Personal Finance Final

Natalie's income statement for the month of October is shown.What is Natalie's net income for the month of October? $930.00 $980.00 $1,930.00 $1,980.00

$1,930.00

Richard's annual college expenses are expected to total $17,745. He will receive $5,320 in grants. How much will Richard need to contribute to his annual college expenses? $11,425 $11,465 $12,425 $12,465

$12,425

The table shows a schedule of the first year of Kamil's payment plan for a car. Kamil's Payment Plan for the First YearYearBalanceMonthly PaymentEnd of YearBalance1$13,086.72$363.52$8,724.48 How many years will it take Kamil to pay off the loan? 1 year 2 years 3 years 4 years

3 years

A person who files bankruptcy ends up paying a 5% higher fixed interest rate on a 25-year home loan than a person who has not filed bankruptcy. The person that does not file bankruptcy pays a 7.5% interest rate. If the loan amount is $160,000, how much more does the person who filed bankruptcy pay in total interest on the home loan than the person who has not filed bankruptcy? a. $168,654.22 b. $562.18 c. $157,073.04 d. $110,878.95

A

Antonio has just graduated from four years of college. For the last two years, he took out a Stafford loan to pay for his tuition. Each loan had a duration of ten years and interest compounded monthly. Antonio will pay each of them back by making monthly payments, starting as he graduates. Antonio's loans are detailed in the table below. Year Loan Amount ($) Interest Rate (%) Subsidized? Junior 5,894 6.9 Y Senior 5,258 7.5 N Once all of his loans are paid off, what will Antonio's total lifetime cost be? Round all dollar values to the nearest cent. a. $16,246.80 b. $17,804.40 c. $7,593.16 d. $9,874.76

A

Since they filed bankruptcy in the past, a couple ends up paying a 12% fixed rate for a 30 year mortgage. With a better credit rating, they could have gotten the loan at a rate of 8%. If their loan amount is $140,000, how much more per month will the couple be paying for their mortgage as a result of their bankruptcy? a. $137,532.67 b. $412.79 c. $1,440.06 d. $260.37

B

The chart below shows one store's sales of computers, listed by model. If the changes in sales between May and June continue at the same rate, how many total computers will be sold in July? a. 534 b. 721 c. 1,019 d. 1,254

B

___________ are debt certificates that are purchased by an investor.

Bonds

A password is 4 characters long and must consist of 3 letters and one number. If letters cannot be repeated and the password must end with a number, how many possibilities are there? a. 175,760 b. 158,184 c. 156,000 d. 140,400

C

Tyrell has a bankruptcy on his credit report and therefore pays higher interest rates on his current loans. He calculates that the extra money he pays in additional interest each year, if invested at the rate of 2.5% for one year, could earn him simple interest totaling $300. How much does Tyrell pay in additional interest each month? a. $90 b. $100 c. $1,000 d. $12,000

C

Quincy listed his assets and liabilities. Cash Rent Stocks Jewelry Student Loan Utilities Which are Quincy's assets? Select three choices.

Cash, Stocks, Jewelry

Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7.96% sales tax, a $2,138 vehicle registration fee, and a $262 documentation fee. Reg's financing has an interest rate of 10.27%, compounded monthly, and a duration of three years. If Reg makes a monthly payment of $773.89, which of the following was his down payment? Round all dollar values to the nearest cent. a. $2,000 b. $2,200 c. $2,500 d. $2,800

D

The following chart shows a store's records of sales of stuffed toys for two months. Which of the following are accurate assessments of trends displayed in this graph? I. Sales of teddy bears decreased by about 2.9% between September and October. II. The change in sales of rabbits is roughly equal to the change in sales of all toys. III. Roughly 24.1% fewer horses were sold in October than in September. a. I and II b. II only c. I and III d. III only

D

The chart describes four people's credit histories. Creditworthy Criteria Name Description of Credit History Ellie Has more debt than earningsCollinPays only some of his bills every monthJacobHas made three late payments in the past yearEeshaPays more than the minimum payment each month Which person is creditworthy?

Eesha

If an individual suspects their identity has been stolen they should report their concerns to the Federal Trade Commission. Please select the best answer from the choices provided T F

T

A refrigerator is priced at $1,250. There are two options offered to reduce the price: either a 25% discount off the price or a rebate of $300. Which is the better choice, and what is the extra amount saved? The 25% discount is better; it saves $12.50 more. The rebate is better; it saves $12.50 more. The 25% discount is better; it saves $75 more. The rebate is better; it saves $75 more.

The 25% discount is better; it saves $12.50 more.

A high-risk investment is characterized by a greater percentage chance of loss. superior prospects for short-term gains. a smaller percentage chance of loss. lower interest and compound interest rates.

a greater percentage chance of loss.

Which are shown on a balance sheet?

assets, liabilities, timeperiod

Through the successful study of personal finance, an individual will be better prepared to calculate financial risks able to spend available assets. faced with long-term challenges. more likely to avoid high opportunity costs.

better prepared to calculate financial risks

Use the following table to help answer the question below. State Single-earner 2-person 3-person 4-person Florida $41,226 $52,259 $58,574 $69,009 Georgia $40,691 $55,258 $61,104 $68,502 Missouri $39,645 $51,568 $60,371 $71,059 Texas $38,940 $55,859 $59,222 $66,381 Virginia $48,362 $65,122 $74,151 $85,939 A family of 2 that has a monthly income of $4,650 is thinking about filing bankruptcy. In order to file for Chapter 7 bankruptcy, in which of the following states could the family be living? a. Georgia or Florida b. Florida or Texas c. Georgia or Virginia d. Virginia or Texas

d. Virginia or Texas

In which category do commodities belong? long-term investment only short-term investment only either short- or long-term investment neither short- nor long-term investment

either short- or long-term investment

One way to revise a budget to meet long-term goals is to ______________ discretionary spending.

limit

Which is a kind of federal payroll tax? medicare tax sales tax property tax progressive tax

medicare tax

This table compares the requirements for a career as an athletic trainer or an air traffic controller. A student who is interested in becoming an air traffic controller will make more money than an athletic trainer but will have a harder time finding a job. more money than an athletic trainer and will have an easier time finding a job. less money than an athletic trainer but will have an easier time finding a job. less money than an athletic trainer and will have a harder time finding a job.

more money than an athletic trainer but will have a harder time finding a job.

Which best describes the purpose of recording past income and spending in a budget? to know the historic cost of goods to serve as the basis for future planning to learn why having savings is important to learn why expenditures are likely to increase

to serve as the basis for future planning