30 year fixed, 6.5% down at a fixed rate of 5.75% d. 30 year fixed, 10% down at a fixed rate of 5%

Four different stores have the same digital camera on sale. The original price and discounts offered by each store are listed below. Rank the stores from the cheapest to most expensive sale price of the camera. Store A: price $99.99 and discount of 15% Store B: price $95.99 and discount of 12% Store C: price $90.99 and discount of 10% Store D: price $89.99 and successive discounts of 5% and 5% a. A, B, C. D b. A, B, D, C c. D, A, B, C d. D, C, B, A

Given the following prices and unit conversions, rank the brands from lowest to highest unit price. Brand A: $1.48 for 2.5 pounds Brand B: $1.30 for 907.18 grams; 1 pound is approximately 453.59 grams Brand C: $1.55 for 50 ounces; 1 pound is equal to 16 ounces a. Brand A, Brand B, Brand C b. Brand A, Brand C, Brand B c. Brand B, Brand A, Brand C d. Brand C, Brand A, Brand B

If gross pay increases by $500, total employee benefits increase by $200 and total job expenses decrease by $300, then total employment compensation _____. a. increases by $400 b. increases by $700 c. increases by $800 d. increases by $1,000

Lauryn's wages were not as much as she had budgeted. How can her budget be modified so there will be a positive actual net income? a. Reduce the food expense by $50. b. Reduce the clothes expense by $75. c. Reduce the recreation expense by $25. d. Do all of the above.

Luce is single and making $763 biweekly. She claims no federal withholding allowances. If the state tax is 19% of the federal tax, how much in state tax does Luce contribute? a. $12.92 b. $15.13 c. $15.77 d. $16.34

Nellie is buying bird seed to put in her bird feeders. She uses about 10 pounds of bird seed each week, but has room to store any extra that she purchases.The bird seed comes in 3 different sizes as given below: 3.5 pounds for $2.52 7.5 pounds for $5.40 11 pounds for $7.92 Nellie is trying to be a smart shopper and get the best deal on the bird seed. Which size bag of bird seed should Nellie buy? a. Nellie should buy the 3.5 pound bags because they have the cheapest unit price b. Nellie should buy the 7.5 pound bags because they have the cheapest unit price c. Nellie should buy the 11 pound bags because they have the cheapest unit price. d. Nellie should buy any size she wishes because they all have the same unit price..

Tracy goes on a 3 day and night school band trip. There is no cost for travel and each band member only pays half the cost of the hotel room. However, each person is responsible for the cost of their own meals. His portion of the hotel bill is $49 per night and Tracy leaves a 10% tip for the maid service. Before tax, Tracy spends $32 per day on eating out plus 15% of this amount in tips. If Tracy spends a total of $280.74 on the band trip, what percent tax was Tracy charged on his food? a. 6% b. 7% c. 8% d. 9%

Trevor's total employment compensation is $33,500. If Trevor has no job expenses and his gross pay is $28,600, then his total employee benefits are _____% of his gross pay. a. 4.9 b. 8.5 c. 14.6 d. 17.1

What is one difference between yearly and monthly budgets? a. Yearly budgets show a greater degree of planning, so it is appropriate to plan expenses more strictly and in a more detailed fashion in a yearly budget. b. Monthly budgets should focus on the short term, so it is not appropriate to consider planned but future expenses (such as a vacation) in a monthly budget. c. Yearly budgets are a better view of your financial goals, so you should work very hard to avoid changing yearly budgets. d. There is more uncertainty as you plan further ahead, so a yearly budget needs more room to account for unplanned expenses than a monthly budget does.

Which of the following companies offers the greatest total employment compensation? Company A Gross pay $38,200 Insurance $3,500 Paid time off $4,100 Company B Gross pay $39,000 20% of gross pay in total employee benefits Job expenses $700 Company C Gross pay $39,900 Insurance $3,200 Paid time off $3,900 Job expenses $1,000 Company D Gross pay $39,400 18% of gross pay in total employee benefits a. Company A b. Company B c. Company C d. Company D

Which of the following is not something that you could do with a normal checking account? a. Deposit cash into your account. b. Demand in writing that money be paid to another person from your account. c. Give permission to a merchant to demand money from your account. d. Make purchases or get cash now, and pay back the bank in monthly payments.

Which of the following is the best thing to consider when making comparisons between job offers? a. gross pay b. total employee benefits c. total job benefits d. total employment compensation

Which of the following should not be used as a guideline for making a purchase? a. You budgeted for it. b. You can afford it. c. You need it. d. You want it.

Which of the following is not an advantage of buying a home? Tax savings Potential Economic Gain Pride in Ownership Lower Initial Cost

lower initial cost

Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items withheld: Social Security tax that is 6.2% of her gross pay Medicare tax that is 1.45% of her gross pay State tax that is 22% of her federal tax a. $691.52 b. $666.21 c. $636.98 d. $623.52

A lender estimates the closing costs on a home loan will be 3% of the loan amount of $180,000. The actual closing costs are listed below. Closing Cost Charge Loan origination $345 Title insurance $600 Attorney's fees $1,350 Appraisal $480 Inspection $550 Recording fees $175 Escrow $1,900 Evaluate the lender's good faith estimate. a. The lender made an excellent estimate; it was equal to the actual closing costs. b. The lender made a very good estimate; it was within 0.25% of the actual closing costs. c. The lender made a fairly good estimate; it was between 0.25% and 0.5% of the actual closing costs. d. The lender made a poor estimate; it was higher than 0.5% of the actual closing costs.

Bessie has an annual salary of $51,360. Each month she has a car payment of $210 and a student loan of $50. If she applies for a home loan, how likely is it Bessie will be approved based on her debt-to-income ratio? a. Very likely; recurring debt is less than what is allowed. b. Somewhat likely; recurring debt is equal to what is allowed. c. Not likely; recurring debt is higher than what is allowed. d. There is not enough information given to determine the answer.

The manufacturing cost of an air-condioning unit is $544, and the full-replacement extended warranty costs $113. If the manufacturer sells 506,970 units with extended warranties and must replace 20% of them as a result, how much will the replacement costs be? (Note: Assume manufacturing costs and replacement costs are the same.) a. $55,158,336 b. $11,457,522 c. $2,129,274 d. $66,717,252

Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with a monthly income of $4,850. a. $388 b. $776 c. $970 d. $1,358

An investment of $6,599.20 earns 4.2% interest compounded monthly over 7 years. Approximately how much interest is earned on the investment? a. $2,250.96 b. $4,308.21 c. $6,762.59 d. $8,850.20

An investment of $7,650 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 9 years? a. $11,964.17 b. $11,867.66 c. $9,338.56 d. $8,554.94

For each of the following wages, determine the Medicare tax that would be withheld. i. $23,660 ii. $89,000 iii. $166,090 a. i. $343.07 ii. $1,290.50 iii. $2,408.31 b. i. $3,430.70 ii. $12,905.00 iii. $24,083.05 c. i. $146.70 ii. $551.80 iii. $1,029.76 d. i. $1,466.92 ii. $5,518.00 iii. $10,297.58

George tallies up the transactions in his check register and comes up with a total balance of $221.57, but his bank statement says that his balance is $203.73. Which of the following are still outstanding? I. A $20.25 check to the florist II. A $14.29 check to the dry cleaners III. A $38.09 check deposit IV. A $19.05 money order deposit a. I and III b. I and IV c. II and III d. II and IV

Given the graph below, predict the cost of utilities for Seattle, WA for the month of September based on the relationship with the other plotted line for Baltimore, MD. 2007-08-05-00-00_files/i0090000.jpg a. $263 b. $360 c. $151 d. $73

Lonnie is considering doing some long term investing with money that she inherited. She would like to have $50,000 at the end of 30 years. Approximately how much money would Lonnie need to put into an account earning 6% interest compounded annually in order to meet her goal? a. $8,706 b. $9,000 c. $27,778 d. $40,690

Maggie noticed that her financial record is missing information. She recalls that on October 15th, she purchased gasoline in the amount of $32.51 and on October 16th, she and her friends went out for dinner, where she spent $25.62. Given this information, and the image below, determine her balance as of October 26th. 2007-04-04-00-00_files/i0070000.jpg a. $112.16 b. $62.03 c. $27.62 d. $2.00

Chyou has heard that gas appliances are cheaper to use and can lower utility costs. She is interested in purchasing a new gas dryer to replace her electric dryer. Assuming that the dryer drys one load per day, use the following chart to determine how much Chyou will save each year in utility costs by purchasing the gas appliance. Electric Dryer 45 cents per load Gas Dryer 16 cents per load a. $165.25 b. $105.85 c. $58.40 d. $47.45

Eva is 29 years old and has 2 children, ages 3 and 5. She makes $48,500 a year. Eva decides to buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards. To renew the policy the insurance company charges an extra 40% to her premium rate. Given the options below, assess whether Eva made a wise decision. 2007-06-01-00-00_files/i0160000.jpg a. Eva would have been better off selecting the 20-year term policy. b. Even with the extra charge for renewal, Eva's plan is the least expensive. c. Given that Eva plans to renew, she should have selected the whole life policy. d. Eva ends up paying the same amount for each policy.

Mr. and Mrs. Donahue want to buy a home valued at $365,000. If they have 21.5% of this amount saved for a down payment, how much will their home loan be? a. $78,475 b. $286,525 c. $341,275 d. $357,153

Peter and Marcia, both age 34, can pay $650 a year each on life insurance. About how much is the face value of the largest combination of policies they can buy without spending more than a combined $1,300 annually? 2007-06-01-00-00_files/i0220000.jpg a. $1,945,000 b. $972,000 c. $789,000 d. $806,000

Peter wants to buy a duplex with a purchase price of $226,950. Peter can afford a 10% down payment. Peter earns $2,985 a month and wants to spend no more than 10% of his income on his mortgage payment. Peter is going to rent out the other half of the duplex. He thinks that if he charges $900 a month in rent this will cover the remainder of his mortgage payment. Given that Peter has a 30 year mortgage with a fixed rate of 6.25%, how should Peter adjust how much he charges for rent of the other half of the duplex? a. Peter should increase the rent by $200. b. Peter should increase the rent by $60. c. Peter should increase the rent by $10. d. Peter should keep the rent at $900.

What kind of warranty is often offered not through the manufacturer but instead through a third party? a. manufacturer's warranty b. extended warranty c. full warranty d. limited warranty

Michael needs to pay car insurance premiums of $958 two times per year. He has decided to make deposits from each paycheck to a savings account for "Other Expenses (Predictable)" to cover this expense. How much should Michael deposit from each paycheck if the paycheck is bi-weekly? a. $80 b. $74 c. $160 d. $37

Money is invested into an account earning 4.25% interest compounded annually. If the accumulated value after 18 years will be $25,000, approximately how much money is presently in the account? a. $5,875 b. $11,820 c. $19,125 d. $23,960

Two friends decide to rent an apartment and split the cost evenly. They each paid $575 towards the total move in cost of first and last month's rent and a security deposit. If the apartment cost $325 per month to rent, how much was the security deposit? a. $125 b. $250 c. $500 d. $825

How much money would need to be deposited into an account earning 5.75% interest compounded annually in order for the accumulated value at the end of 25 years to be $85,000? a. $75,425.52 b. $59,130.43 c. $21,009.20 d. $20,258.70

Bao has been notified by his electric company that his rates are going up on his graduated fee schedule. He currently pays: Standard Use Plan 6.5 cents/kWh for the first 600 kWh 12 cents/kWh for the next 600 kWh If his rates go up 1 cent in each category, find how much he will pay if he uses 875 kWh per month. Round to the nearest dollar. a. $72 b. $105 c. $66 d. $81

Chloe lives in an area where she runs the air conditioner during the 4 hottest months of the year. The air conditioner runs for 7 hours per day at a cost of 21 cents per hour. How much does she spend per year on utility bills for the air conditioner?(Assume there are 30 days in each month) a. $705.60 b. $588.00 c. $216.09 d. $176.40

Which of the following ratios is used to determine ones debt-to-income ratio? a. 20/28 b. 20/36 c. 28/30 d. 28/36

Why are closing costs a one time fee? a. Payment of closing costs is required because it is a sign to the lending institution that the investor has every intention of making payments on time. b. If closing costs were paid over time, they would most likely be forgotten and never paid off. c. Most home buyers pay for their houses in full, and consequently pay for the closing costs in full as well. d. The closing costs cover titles, taxes, and realtor costs. After closing, the only monetary obligation is to the lending party.

A clearance rack is marked as 35% off the regular price. A shirt on the clearance rack has a regular price of $45.99. If there is 7.25% sales tax, what will the shirt ring up for at the register? a. $17.26 b. $21.67 c. $29.89 d. $32.06

A lender estimates that the closing costs on a $293,600 home loan will be $11,010. The actual closing costs were 3.25% of the loan amount. Determine if the closing costs were higher or lower than the estimate and by what percent? a. higher by 0.25% b. higher by 0.5% c. lower by 0.25% d. lower by 0.5%

A statement of an employee's biweekly earnings is given below. Earnings Deductions Week Ended Regular FED. SOC. MED STATE WITH. WITH. CARE. WITH. NET PAY 9/10 $_____ $98.00 $52.88 $12.37 $22.54 $667.17 What is the employee's gross pay? a. $818.05 b. $830.42 c. $840.59 d. $852.96 A statement of an employee's biweekly earnings is given below. Earnings Deductions Week Ended Regular FED. SOC. MED STATE WITH. WITH. CARE. WITH. NET PAY 9/10 $_____ $98.00 $52.88 $12.37 $22.54 $667.17 What is the employee's gross pay? a. $818.05 b. $830.42 c. $840.59 d. $852.96

Given the following information, choose the brand that is the better buy. Brand A: $1.25 for 10 ounces Brand B: $1.47 for 12 ounces Brand C: $1.68 for 14 ounces Brand D: $1.84 for 16 ounces a. Brand A b. Brand B c. Brand C d. Brand D

June has a savings account with an annual simple interest rate of 2.6%. She hopes to gain $6,500 in interest over a period of eleven years. To accomplish this, June invested $17,801 in the account, but later realized that this was not enough money. To the nearest dollar, how much more money should June have initially invested to reach her goal? a. $6,335 b. $3,715 c. $1,409 d. $4,926

Sergio has decided to diversify his investments in the following way: $4,000 in an account earning 3.2% simple interest $4,000 in a savings account earning 2.1% interest compounded annually $7,500 in a certificate of deposit earning 5% interest compounded quarterly How much total interest will Sergio earn on his investments at the end of 4 years? a. $1,240.82 b. $2,123.90 c. $2,497.17 d. $2,507.90

The same amount of principal is invested in different accounts earning the same interest rate. Which of the following accounts would have the greatest accumulated value at the end of one year? a. An account earning no interest b. An account earning simple interest c. An account earning interest compounded annually d. An account earning interest compounded daily

What does PIN stand for? a. Principal Investment Number b. Permission Initiating Number c. Percent Increase Number d. Personal Identification Number

What is the defining feature of a progressive tax? a. A progressive tax is collected monthly, rather than yearly. b. A progressive tax is collected every year, rather than just once. c. Under a progressive tax, taxpayers have a more direct say in how their money is used. d. Under a progressive tax, those with more income shoulder more of the tax burden.

Which of the following is something that should not be a consideration when choosing a health care plan? a. annual premiums to be paid by the insured individual and family b. deductible or co-pay to be paid by the insured individual and family c. total coverage received by insured individual and family d. the coverage the insured individual and family already receive in auto insurance

Between permanent life insurance and term life insurance, which typically has the lower premium and why? a. Term life insurance has the lower premium because term life insurance pays the face value to your beneficiary if you die within a certain set period of time, whereas whole life insurance covers you your entire life. b. Term life insurance has the lower premium because you cannot renew the insurance after your term has ended. c. Permanent life insurance has the lower premium because you are making more premium payments (your whole life versus a set period of time), so the amount per premium payment is less. d. Permanent life insurance has the lower premium because the amount you contribute is then invested and makes interest for the life insurance company.

Consider the following incomplete deposit ticket. 2007-04-04-00-00_files/i0230000.jpg What was the subtotal of Rachel's deposit? a. $1,145.39 b. $746.23 c. $399.16 d. $1,075.95

If Jesse wants to buy a $75,000 10-year term life insurance policy, and the annual premium rate (per $1000 of face value) for his age group is $2.34, how much is Jesse's annual premium? a. $175.50 b. $3,205.12 c. $234.00 d. $1,755.00

Manny has just filled out his deposit ticket for his savings account. He hands it to the teller and the teller hands it back to Manny. The teller explains to Manny that the deposit ticket cannot be accepted in its current form. What must Manny do to the deposit ticket in order for the teller to process the deposit ticket? 2007-04-04-00-00_files/i0050000.jpg a. Manny forgot to sign the deposit ticket for less cash back b. The subtotal is calculated incorrectly c. The total is calculated incorrectly d. Manny forgot to date the deposit ticket

Rose and Dennis each open a savings account at the same time. Rose invests $2,600 in an account yielding 4.1% simple interest, and Dennis invests $2200 in an account yielding 5.7% simple interest. After nine years, who has the greater total amount of money, and how much greater is it? a. Rose has $230.80 more than Dennis. b. Rose has $559.40 more than Dennis. c. Dennis has $169.20 more than Rose. d. Dennis has $512.00 more than Rose.

Ruby wants to start her own business taking photographs. She already has her own camera, but needs to purchase lights, a photo printer, and photo paper. If the cost of the photo printer is $251.99, the cost of lighting is $150.00, and the cost for 100 sheets of photo paper is $30.98, determine how much of her savings will be used to start her company, given that she has $840.32 in savings. a. $432.97 b. $840.32 c. $432.62 d. $407.35

Which of the following forms of I.D. is not an acceptable form of I.D. for opening a savings account? a. Library card b. Driver's license c. Passport d. Military I.D. card

Which of the following most accurately describes when a debit card transaction takes effect? a. The transaction is completed almost immediately after making the purchase. b. The transaction takes two to three business days to clear. c. All debit card transactions are processed simultaneously at the end of the day. d. Debit card transactions are completed when you pay your monthly debit card bill.

The extended warranty on a $960 dishwasher is 21% of the purchase price and lasts for eight years. What is the effective cost per year of the extended warranty? a. $28.80 b. $45.20 c. $23.78

If a taxpayer does not have enough taxes withdrawn from her paychecks throughout the year to equal the total tax she is required to pay that year, she will owe the government the remaining balance. On the other hand, if the taxpayer has more money withheld for taxes than she is required to pay that year, she will receive a refund for the difference. Mary has determined that, based on her annual income of $36,000, her federal income tax for the year is $5,424. Mary gets paid on a bi-weekly basis, giving her 26 paychecks throughout the 52 week year. What is the minimum amount Mary must have withheld from each of her 26 bi-weekly paychecks in order to avoid owing the federal government at the end of the year? a. $104.30 b. $208.62 c. $692.31 d. $1,384.62

What is the benefit of paying discount points as part of the closing costs? a. Discount points give the buyer a discount on the mortgage. b. Typically points lower the interest rate on the mortgage. The more points that a buyer pays up front, the lower the interest rate. c. Points lower the overall cost of the home. The more points that a buyer pays up front, the lower the total cost at closing. d. Discount points give you a discount from the title company where you go to sign the loan papers.

When renting an apartment, in addition to the first month's rent, the amount to move-in often requires the last month's rent as well as a security deposit. The rent is $725 per month and the security deposit is $900. How much money must be paid to the apartment management to be able to live in the apartment the first year? Assume that the renters moved out at the end of the first year. a. $9,425 b. $9,600 c. $10,325 d. $11,050

Which of the following characteristics does apply to Medicare Part A but does not apply to Medicare Part B? a. Available only to those over 65 b. Covers hospital inpatient services c. Available to the spouse of beneficiaries d. Usually costs a monthly premium

Which of the following would least likely be used to determine your eligibility for a home loan? a. credit history report b. current utility bills c. recurring debt total d. savings account balance

Yolanda closed on a 20 year home loan for $83,000. She chooses to buy only 1 point at closing. By buying a point at her closing, Yolanda reduced her monthly payment by $7.63. Based on the fact that Yolanda chose to buy a point at closing, what would you infer is the minimum amount of time that she will own the home? a. 6 years b. 11 years c. 16 years d. 20 year

The national average utility cost is $270.48 per month. If the average phone bill is 12.6% of the total amount and the average utility cost for Dallas is $326, what would be the cost of a typical Dallas home phone bill? a. $48.30 b. $55.52 c. $34.08 d. $41.08

Bill has $270.61 in his account before making any transactions. Over the course of a week, Bill makes the following transactions: Transaction Debit ($) Credit ($) Paycheck --- 535.67 Electric bill 112.53 --- Groceries 90.79 --- Savings bond --- 50.00 Car payment 225.65 --- At the end of the week, how much money is in Bill's account? a. $518.10 b. $156.70 c. $427.31 d. $608.89

If an item tends to be very expensive to repair, how might that affect your decision to purchase a warranty for it? a. If an item is very expensive to repair, it is probably easier to buy a new one than to repair it, so a warranty is probably not worth it. b. The price of a warranty is based on the price of the repairs, so a warranty might not be a good idea. c. Buying an extended warranty might be a good idea so that you do not have to repair the item yourself. d. Buying a limited warranty might be a good idea because limited warranties sometimes do not deal with repairs, meaning that you will not have to handle these expensive repairs.

If the purchase price for a house is $309,900, what is the monthly payment if you put 20% down for a 30 year loan with a fixed rate of 6%? a. $729.98 b. $912.48 c. $1,486.41 d. $1,858.01

Which of the following statements accurately describes the result of a decreasing worker-per-beneficiary ratio in the Social Security system? a. Fewer taxed workers than beneficiaries means that the system is collecting more money for the money being drawn out. This leaves money in the system and secures benefits for future beneficiaries. b. Fewer taxed workers than beneficiaries means that the system is collecting more money for the money being drawn out. This leaves a shortage of money in the system making benefits for future beneficiaries unsure. c. Fewer taxed workers than beneficiaries means that more money is being drawn from the system for the money put in. This leaves a shortage of money in the system making benefits for future beneficiaries unsure. d. Fewer taxed workers than beneficiaries means that more money is being drawn from the system for the money put in. This leaves money in the system and secures benefits for future beneficiaries.

Why is a larger down payment beneficial to a home investor? a. A larger down payment would only be beneficial to an investor if they intended on renting out the house. b. A larger down payment would enable an investor to get a loan with a higher interest rate and lower monthly payments. c. A larger down payment would enable an investor to get a loan with a lower interest rate and lower monthly payments. d. A larger down payment is essentially a larger bribe to the lending institution and gets the investor in their good favor.

For each of the following wages, determine the Social Security tax that would be withheld. Use $106,800 for maximum taxable earnings. i. $23,660 ii. $89,000 iii. $166,090 a. i. $146.69 ii. $551.80 iii. $1,029.76 b. i. $1,466.92 ii. $5,518.00 iii. $10,297.58 c. i. $146.69 ii. $551.80 iii. $662.16 d. i. $1,466.92 ii. $5,518.00 iii. $6,621.60

In addition to the following closing costs listed below, the buyer pays a realtor commission that is 3.5% of the loan amount. Closing Cost Charge Loan origination $280 Title insurance $476 Attorney's fees $675 Inspection $200 Recording fees $118 Escrow $573 If the loan amount is $165,000, how much was paid at closing? a. $2,322 b. $2,899 c. $5,775 d. $8,097

What is the difference between a full warranty and a limited warranty? a. A full warranty is a guarantee to replace a faulty product, while a limited warranty is a guarantee to repair a faulty product. b. A full warranty will pay for repairs any number of times that the product breaks, but a limited warranty will only pay a certain number of times. c. A limited warranty is only good for a certain length of time, but a full warranty is good forever. d. A full warranty will cover any repairs or replacement that the product needs, while a limited warranty will only pay for certain repairs.

When calculating simple interest, what must you do if you want to invest for months or weeks instead of years? a. Simple interest only pays yearly, so you should find another investment. b. The simple interest calculation does not use those units, so you should just calculate as normal. c. The units have changed, so the interest formula switches to I·t=P·r. d. Interest rates are annual, so you must convert the units into years.

Which of the following acronyms does not represent a managed care plan? a. HMO b. PPO c. POS d. SOR

Which of the following is not an advantage of renting? a. ease of mobility b. fewer responsibilities c. lower initial costs d. restricted lifestyle

Why is simple interest useful for planning parts of your financial future? a. Simple interest can endure unforeseen economic changes by fluctuating. b. Simple interest generates more money than any other source of income. c. Simple interest grows more quickly if you invest in it longer. d. Simple interest is very regular and can be calculated in advance.

Your children are 3 and 5 years old now, and you want an inexpensive policy that covers your family at least until the youngest is 22. Based on the given information, what is the best policy to buy? a. Whole life policy b. 10-year term policy c. 15-year term policy d. 20-year term policy

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