ACR ULTIMATE math

Which of the following investments will earn the smallest amount of interest?

$8,030, invested for 2 years at 2.0% interest

Zoe is a chemistry teacher earning a salary of $38,000 per year. She also tutors part-time, charging $20 per session. Which of the following types of income does Zoe have? I earned income II passive income III capital gains income a. I b. II c. I and II d. I and III

A

HMO

A Health Maintenance Organization, or an HMO, is a type of managed care organization that provides healthcare services from predefined doctors, hospitals, and other providers.

co-payment

A co-payment, or co-pay, is a set amount an insurance policy holder pays to access medical treatment.

deductible

A deductible is the amount that an insurance policy holder must pay in order to receive the benefits of the policy; after which the policy covers any medical expense over the amount of the deductible.

fee-for-service plan

A fee-for-service plan is an insurance plan that pays their share of covered medical services after treatment is provided, once the policy holder has paid the deductable, and any co-pays.

Fixed interest rate

A fixed interest rate is an interest rate that does not change for the life time of the account.

When choosing a bank, why might ATM availability be valuable to someone who values convenience over cost?

A greater availability of ATMs may make it easier to do bank transactions. Someone may choose this availability over a higher savings interest rate.

When might a limited warranty be a better choice than a full warranty?

A limited warranty can be more economical than a full warranty. If the conditions excluded by the limited warranty are either not very expensive or are exceedingly unlikely to ever arise, but you still want to have some protection for your purchase, a limited warranty can be a better deal.

premium

A premium is the amount an individual can be expected to pay for an insurance policy.

rider

A rider is additional insurance that modifies an existing insurance policy to extend its coverage.

Which of the following would be a good reason to place your money into a savings account?

A savings account earns interest

Tax refund

A tax refund is a refund paid to a tax payer when the amount paid in taxes exceeds the amount owed.

Variable interest rate

A variable interest rate is an interest rate that can change over the life time of the account.

Withholding allowance

A withholding allowance is an allowance that can be claimed on a W-4 form, thus reducing the amount paid towards taxes.

A new cell phone has a purchase price of $225. With the extended warranty, the total cost comes to $289. What percent of the purchase price is the price of the warranty?

A.

A set of floor speakers costs $466. If the extended warranty on the speakers costs 32% of the price of the speakers, how much does the extended warranty cost?

A.

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.

Which of the following statements best describes the difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)?

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.

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?

An account earning interest compounded daily

Income tax

An income tax is a taxed levied on the income of individuals by both state and federal officials to pay towards state and federal programs.

Overdraft fee

An overdraft fee is charged to an account when withdrawals from it exceed the available funds and cause a negative balance. This fee is incurred for every transaction that exceeds the available funds.

One possible solution to a diminishing Social Security payroll is to increase the Social Security tax by 1.89%. How would such an increase effect the tax on an annual salary of $54,000?

Annual tax would increase by $1,020.60.

Sherita, age 37, wants to pay no more than $750 a year in life insurance. If the annual life insurance premium rate (per $1,000 of face value) is $3.96, what is the largest 15-year term policy she can buy without spending more than $750 annually?

Answer: A ($189,000)

When must you sign a deposit slip?

B

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?

B. $1,202

In what way is a debit card similar to a check?

Both pull money directly from a checking or savings account.

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.

Budgeting categories are exact, and gifts can fit into only one of them.

Alexa has finished her culinary training program and is now working full-time as a chef in a hotel resort restaurant. She has tripled her salary from when she was working part-time to pay her expenses through school. How should this increased income affect her budget? Make comparisons with her previous budget and her current budget. Monthly Budget Previous Budget Current Budget Income Wages $800 $2400 Expenses Rent Utilities Groceries Savings Bus Pass $300 $60 $200 $100 $30 $300 $60 $250 $150 $30 Net Income $110 $1610 a. Alexa is earning quite a bit more money and her expenses reflect the change in income. b. Alexa is earning quite a bit more money than she was previously. She has worked hard and deserves to spend a lot of money on herself. c. Alexa is earning quite a bit more money than she was previously. This would be a good time for her to re-evaluate her budget. Part of the extra money she is making could be put in her savings account. d. Her increased income should have no effect on her financial decisions.

C

A lawnmower costs $284, and the six-year extended warranty on the lawnmower costs 17% as much as the lawnmower itself. What is the effective price per year of the extended warranty? a. $4.82 b. $3.93 c. $8.05 d. $7.03

C.

A microwave costs $89, with a $17 full-replacement warranty. If the manufacturer sells 475,360 warranties and has to honor 7.5% of them, how much profit did the manufacturer make from the warranties?

C.

Rate the following bank accounts from most to least liquid: CD, savings account, checking account, money market account.

Checking account, savings account, money market account, CD

collision insurance

Collision insurance is a level of insurance that covers the policy holder's personal vehicle.

comprehensive insurance

Comprehensive insurance is a level of insurance that covers the damage or loss of a vehicle due to fire, theft, vandalism, hail, and other causes.

Rex has several hundred thousand dollars to save, and he wants to keep it as safe as possible. What would you recommend Rex do to keep his money safe?

Deposit the money in several banks, not putting too much money in any one.

If you want to increase the amount of monthly savings in your budget, which of the following methods would reasonably be the most effective?

Determine a "Non-Essential Expense", or any other expense, that can be reduced.

Richard has $652 in his account and is planning a road trip. He looks at how expensive hotels and sightseeing costs are in certain cities, planning accordingly: City Cost ($) Detroit 196.87 Pittsburgh 180.32 St. Paul 102.87 Cincinnati 155.81 Richmond 211.86 When Richard makes the calculations, he finds he does not have enough money to visit each city. What is the cheapest city that Richard can drop to avoid overdrawing his account?

Detroit

Explain how filing your tax return online can make payments easier.

Electronic tax returns allow you to make online payments, which are faster and simpler than paying by check. There is no chance of an electronic payment being lost in the mail. Also, electronic filing allows for the file-now-pay-later system, which can make it simpler to budget for any taxes due.

Alberto is making a budget. He owes a cell phone bill of $60 per month for 23 more months, plus the fees for any extra usage such as text messaging or extra minutes. Which of the following is the correct category for this expense?

Essential (flexible) expense

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.

Even with the higher premium, Option 2 covers more of Sammy's health care costs in the event of a serious accident.

If your expenses are more than your income, then you have a positive net cash flow.

F

The rare coin collection your grandmother gave you is part of your liabilities.

F

Which of the following statements accurately describes the result of a decreasing worker-per-beneficiary ratio in the Social Security system?

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.

Jessie wants to open a checking account to pay bills. She wants a starter book of checks, plus free online bill payment services. She analyzes the following statements of fees from Good Bank and Great Bank. Based upon past experience, Jessie expects to accidentally overdraft the account about 3 times per year, unfortunately all in the same month, 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. Based on the tables of fees, which bank can be reasonably expected to cost Jessie the least amount in fees per year?

Good Bank will have the least amount in fees per year.

Briefly describe how maintaining a savings account can contribute to your overall financial well-being.

Having a savings account can contribute to your overall financial well-being by providing you with the security to expect the unexpected, allow you to invest when opportunities arise, provide you with the means to fulfill your dreams, and to give back to your community.

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?

Having a savings account gives individuals the ability to borrow money from members in the community

Social Security offers all but which of the following benefits?

Home loans

How can simple interest make saving money easier?

How can simple interest make saving money easier?

Choose the circumstances in which a debit card can be used. I. Point-of-sales transactions II. ATM withdrawals

I and II

Jan wants to save a $2000 gift from her grandparents, and add $50 per month as emergency funds. She has narrowed her search for a savings account to 2 banks, Bank A and Bank B. Bank A pays a fixed rate of interest, and Bank B pays a variable rate, but both rates are currently the same. What advice would you give Jan about how to choose an account based upon her own needs? I. The fees and services will make a much bigger difference than the type of interest while your balances are small. II. The more that you expect to save, the more you should think about what effect the interest rates might have on your finances. III. Choose the variable rate, because no matter what the fees are, if it goes way up, you could become richer.

I and II

Which of these can be considered "online banking?" I. A brick-and-mortar bank that allows its customers to transfer money online. II. A bank that has only a few branches but has customers depositing money online. III. A bank that does not exist as a real building, but only has an internet presence.

I, II, and III

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:

II and III

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 Anna gets an overdraft fee if her balance at the end of the day is negative. On which day or days does Anna get charged an overdraft fee? I. Wednesday II. Thursday III. Friday

II and III

Which of the following are advantages of certificates of deposit (CDs) over savings accounts?

II only

Which of the following are advantages of certificates of deposit (CDs) over savings accounts? I. CDs are more readily accessible than savings accounts. II. CDs offer greater interest rates than savings accounts. III. CDs have greater FDIC backing than savings accounts.

II only

liability

Liability is the state of being legally obligated or responsible.

Steven is looking at banks for checking and savings accounts. Some offer home loans and others do not. Steven may need a home loan sometime in the next few years. But he wonders if he should really ask what kinds of loans the bank makes, because he is getting a checking account, not a home loan. Which statement below gives the best reason for Steven to consider loan availability in choosing a checking account?

If he needs a home loan in the future, he will have a relationship with the bank.

Social Security

In the U.S, Social Security is a social insurance program created to aid individuals in retirement or those that have become disabled.

Patrick and Susie just welcomed a set of twins to their family and have to decide how to purchase health insurance for the babies. Patrick's employer pays for 100% of his monthly health insurance premium of $378, but will not pay for any of the $280 for each additional beneficiary. Susie's employer, who pays 63% of her $403 monthly premium, offers to pay 32% of the $310 monthly premium for each additional beneficiary. Which would be the most economical way to purchase health insurance for the family?

Insure Patrick with his employer and Susie and the twins with her employer.

Where does the FDIC's reserve fund come from?

Insured banks pay a premium on the money insured.

You are examining your choices of banks to open a new savings account. Costs include monthly maintenance fees and statement copy fees. Income can come from ___________.

Interest on deposits

When calculating simple interest, what must you do if you want to invest for months or weeks instead of years?

Interest rates are annual, so you must convert the units into years.

Which of the following statements best gives the reasons that a data usage bill for a smart phone is an essential (variable) expense?

It is an obligation to pay, but the spender has some control over its amount.

What is the purpose of the Electronic Funds Transfer Act?

It limits your liability if your ATM card is stolen

Mary and Lewis each open a savings account at the same time. Mary invests $3,700 in an account yielding 3.2% simple interest, and Lewis invests $3,000 in an account yielding 5.9% simple interest. After fifteen years, who has the greater total amount of money, and how much greater is it?

Lewis has $179 more than Mary.

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?

Manny forgot to sign the deposit ticket for less cash back

Which of these is not a disadvantage to writing checks.

Many companies do not accept checks.

Which of the following is protected by the FDIC?

Money market accounts

If you were teaching a foreign visitor about checking and savings accounts at banks and credit unions in the USA, which item below would you say consumers of these accounts usually do not have as a protection of their rights?

No automatic fees charged to the account.

Which of the following is an example of a wealth tax? a. income tax b. excise tax c. estate tax d. sales tax

Not A

In the formula I=P·r·t, what does P stand for?

Principal: the amount of money you initially invested

property damage liability

Property damage liability is a level of insurance that covers any damage caused to other people's property, including their vehicle.

As a part-time employee, Rachel does not qualify for any benefits from her current employer. Seeing a need for a health care program, Rachel went shopping for health insurance and is trying to decide between two options with a national health insurance provider. The benefits of each option are outlined in the tables below. The first option is a fee-for-service plan with a $7,500 deductible. Rachel 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. Rachel is a young lady with very few health care requirements. She anticipates one monthly visit to her primary care physician, and one annual visit to her allergy specialist. She has two generic prescription allergy medicines that need to be filled twice a month. If Rachel is able to stay healthy the entire year and does not accrue any additional health care costs, which of the following statements is true for her situation?

Rachel's health care needs will cost less under Option 1 if she is able to avoid additional health care costs.

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?

Ralph's calculation is correct, he will have to pay $9,280 in federal taxes this year.

In the formula I=P·r·t, what does r stand for?

Rate: the percent that interest is paid annually as a decimal

Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?

Reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same.

renters insurance

Renters insurance is insurance that protects the policy holder's belongings from lightning, windstorm or hail, vandalism or theft, damage from vehicles and aircraft, riot, glass breakage, smoke, volcanic eruption, and personal liability.

replacement cost

Replacement cost is the cost of replacing an asset using the present value of the asset to determine reimbursement.

Which of the following statements best describes the difference between sales tax and property tax?

Sales tax is applied to items as they are purchased while property tax is applied to items already owned.

Sandy is trying to reconstruct her spending pattern from July. She knows that she had $277 in her account on July 1, but after that, her receipts and balance statements are all scrambled. Here are Sandy's records: Date Transaction Type Amount ($) 7/26 Purchase 86 7/25 Deposit 76 7/4 Purchase 137 7/6 Deposit 90 7/10 Purchase 131 7/9 Purchase 145 7/15 Deposit 152 7/19 Purchase 137 Assuming that this is a complete, if scrambled, record of Sandy's July spending and that any overdraft fees incurred do not affect the running total, how many times did Sandy overdraw her account in July?

Sandy overdrew her account more than twice.

Opening a savings can provide an individual many conveniences. List and briefly describe the conveniences that are associated with opening a savings account

Savings accounts offer easy access to your money in the event of an emergency, while your money is in a savings account, it can earn interest, allowing your money to grow, and finally keeping your money in a savings account means that your money is safe

What kind of financial institutions does the Office of Thrift Supervision oversee?

Savings and loan institutions

Why is simple interest useful for planning parts of your financial future?

Simple interest is very regular and can be calculated in advance.

Which of the following statements explains the relationship between Social Security and Medicare taxes?

Social Security is applied to all wages up to $106,800. Medicare is applied to all wages without limit.

Which of the following statements explains the relationship between Social Security and Medicare taxes?

Social Security is applied to all wages up to the maximum taxable earnings. Medicare is applied to all wages without limit.

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $35,400.

Social Security tax: $2,194.80, Medicare tax: $513.30

ncua

The National Credit Union Administration or NCUA charters and supervises federal credit unions and insures deposits at federal credit unions and many state credit unions through NCUSIF (National Credit Union Share Insurance Fund).

OTS

The OTS or Office of Thrift Supervision is the primary regulator of all federal, and many state-chartered thrift institutions, including savings banks and savings and loan institutions.

Which of these is not a factor you need to consider when choosing a bank?

The amount of money you paid in income taxes last year

Ian invests $13,670 in a savings account at his local bank which gives 1.9% simple annual interest. He also invests $6,040 in an online savings account which gives 4.5% simple annual interest. After nine years, which one will have earned more interest, and how much more interest will it have earned, to the nearest dollar?

The online account will have earned $109 more interest.

beneficiary

The beneficiary is the person named in the policy to receive the benefits in the event of death.

What are some of the factors to take into consideration when opening a savings account and what information do you need to provide?

The factors we might take into consideration when opening a savings account is how accessible are the banks, the types of services the bank provides, customer services, and what types of rates the bank provides. When opening a savings account, we need to provide legal documentation proving you are who you say you are and to fill out a application

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?

The first bank Macky considered offered a chance to win a prize upon opening an account

Minimum opening balance

The minimum opening balance is the initial dollar amount set by the bank that is required to open a account.

Predict how much money can be saved without having a negative actual net income.

a. It is not possible to save any money this month without having a negative actual net income.

Alissa would like to make a deposit into her savings account. She filled out a deposit ticket and handed it to the teller at her bank. The teller apologizes to Alissa and explains that she cannot accept the deposit ticket in its current form. Determine what, if anything, Alissa will have to change in order for her deposit ticket to be accepted.

The total is calculated incorrectly

Which of the following items may not be a good consideration in selecting a bank?

The word "FREE" is prominently displayed in the marketing pamphlet.

Which statement below gives the best reason for considering personal needs, values, and circumstances in selecting a bank account?

This information can lead to a better match between account features and the person's needs

What is one difference between yearly and monthly 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.

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?

Thursday

umbrella insurance

Umbrella insurance is an insurance policy that protects the value of the insurer's property and earnings beyond the standard limits set by their primary policies.

uninsured/underinsured motorist coverage

Uninsured/underinsured motorist insurance is insurance that protects against damage to the car or injury to persons in the car caused by a driver who are either under insured or not insured.

universal life insurance

Universal life insurance is a whole or permanent life insurance plan that takes part of the premium and invests it into a tax free account.

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?

Use the debit card for a large number of small purchases and check the balance later.

Gift tax falls under which tax category?

Wealth tax

Frank has $66.50 in his account on Sunday. Over the next week, he makes the following changes to his balance via deposits and purchases: Day Debit ($) Credit ($) Monday 60.33 80.75 Tuesday 54.45 --- Wednesday 49.20 15.00 Thursday 35.40 --- Friday 16.85 75.00 Saturday 80.56 --- On what day does Frank first get charged an overdraft fee?

Wednesday

whole life insurance

Whole life insurance is life insurance that insures you for your whole life and is often called permanent, or straight life insurance.

Which of the following is most likely used by a seller to target an impulse buyer?

display

Explain how compound interest is better than simple interest when it comes to saving money.

With compound interest, you earn interest on interest, thereby accumulating more money than if you were earning simple interest

Adam's bank account has a balance of $1213.69 before he starts spending money. He makes the following transactions: Transaction Cost ($) Car payment 260.16 Groceries 97.98 Parking ticket 75.00 DVD box set 115.35 Antique lamp 68.53 Suit 331.84 Adam is considering getting his car a new paint job. Doing so will have a total cost of $264.83. Can Adam afford this?

Yes, but doing so will clear out his account.

Some online banks offer "online bill pay." What does this mean?

You can visit your bank account online and electronically transfer funds to pay your bills.

You have a car that is valued at $12,000. The balance that you owe on the car loan is $7,000. You lose your job and can not afford to make payments on your loan so you sell the car for $9,000 and pay off the loan. Explain how your net worth is affected by your actions.

You have reduced your net worth. Before selling the car, your net worth is $12,000 - $7,000 = $5,000. After selling the car and paying off the loan, it is $2,000.

Which of the following should not be used as a guideline for making a purchase?

You want it.

According to the chart below, what percentage of Ralph's expenses are items other than taxes?

a

After reviewing her driving record for the past 3 years, Cindy's insurance company offers her a good driver discount of 4.5%. Her original policy was based on the premiums listed below. What is her new annual premium including the discount?

a

Ben just purchased a house in an older neighborhood. After talking to several neighbors across the street, he found that he is paying much more in homeowners insurance than other homeowners in the neighborhood. Ben's house is about 30 years old. It is made of wood framing and stucco texture. It has all of it's original plumbing and electrical work. The brick wall at the back of his back yard separates his yard from a drainage wash. Which of the following is not a reasonable argument for the insurance company to use to justify Ben's higher homeowners insurance premium?

a

Between permanent life insurance and term life insurance, which typically has the lower premium and why?

a

Brian is calculating his tax deductions. He finds that he can deduct $1,225 as a result of money given to charity, $4,391 from interest paid on his mortgage, and $2,821 from what he paid in state and local taxes. What is Brian's total deduction?

a

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $35,400.

a

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

a

Consider the following incomplete deposit ticket: 2007-04-04-00-00_files/i0210000.jpg How much cash did Liz receive? Please select the best answer from the choices provided $458.57 $670.71 $323.54 $1,805.32

a

Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following transactions: Transaction Debit ($) Credit ($) Birthday check --- 75.00 Night out 66.14 --- Garage sale proceeds --- 121.58 Charitable donation 42.25 --- Doctor's appointment 115.30 --- At the end of the week, how much money is in Danielle's account? a. $99.91 b. $27.11 c. $184.41 d. $142.16

a

Darius wants to purchase his favorite salad dressing. The salad dressing comes in two different size bottles. The 16 ounce bottle is on sale for $3.36. The 10 ounce bottle is priced at $2.30. Darius has a coupon for 40 cents off if you buy two 10 ounce bottles. Determine if Darius gets the better buy when he buys one 16 ounce bottle or when he buys two 10 ounce bottles. a. Darius will get the same deal on either purchase. b. Darius will get the better deal buying one 16 ounce bottle. c. Darius will get the better deal buying two 10 ounce bottles. d. Darius doesn't need the coupon, he will get the best deal on one 10 ounce bottle

a

Determine the total annual FICA tax for an annual salary of $63,250.

a

Enzel goes online to buy a graphing calculator. He finds a site that currently has a promotion of 15% off on all orders over $50. Enzel decides to buy his graphing calculator, with a price tag of $83, at this site because he knows that he will get the 15% discount when he checks out. Enzel pays 4.5% sales tax on the discounted price and pays a shipping fee of $6.35. What is the total of Enzel's online purchase? a. $80.07 b. $80.36 c. $86.74 d. $93.09

a

Frank has $66.50 in his account on Sunday. Over the next week, he makes the following changes to his balance via deposits and purchases: Day Debit ($) Credit ($) Monday 60.33 80.75 Tuesday 54.45 --- Wednesday 49.20 15.00 Thursday 35.40 --- Friday 16.85 75.00 Saturday 80.56 --- On what day does Frank first get charged an overdraft fee? a. Wednesday b. Thursday c. Friday d. Saturday

a

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

a

Given the following information, determine if one of the brands is a better buy. Brand A: 14 ounces for $44.66 Brand B: 20 ounces for $63.80 a. Both brands cost the same per ounce. b. Brand A is the better buy. c. Brand B is the better buy. d. There is not enough information provided to determine the better buy.

a

Health insurance helps to protect you from financial loss by _____.

a

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.

a

Henry is up for retirement after 35 long years at his pharmacy. Before retiring, he would like to know how much he would receive each month from Social Security if he were to retire. During his 35 years, Henry averaged an annual salary of $45,620. Assuming he would recieve 42% of his annual average each year, how much can Henry expect to receive from Social Security on a monthly basis?

a

How can sales tax alter the size of the tip you leave at a restaurant? a. A tip of a given percentage (such as a 20% tip) will be larger if calculated after tax than if calculated before tax. b. The tip becomes part of the bill as a whole, so you have to increase the sales tax by a corresponding amount. c. You do not have to double-calculate a percentage on any purchases, so you should pay for tax or a tip but not both. d. A standard tip is 15% to 20% of the sales tax.

a

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

In addition to general medical services, Holly would like to add dental and vision options to her health care plan. The monthly premium for her medical insurance is $345 of which her employer pays 65%. Her employer also offers to pay 50% of the monthly dental premium of $38 and 75% of the $23 monthly premium for the vision plan that is offered. If Holly opts for both the dental and vision options in addition to her regular health insurance, what will her total monthly premium be?

a

In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change?

a

In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below. Leroux Health Insurance Plan A Proposed Changes Cost: Monthly Premium: $248.00 $203.00 Annual Deductible: $ 5,500.00 $8,500.00 Co-pays: Brand-name Prescriptions $35.00 $30.00 Generic Prescriptions $15.00 $10.00 Visits: Primary Care Physician: $40.00 $30.00 Specialist: $60.00 $45.00 Urgent Care: $125.00 $90.00 Emergency Room: $325.00 $250.00 If Kevin is currently insured under Leroux for his medical insurance under Plan A, how will the proposed changes affect his health care costs?

a

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.

a

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.

a

Mario spent a total of $87.33 last week, but did not keep a perfect record of where his money went. Fortunately, Mario does have all but one of his receipts. He enters all of the information he has into his expense spreadsheet as shown below. 2007-03-03-00-00_files/i0110000.jpg How much did Mario spend on golfing? a. $35.20 b. $45.20 c. $47.88 d. $143.96

a

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.

a

On your property tax bill, you see the following table. Destination Share of Your Taxes Roads $241 Schools $896 Public Safety $154 Township $177 What percentage of your taxes went to funding public safety?

a

One possible solution to a diminishing Social Security payroll is to increase the Social Security tax by 1.89%. How would such an increase effect the tax on an annual salary of $54,000?

a

Pablo wants to start a savings account and apply for a vehicle loan. He's not sure which bank he should open the savings account with and which bank he should apply for the vehicle loan. He wants the most return on his money in savings, but he doesn't want a high rate on his vehicle loan. Given this information and the tables below, determine with which bank Pablo should open his savings account and with which bank he should apply for a vehicle loan. 2007-04-04-00-00_files/i0100000.jpg2007-04-04-00-00_files/i0100001.jpg a. Bank B for the car loan and Bank B for the savings account b. Bank B for the car loan and Bank C for the savings account c. Bank C for the car loan and Bank A for the savings account d. Bank A for the car loan and Bank C for the savings account

a

Paul has decided to set up his own recording studio. He needs to purchase four speakers at $435 apiece and two mixers at $772 apiece. He also needs to soundproof a room, which will cost him $838. If Paul has $4,500 in his savings account, how close can he come to setting up his studio? a. Paul can set up his studio and have $378 left over. b. Paul can set up his studio and have $410 left over. c. Paul needs an additional $1,166 to set up his studio. d. Paul needs an additional $296 to set up his studio.

a

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.

a

Rachel invested $15,000 in a nine-year CD giving 8.5% interest, but needed to withdraw $4,000 after two years. If the CD's penalty for withdrawal was six months' worth of interest on the amount withdrawn, how much money did Rachel have when the CD reached maturity, not including the amount she withdrew? Round answer to the nearest whole dollar. a. $19,925 b. $8,795 c. $19,795 d. $12,965

a

Rachel just purchased a homeowners insurance policy for her new home that costs $0.43 per $100. Her home is worth $387,500. What is Rachel's annual homeowners insurance premium?

a

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

Tony invested $5,500 in a four-year CD that paid 4.8% interest, but later needed to withdraw $475 early. If the CD's penalty for early withdrawal was three months' worth of interest on the amount withdrawn, how much of a penalty did Tony pay? a. $5.70 b. $22.80 c. $60.30 d. $66.00

a

Tracy was involved in an accident in which the other driver suffered severe injuries. The police determined that the accident was Tracy's fault. Tracy is fully insured through her insurance company. Which of the following components of Tracy's insurance policy will cover the injuries of the other driver?

a

Using the following prices, calculate the unit price to determine how much it would cost for 7 granola bars and 9 bottles of water. $7.14 for 6 granola bars $8.72 for 8 bottles of water a. $18.14 b. $18.63 c. $21.41 d. $31.72

a

Using the following prices, calculate the unit price to determine how much it would cost for 7 muffins and 14 juice boxes. $7.74 for 6 muffins $5.52 for 8 juice boxes a. $18.69 b. $19.89 c. $21.91 d. $26.52

a

What does it mean for a savings account to have a minimum balance?

a

What does it mean for a savings account to have a minimum balance? a. If you do not keep at least that much money in the account, you will be assessed fees. b. If the amount of money you have in the account drops below the minimum, the interest rate will increase to replenish your savings to the minimum. c. You must have the minimum amount of money in a separate account before you are allowed to open a savings account. d. You must deposit that much money into the account every month or your account will be closed.

a

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

a

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

a

Which of the following health care programs will wait to pay their share of medical coverage until after treatment is provided?

a

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

a

Which of the following is used by a seller to deceive a buyer? a. bait and switch b. contest c. display d. introductory offer

a

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.

a

Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan

a

Why do certificates of deposit tend to offer better interest rates than money market accounts? a. Certificates of deposit involve a longer time commitment than money market accounts, so they carry a greater return. b. Certificates of deposit are only available to the bank's most proven and valuable customers, so the bank can afford to give a greater interest rate on them. c. They do not offer a better interest rate. Money market accounts tend to have the best interest rates of any bank deposit. d. Money market accounts invest your money but sometimes lose some of it, so the lower interest rate pays for the difference.

a

You own a house and land with an assessed value of $55,580. Every year, you pay a total of $2,834.58 in property taxes. What is your local property tax rate?

a

you make $443 per week, and have claimed five exemptions. How much money will be withheld from you in a year?

a

Consider the following incomplete deposit ticket.

a ($1,145.39)

A toaster oven costing $130 offers an extended warranty for 25% of the purchase price. If the local repair shop will fix a toaster oven for $8, how many times must the toaster oven break in order for the warranty to pay for itself? a. five b. six c. four d. one

a.

Because Aaron, age 32, is a smoker, he must pay more for life insurance. Given that Company A charges 20% more for smokers, Company B charges 18% more for smokers, Company C charge 25% more for smokers and Company D charges 15% more for smokers, Aaron decides to buy his $250,000 policy from Company B. Which of the following statements is true?

a.

Tamara earns $8 an hour at her job working 25 hours per week. If 22% of her paycheck goes to taxes, what is Tamara's monthly cash inflow? (Assume this is her only source of income and that there are 4 pays per month.) a. $176 b. $624 c. $778 d. $800

b. $624

In auto insurance, a higher deductible means the customer _____.

b

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?

b

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.

b

What is the difference between a co-payment and co-insurance?

b

Robert and Anne, a married couple filing jointly, have an adjusted gross income of $68,676. They claim two exemptions, and can deduct $3,752 for charitable donations, $3,375 for interest on their mortgage, and $959 from city income tax. If the standard deduction for a married couple filing jointly is $8,350 and exemptions are worth $3,650 apiece, what is their total taxable income?

b

Most U.S. workers and their families receive their health care plan through their employer because _____?

d

Which of the following is considered a purchase tax?

not c

Wendy is calculating her tax deductions. She finds that she can deduct $5,522 from medical expenses, $7,240 from charitable donations, and $2,126 from property taxes. What is Wendy's total deduction

d

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

d

What is the difference between a full warranty and a limited warranty?

d.

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. Using the table, find the difference in total premium costs over 20 years for this policy at the two age levels.

c.

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?

rose has $230.80 more than dennis

fdic

the FDIC or Federal Deposit Insurance Corporation supervises state-chartered banks that are not members of the Federal Reserve System (Fed), and insures deposits at banks and savings and loans.

FED

the Fed or Federal Reserve System supervises state-chartered banks that are members of the Federal Reserve System.

occ

the OCC or Office of the Comptroller of the Currency charters and supervises national banks. If the word 'national' appears in the name of a bank, or the initials "NA' follow its name, the OCC oversees its operations.

Create an example of a situation where there is a negative cash flow.

the cash inflow should be less than the cash outflow.

Which of the following is something that should not be a consideration when choosing a health care plan?

the coverage the insured individual and family already receive in auto insurance

Which of the following government agencies does not regulate banking or financial markets?

the fcc

Social Security and Personal Income tax are called Payroll taxes because _____.

they are automatically deducted from payroll.

Choose the proper rationale. "In the compound interest equation, time (the variable t) has the biggest effect on the outcome because..."

time is an exponent while the other units are factors

A point of sale transaction occurs when an ATM withdrawal is made.

true

savings accounts are a reliable way to store money for the future.

true

Create an example of a situation where there is a negative cash flow.

when a company spends more money than they make

If the NCUA charges 6.3 cents per 100 dollars insured and Credit Union L pays $8,445 in NCUA insurance premiums, approximately how much is in Credit Union L's insured deposits?

$13.4 million

If the NCUA pays $1.92 billion to cover several failed credit unions, and doing so drains its reserve fund by 8.42%, approximately how much was in the fund to begin with?

$22.8 billion

Ike invests $7,660 in an account paying 7.27% simple interest annually. How much interest has Ike gained after four years?

$2227.53

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?

$23,377

Katherine invests $7,770 in a six-month money market account giving 5.8% simple annual interest and $12,500 in a three-year CD giving 7.25% simple annual interest. Assuming that Katherine does not reinvest or renew these investments, how much money will she have when both investments reach maturity, to the nearest dollar

$23214

Bob's bank charges him a $3.15 service fee every time he uses an out-of-network ATM. If Bob uses an out-of-network ATM an average of three times every two weeks, how much will he pay in service fees over the course of a year?

$245.70

A single person earns a gross biweekly salary of $780 and claims 6 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.

A

ots

OTS The OTS or Office of Thrift Supervision is the primary regulator of all federal, and many state-chartered thrift institutions, including savings banks and savings and loan institutions.

Look at the withholding table below. If you earn $426 in gross income every week and get to keep $348 of it after tax withholding, how many allowances have you claimed?

One

Select the correct statement and rationale relating the interest rates of online banks to those of traditional banks.

Online banks offer greater interest rates than traditional banks because they have lower overhead costs

Select the correct statement and rationale relating the interest rates of online banks to those of traditional banks.

Online banks offer greater interest rates than traditional banks because they have lower overhead costs.

Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan?

PPO insurance plans offer a wider choice of primary care doctors and specialists.

Paul has decided to set up his own recording studio. He needs to purchase four speakers at $435 apiece and two mixers at $772 apiece. He also needs to soundproof a room, which will cost him $838. If Paul has $4,500 in his savings account, how close can he come to setting up his studio?

Paul can set up his studio and have $378 left over.

Payroll tax

Payroll tax is a tax imposed on an employee's wage or salary in the form of Social Security and Personal Income taxes to pay for federal or state programs.

Porsha calculates the amount of money she will have at the end of 6 years on a $5,000 investment earning 3.75% interest compounded quarterly. She writes the following expression: 2007-04-06-00-00_files/i0210000.jpg

Porsha's expression should have 1 + 0.009375 in the parentheses.

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

Based on his salary, Kevin knows that he will have $336.00 withheld from his paycheck for federal income tax. He would like to have approximately $70.00 withheld for state income tax. Which of the following withholding options should he choose for state income tax?

b

Below is a graph of the Murphys' annual expenses. How much will the Murphys' pay in state/local taxes if their gross annual household income is $85,420?

b

Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is $50,760. Assuming that he will recieve 42% of his average annual salary, what will be his annual Social Security benefit?

b

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?

b

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

b

Consider the following incomplete deposit ticket: 2007-04-04-00-00_files/i0240000.jpg What was Art's total deposit? a. $1,701.23 b. $1,545.83 c. $1,856.63

b

Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings.

b

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

b

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.

b

Evelyn spent the day shopping and made the following purchases: Item Cost ($) Camera 66.31 Hat 13.44 Parking 8.00 Planner 9.78 When Evelyn was done, she checked her account balance and found she had a total of $208.16. How much money was in Evelyn's account to begin with? a. $110.63 b. $305.69 c. $315.47 d. $97.53

b

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?

b

Greg invests $2,680 in a CD paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. How much more interest will the CD have earned than the savings account after 1 year? a. $25.90 b. $49.90 c. $380.00 d. $499.00

b

Greg just purchased a house for $450,000. His annual homeowners insurance premium is $0.42 per $100 of value. If his annual premium is divided into equal monthly payments, what will Greg have to pay on a monthly basis to keep his home insured?

b

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

b

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?

b

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

b

In an effort to reduce cost on auto insurance, Sophia has lowered each component of her current plan to the cheapest possible option. Sophia's current insurance agency is Fret-No-More Auto Insurance, whose policy options are listed below. The annual premium for Sophia's current policy is $511.31. What decrease in her annual premium will Sophia see after the change?

b

In many cases, lenders allow homeowners to included their homeowners insurance premium with their monthly mortgage payment. Tim's home is worth $279,500. If his homeowners insurance premium is $0.33 per $100, how much is added to his monthly mortgage payment for insurance?

b

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.

b

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

b

Isabelle has $84.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 22.35 --- Tuesday 47.60 10.29 Wednesday 15.44 --- Thursday 11.25 --- Friday 9.78 22.69 Saturday 30.54 18.86 On which day or days does Isabelle get charged an overdraft fee? I. Thursday II. Friday III. Saturday a. I only b. I and III c. II and III d. III only

b

Julien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Which component of Julien's insurance plan will cover the damage he caused to the other car?

b

Look at the following financial ledger: 2007-03-03-00-00_files/i0230000.jpg Which items listed on the ledger represent credits? a. Credit bill and craft fair b. Gift and online auction c. Gift and insurance payment d. Online auction and craft fair

b

Mauro just won $1,000,000 from the lottery! Despite his excitement in winning a tremendous amount of money, his brother (who is an accountant) warns him not to spend it all at once and hands him this tax rate schedule for single taxpayers. Taxable Income Federal Tax $0-$7,825 10% of amount $7825.01-$31,850 $725.50 plus 15% of amount over 7,825 $31,850.01-$77,100 $4,386.25 plus 25% of amount over 31,850 $77,100.01-$160,850 $15,698.75 plus 28% of amount over 77,100 $160,850.01-$349,700 $39,148.75 plus 33% of the amount over 160,850 $349,700.01 and up $101,469.25 plus 35% of amount over 349,700 Using this chart, a taxpayer who makes $58,000 annually (line 3) will have to pay $4,386.25 plus 25% of the differene of 58,000 and 31,850 or 4,386.25 + (0.25)(58,000-31,850) = $10,923.75. Before winning the lottery, Mauro's annual income was $34,500. Use the chart to determine Mauro's federal tax before winning the lottery and after winning the lottery. How much extra does he have to pay in federal taxes because he won the lottery?

b

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

b

Muriel has kept track of her income and expenses for the week in the spreadsheet below. How much was Muriel's restaurant bill? 2007-03-03-00-00_files/i0150000.jpg a. $17.66 b. $42.55 c. $6.35 d. $112.55

b

On his way out to meet a friend for lunch, David realized that his financial record was not up to date. He notices that he forgot to record three transactions. The first transaction was on August 2nd in the amount of $12.32, another transaction on that same day in the amount or $52.34, and finally a transaction on August 8th in the amount of $85.35. Determine David's balance carried forward for the 8th of August using the table below and the information provided. 2007-04-04-00-00_files/i0080000.jpg a. $975.32 b. $899.15 c. $1,049.16 d. $848.84

b

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?

b

Richard has $652 in his account and is planning a road trip. He looks at how expensive hotels and sightseeing costs are in certain cities, planning accordingly: City Cost ($) Detroit 196.87 Pittsburgh 180.32 St. Paul 102.87 Cincinnati 155.81 Richmond 211.86 When Richard makes the calculations, he finds he does not have enough money to visit each city. What is the cheapest city that Richard can drop to avoid overdrawing his account? a. Richmond b. Detroit c. Pittsburgh d. Cincinnati

b

Auto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance policy through AA Auto Insurance with the following options? Bodily Injury: $25/50,000 Property Damage: $25,000 Collision: $250 deductible Comprehensive: $100 deductible

c.

Determine the total annual FICA tax for an annual salary of $63,250.

a. $4,838.63

Say that you own property with a market price of $74,000. The state tax assessors have given it an assessed value of 48% of that amount. If your state's property tax rate is 0.031, how much do you owe in property tax, to the nearest dollar?

$1,101

Consider the following incomplete deposit ticket: What was Art's total deposit?

$1,545.83

Henry is up for retirement after 35 long years at his pharmacy. Before retiring, he would like to know how much he would receive each month from Social Security if he were to retire. During his 35 years, Henry averaged an annual salary of $45,620. Assuming he would recieve 42% of his annual average each year, how much can Henry expect to receive from Social Security on a monthly basis?

$1,596.70

Which of the following investments will earn the greatest amount of interest?

$1,600 invested for 8 years at 3.0% interest

Ian's house and land have a market price of $225,000 and an assessed value of 55% of that amount. His state has a property tax rate of 0.088. How much does Ian pay in property tax every year?

$10,890

Sally's employer pays for 38% of her annual health insurance premium of $4,350.00. Sally pays the remaining balance by having it deducted in equal amounts from her 26 paychecks throughout the calendar year. How much will Sally have deducted from each paycheck?

$103.73

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?

$104

Consider the following incomplete deposit ticket: What was the value of the third check Tony deposited?

$105.20

Lakisha just won some money in a sweepstakes drawing. She is considering putting her winnings in a long term investment. To the nearest dollar, how much money would Lakisha need to put into an account earning 5% interest compounded annually in order to have $30,000 at the end of 20 years?

$11,307

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?

$11,820

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?

$11,964.17

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.

$112.16

Cameron has decided to diversify his investments in the following way: $3,000 in an account earning 2.7% simple interest $5,000 in a savings account earning 1.8% interest compounded annually $5,000 in a certificate of deposit earning 3.9% interest compounded quarterly

$1135.30

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

$11820

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?

$119.32

Kathy makes $66,000 per year, and she pays a net federal income tax rate of 18.85%. How much should Kathy expect to pay in taxes every year

$12,441

Kathy makes $66,000 per year, and she pays a net federal income tax rate of 18.85%. How much should Kathy expect to pay in taxes every year?

$12,441

An investment of $1,000 is earning interest at the rate of 3.8% compounded daily over 3 years. Approximately how much interest is earned on the investment?

$120.75

If Mary's taxable income is $68,562, how much income tax does she owe, rounded to the nearest dollar?

$13,564

Abigail has an account that pays 6.92% simple interest per year and wants to accumulate $5,896 in interest from this account over six years. How much money should Abigail invest in this account to meet this goal?

$14200.39

In addition to general medical services, Holly would like to add dental and vision options to her health care plan. The monthly premium for her medical insurance is $345 of which her employer pays 65%. Her employer also offers to pay 50% of the monthly dental premium of $38 and 75% of the $23 monthly premium for the vision plan that is offered. If Holly opts for both the dental and vision options in addition to her regular health insurance, what will her total monthly premium be?

$145.50

Selena purchased some gifts for her nieces and nephews online. She bought 3 dolls each priced at $19.99 each and 4 remote control cars priced at $21.99 each. Selena was able to get an online coupon for $3 off on each remote control car that she purchased. There was no sales tax, but the shipping charge was $10.50. What was the total amount Selena paid for her online purchase?

$146.43

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?

$150 per month

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

$151.49

David's salary totals $79,000 per year. He can expect to pay federal income tax at a rate of 23.60%. How much money will David pay in federal income taxes every year?

$18,644

If the NCUA charges 3.3 cents per 100 dollars insured and Credit Union M pays $5,995 in NCUA insurance premiums, approximately how much is in Credit Union M's insured deposits?

$18.2 million

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

$189.4

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?

$189.42

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.)

$19,153.26

If Carol's taxable income is $89,786, how much income tax does she owe, to the nearest dollar?

$19,636

Yolanda used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it does not. Yolanda wants to first look for a single transaction that could have caused this problem with reconciliation. What is the amount of the transaction that Yolanda should look for in order to find a solution to the problem?

$19.99

Agnes pays state income tax equal to 3.75% of her federal taxable income. She pays federal income tax equal to 28.4% of her federal taxable income. This year, she paid $15,449.60 in federal income tax. How much did Agnes pay in state income tax?

$2,040.00

You make $443 per week, and have claimed five exemptions. How much money will be withheld from you in a year?

$2,392

Abby lives in a state in which the state income tax rate is equal to 5.38% of federal taxable income. Abby's federal income tax is equal to 19.6% of her federal taxable income. If Abby owes $8,880.17 in federal income tax, how much does she owe in state income tax?

$2,437.52

You have a home with a market value of $144,700, which has an assessment value of 72% of that amount. Your city has a property tax rate of 0.039. You know that 65% of your property tax dollars go to public schools. To the nearest dollar, how much of your taxes went to funding schools?

$2,641

Tina lives in a state that charges her 4.5% state income tax on her federal taxable income. If her federal taxable income is $61,600, how much does Tina pay in state income tax?

$2,772

Determine the total annual FICA tax for an annual salary of $38,480.

$2,943.72

How much money would need to be deposited into an account earning 5.25% interest compounded annually in order for the accumulated value at the end of 25 years to be $75,000?

$20,869.34

Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is $50,760. Assuming that he will receive 42% of his average annual salary, what will be his annual Social Security benefit?

$21,319.20

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?

$2507.90

If the NCUA pays $1.36 billion to cover several failed credit unions, and doing so drains its reserve fund by 5.18%, approximately how much was in the fund to begin with?

$26.3 billion

Ted is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Ted's spending pattern: Day Debit ($) Credit ($) Monday 112 --- Tuesday 141 18 Wednesday 56 --- Thursday 28 70 Friday 22 42 Saturday 16 88 If the bank charges Ted an overdraft fee of $25 every time he overdraws his account, and Ted overdrew his account on Wednesday but not on Friday, which of the following is a possible amount of money that Ted could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees.

$280

In 2007, the FDIC's insurance limit was $100,000 per person per bank. At that time, if Kit had three separate $50,000 CDs at Bank R, a $60,000 checking account and a $140,000 money market account at Bank S, and an $80,000 savings account at Bank T, how much of Kit's money was FDIC insured?

$280,000

Say that you pay property taxes of $2458.20 every year. If your state has a property tax rate of 0.082, what is the assessed value of your property?

$29,978

In 2007, the FDIC's insurance limit was $100,000 per person per bank. If Sam had a $150,000 savings account and $80,000 checking account at Bank J, a $95,000 money market account at Bank K, and a $200,000 savings account at Bank L, how much of Sam's money was FDIC insured?

$295,000

Nicole deposits $2,136 in a savings account paying 5.36% interest. To the nearest dollar, how much money does Nicole have in total after nine years?

$3,166

Evelyn spent the day shopping and made the following purchases: Item Cost ($) Camera 66.31 Hat 13.44 Parking 8.00 Planner 9.78 When Evelyn was done, she checked her account balance and found she had a total of $208.16. How much money was in Evelyn's account to begin with?

$305.69

Henry and Walter open savings accounts at the same time. Henry invests $6,500 at 4.54% simple interest, and Walter invests $7,100 at 4.74% simple interest. After eight years, how much more interest has Walter earned than Henry?

$331.52

You earn $1,166 gross taxable income every week, and have claimed no exemptions. Assuming that you have no other sources of income, what is the amount of income tax withheld each week?

$340

This year, you owed $6,414.95 in federal income tax. If you are taxed at a net rate of 17%, what was your taxable income for this year?

$37,735

Bridget purchased 3 pairs of shoes online. The total bill of $126.81 included a $7.50 shipping charge and 6% tax on the total purchase. If the shoes that Bridget purchased were all priced the same, how much did each pair of shoes cost?

$37.52

The health care Jimmy's employer offers is a fee-for-service plan in which Jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. Jimmy and his family have several health related issues that demand $685.00 each month. If one of Jimmy's children were to become seriously injured at the end of the year, how much would the related health costs need to be in order for the insurance company to assume responsibility?

$4,280.00

If the FDIC charges Bank D 6.1 cents per 100 dollars insured, how much must Bank D pay to insure $7.3 million in deposits?

$4,453

Billy's employer pays for 65% of his annual health insurance premium. Billy has the rest deducted in equal amounts from his paycheck. If Billy has $105.73 withheld from his paychecks twice each month, how much does his employer contribute towards his health insurance on an annual basis?

$4,712.54

Determine the total annual FICA tax for an annual salary of $63,250.

$4,838.63

Mark lives in a state that charges him 6.1% income tax on his federal taxable income. If his federal taxable income is $79,400, how much does Mark pay in state income tax?

$4,843.40

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?

$4,926

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?

$4250

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?

$427.31

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.

$432.97

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.

$435

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?

$4926

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: 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:

$5,136; approximately 24 months

Tony invested $5,500 in a four-year CD that paid 4.8% interest, but later needed to withdraw $475 early. If the CD's penalty for early withdrawal was three months' worth of interest on the amount withdrawn, how much of a penalty did Tony pay?

$5.70

Sam invests $9,400 in a fund yielding 5.2% simple interest annually. At the same time, Pat shops around for a better interest rate and invests $9,400 in a fund yielding 6.0% simple interest annually. After seven years, how much more interest has Pat's fund earned than Sam's fund?

$526.40

If your state has a property tax rate of 0.056, and you pay $3,164.45 in property taxes every year, what is the assessed value of your property?

$56,508

If the FDIC has a $59.5 billion insurance fund and must use 5.6% of it to cover several failed banks, approximately how much money is left in the fund?

$56.17 billion

An investment of $8,350 earns 5.2% interest compounded monthly over 10 years. Approximately how much interest is earned on the investment?

$5679

A principal of $4,570 is placed in an account that earns 4.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 5 years?

$5695.05

Liam has purchased a fee-for-service health insurance plan from Leroux Health Insurance. Plan A includes a $248.00 monthly premium and an annual deductible of $5,500.00 (not including co-pays). Liam is a fairly healthy young man. He visits his primary care physician three times a year on scheduled visits. He sees a chiropractic specialist every week to help with lower back pain. He has no current prescriptions that need refilling regularly. Assuming Liam maintains his regular visits with his primary care physician and his chiropractor, and avoids any trips to the emergency room or urgent care, how much will Liam pay in health care related fees this year?

$6,216.00

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?

$6,256.88

If 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:

$6,621.60

Knowing that 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:

$6,621.60

Javier's employer pays for 43% of his annual health insurance premium. Javier pays the remaining balance by having it deducted from his paychecks in equal amounts twice a month throughout the year. If $157.38 is deducted from each of Javier's paychecks, what is his total annual premium?

$6,626.53

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?

$6,984

A principal of $5,350 is placed in an account that earns 3.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 4 years?

$6139.25

Andrew is insured by Leroux Health Insurance under Plan A. The plan includes a $248.00 monthly premium with a $5,500.00 annual deductible (not including co-pays). Andrew is severely asthmatic. He visits his primary care physician twice a month and his asthma specialist once a month. He has two separate generic inhalers that need to be refilled on a weekly basis. To make matters worse, Andrew has recently been diagnosed with appendicitis and is scheduled to have his appendix removed in the morning. The procedure will cost about $1,500. Considering his frequent doctor visits, many prescription refills, and his appendix removal in addition to his monthly premium, how much will Andrew pay in health care related fees this year?

$7,716.00

Iris has an investment worth $8,813. She made her only deposit in it seven years ago. Given that the investment yields 3.7% simple interest annually, how big was the initial deposit?

$7000

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?

$720.37

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?

$74

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?

$78

Angelo purchased some gifts for his younger brothers and sisters online. He bought a dollhouse for $32.59, 2 board games for $12.95 each and 2 movies for $9.99 each. The web site had a promotional offer of $5 off and no shipping fees for any purchase totaling at least $50. Angelo was charged 7.25% tax on his total purchase. How much did Angelo pay for his online purchase?

$78.80

Determine the total annual FICA tax for an annual salary of $110,330.

$8,221.39

An investment of $6,530 earns interest at the rate of 4% and is compounded quarterly. What is the accumulated value of the investment at the end of 8 years?

$8,978.36

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?

$85.35

Gina invests $1,677 in an account paying 8.61% simple interest annually. How much interest has Gina gained after six years?

$866.34

Yolanda makes $1,196 gross income per week and has claimed two allowances. According to the table below, what is Yolanda's weekly net income after tax withholding?

$879

Consider the following incomplete deposit slip: How much cash did the person who filled out this deposit slip receive?

$88.79

Determine the total annual FICA tax for an annual salary of $165,000.

$9,014.10

Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings.

$9,014.10

Orlando invested $16,000 in an eight-year CD bearing 6.5% interest, but needed to withdraw $3,500 after five years. If the CD's penalty for early withdrawal was one year's worth of interest on the amount withdrawn, when the CD reached maturity, how much less money did Orlando earn total than if he had not made his early withdrawal?

$910.00

Jennifer is excited to be retiring after 35 years of service as a high school English teacher. Over the past 35 years, Jennifer's average annual salary was $26,443. How much can Jennifer expect to receive on a MONTHLY basis from Social Security, assuming she will receive 42% of her average annually?

$925.51

Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following transactions: Transaction Debit ($) Credit ($) Birthday check --- 75.00 Night out 66.14 --- Garage sale proceeds --- 121.58 Charitable donation 42.25 --- Doctor's appointment 115.30 --- At the end of the week, how much money is in Danielle's account?

$99.91

For each of the following wages, determine the Social Security tax that would be withheld. Use $106,800 for maximum taxable earnings.

(D) i. $1,466.92 ii. $5,518.00 iii. $6,621.60

If you wish to calculate the interest on an investment with a rate of 3.58%, what number will you plug into your equation?

0.0358

You own a house and land with an assessed value of $55,580. Every year, you pay a total of $2,834.58 in property taxes. What is your local property tax rate?

0.051

If you wish to calculate the interest on an investment with a rate of 6.17%, what number will you plug into your equation?

0.0617

Assume that you pay $2,849.84 in state property taxes every year. If your property has an assessed value of $41,302, what is your state's property tax rate

0.069

Assume that you pay $2,849.84 in state property taxes every year. If your property has an assessed value of $41,302, what is your state's property tax rate?

0.069 or 6.9%

Downtown Bank offers a checking account. The bank charges a fee for overdrafts, monthly maintenance for balances below $300, out-of-network ATM withdrawals, and more than three money transfers in a month. What are three things you can do to avoid fees from a Downtown Bank checking account?

1. Always keep more than $300 in your account. 2. Always keep track of your balance 3. Avoid making out-of-network ATM withdrawls. 4. Avoid making more than three money transfers each month.

What percentage of your taxes went to funding public safety?

10.49%

Andrew earns $45,300 in taxable income annually, and pays federal income taxes of $5,345.40. What is Andrew's net federal income tax rate?

11.8%

If the NCUA charges 6.3 cents per 100 dollars insured and Credit Union L pays $8,445 in NCUA insurance premiums, approximately how much is in Credit Union L's insured deposits?

13.4 million

Gareth has $2,000 to invest. Putting the money in a savings account at his local bank will earn him 2.2% annual interest and gives him the ability to make ATM withdrawals from that bank's ATMs. Putting the money in an online savings account will earn him 4.85% annual interest, but he will be charged $3 every time he makes an ATM withdrawal. Assuming that Gareth's ATM withdrawals do not affect the amount of interest he earns, roughly how many ATM withdrawals must Gareth make every year for the local savings account to be a better deal than the online savings account?

18

Rachel invested $15,000 in a nine-year CD giving 8.5% interest, but needed to withdraw $4,000 after two years. If the CD's penalty for withdrawal was six months' worth of interest on the amount withdrawn, how much money did Rachel have when the CD reached maturity, not including the amount she withdrew? Round answer to the nearest whole dollar.

19,925

1a) Calculate how much Cindy will have to pay in Social Security tax (6.2%) based on this salary. 1b) Calculate how much Cindy will have to pay in Social Security tax if the tax was increased by 1.89%. 2a) Calculate Cindy's annual Social Security benefit (about 42%) if her salary remains unchanged until she retires (annual average is $45,000). 2b) Calculate Cindy's annual Social Security benefit if her salary remains unchanged but benefits (based on her annual salary of $45,000) were cut from 42% to 29%. 3) If Cindy were given a choice between the increase in Social Security tax now or the decrease in Social Security benefits when she retires, which would you recommend she choose? Explain your answer thoroughly.

1a) $45,000 * 0.062 = $2,790 1b) 6.2% + 1.89% = 8.09%; $45,000 * 0.0809 = $3640.50 2a) $45,000 * 0.42 = $18,900 2b) 42% - 13% = 29% $45,000 * 0.029 = $13,050 3) You should probably recommend she pay the extra taxes now. If the tax were increased by 1.89%. Cindy would have to pay an extra $3640.50 - $2,790 = $850.50 per year for the 32 years before she retires. This adds up to $27,216 over the length of 32 years. On the other hand, if benefits were decreased from 42% of her salary to 29% of her salary the time of Cindy's retirement (approximations), she would receive $18,900 - $13,050 = $5,850 less per year after she retires. This adds up to $58,500 in just 10 years.

You have $10,000 to invest and want to keep your money invested for 10 years. You are considering the following investment options. Choose the investment option that will earn you the most money

2.975% compounded quarterly

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?

20 years

Arthur's yearly taxable income totals $116,600, and he pays $30,910.66 in federal income tax every year. Approximately what is Arthur's net federal income tax rate?

26.5%

Arthur has $19,500 to invest, and wishes to gain $8,000 in interest over eleven years. Approximately what is the minimum simple interest rate that Arthur needs to achieve his goal?

3.72%

The chart below summarizes Ralph's annual expenses for the upcoming year. Based on the information in the graph, approximately what percent of his total budget will be for federal taxes?

30%

Nicole deposits $2,136 in a savings account paying 5.36% interest. To the nearest dollar, how much money does Nicole have in total after nine years?

3166

if you invest $8,600 at a 3.95% simple annual interest rate, approximately how long will it take for you to have a total of $21,000?

36 years

You have $12,000 to invest and want to keep your money invested for 8 years. You are considering the following investment options. Choose the investment option that will earn you the most money.

4.175% compounded annually 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?

Aaron is a high school graduate working as a retail clerk. He earns a median salary for a high school graduate. Aaron is thinking about going to college to get an associate's degree. If he completes his degree in 2 years and college costs total $30,000, how long will it take Aaron to recover his investment, assuming that he earns the median salary and continues to work full time while he is attending school? a. about 2.5 years b. about 5.5 years c. about 8.5 years d. about 11.5 years

A

An employee makes an hourly rate plus any tips they earn. This tip employee made a total of $400 by working 28 hours last week. If $253 of their total earnings was their tips, what is their hourly rate of pay? a. $5.25 b. $5.61 c. $8.82 d. $9.04

A

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

A

Based on the above graph, in 2016, which occupation is projected to have about 2,500,000 more workers than there will be computer systems analysts? a. Registered nurses b. Postsecondary teachers c. Waiters and waitresses d. None of these

A

Based on the above graph, which of the four occupations listed is expected to add the greatest number of jobs from 2006 to 2016? a. Registered nurses b. Postsecondary teachers c. Waiters and waitresses d. Computer systems analysts

A

Based on the spreadsheet below, what is the net cash flow? a. $290 b. $390 c. $1,750 d. $2,040

A

Ben owns a townhome valued at $195,000, but still owes $120,000 on the loan. Ben has $5,000 in savings and a balance of $1,400 on his credit cards. There is a balance of $20,000 owed on Ben's car which is valued at $38,000. What is Ben's net worth? a. $96,600 b. $97,600 c. $99,400 d. $106,600

A

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

A

Bridget purchased 3 pairs of shoes online. The total bill of $126.81 included a $7.50 shipping charge and 6% tax on the total purchase. If the shoes that Bridget purchased were all priced the same, how much did each pair of shoes cost? a. $37.52 b. $39.77 c. $42.42 d. $112.56

A

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $35,400. a. Social Security tax: $2,194.80, Medicare tax: $513.30 b. Social Security tax: $21,948.00, Medicare tax: $5,133.00 c. Social Security tax: $6,621.60, Medicare tax: $513.30 d. Social Security tax: $66,216.00, Medicare tax: $5,133.00

A

Calculate the income needed based on the following budgeted expenses. Month _______ Budgeted Amount Rent $350 Utilities $100 Food $150 Entertainment $75 Bus Pass $25 College Savings $300 a. The income would need to be at least $1000. b. The income would need to be at least $950. c. The income would need to be at least $1125. d. The income would need to be at least $850.

A

Careers differ in many ways other than just income, and these differences can affect your long-term goals or your ability to attain the same. Which of the following is not a factor of a career that might affect your long-term goals? a. The job tends to offer a generous number of sick or personal days per year. b. The job is with a company that tends to rapidly promote its best employees. c. The job is in a field that has recently faced massive cutbacks or losses. d. The job tends to relocate its employees on a regular basis.

A

Chloe receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 23% of federal tax, determine if Chloe's net pay is correct. Earnings Deductions Week Ended Regular FED. SOC. MED STATE WITH. WITH. CARE. WITH. NET PAY 9/10 $856.00 $80.00 $53.07 $12.41 $18.40 $692.12 Choose the true statement below. a. The net pay is correct. b. The Social Security tax is not correct. c. The Medicare tax is not correct. d. The state tax is not correct.

A

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

A

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.

A

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

A

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

A

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

If there is a positive correlation between salary and education, then based on the table shown, which of the following careers requires the most education? a. accountant b. paralegal c. photographer d. surveyor

A

Jasmine has a gross pay of $754.80. By how much will Jasmine's gross pay be reduced if she has the following items withheld? federal tax of $31 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 18% of her federal tax a. $94.32 b. $192.83 c. $224.60 d. $323.11

A

Jim and Jackie are married with three children at home and a mortgage. Jim's net pay per year is $67,000 and Jackie does not have income. Their mortgage payment of $2,800 includes insurance on their home. They have additional monthly expenses of $2,700. Jim contributes 15% of his earnings to a retirement fund and they have $5,000 in savings. There is a $500,000 life insurance policy on Jim and a $100,000 policy on Jackie. As their financial advisor, what part of Jim and Jackie's financial plan would you encourage them to work on? a. They should work on their plan for managing income. b. They should work on their plan for managing their liquidity. c. They should work on their plan for protecting their assets. d. They should work on their plan for protecting their income.

A

Jim contributes 15% of his earnings to a retirement fund and they have $5,000 in savings. There is a $500,000 life insurance policy on Jim and a $100,000 policy on Jackie. As their financial advisor, what part of Jim and Jackie's financial plan would you encourage them to work on? a. They should work on their plan for managing income. b. They should work on their plan for managing their liquidity. c. They should work on their plan for protecting their assets. d. They should work on their plan for protecting their income.

A

Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 19% of federal tax, determine if Juanita's net pay is correct. Earnings Deductions Week Ended Regular FED. SOC. MED STATE WITH. WITH. CARE. WITH. NET PAY 11/17 $1,020.00 $107.00 $63.24 $14.79 $20.33 $814.64 Choose the true statement below. a. The net pay is correct. b. The Social Security tax is not correct. c. The Medicare tax is not correct. d. The state tax is not correct.

A

Julian is trying to decide on a future career. He has narrowed down his choices to orthodontist, sound engineering technician, police officer, or editor. The following table represents the total employment numbers for 2006 and projected employment numbers for 2016. Orthodontist Sound engineer technician Police officer Editor 2006 9,206 16,125 648,982 122,273 2016 10,214 17,864 719,041 124,135 Which profession is projected to have the greatest percent of increase in the number of jobs from 2006 to 2016? a. Orthodontist b. Sound engineer technician c. Police officer d. Editor

A

Justin is married with one child. He works 40 hours each week at a rate of $16 per hour. His wife began working part time after their daughter was born, but still contributes about $350 to the cash inflow each month. Their monthly cash outflow is generally about $3,000. They have a balance of $2,000 in their savings account. Justin has retirement contributions taken out of his paycheck at work. They have renter's, car and life insurance coverage. Based on this information, what part of their financial plan should Justin and his wife work on? a. managing income b. managing liquidity c. protecting assets d. retirement

A

Kendra is working on her financial plan and lists all of her income and expenses in the spreadsheet below. What is Kendra's net cash flow? a. $295 b. $285 c. $275 d. $255

A

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: 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.

A

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

A

Loretta's income last year was $81,300. She made $56,800 at her salaried job and had additional passive income. If Loretta earned the same amount of passive income each month for the entire year, approximately how much per month was it? a. $2,040 b. $2,125 c. $4,730 d. $6,775

A

Maddox wants to go back to college full-time. His current employer has agreed to reduce his hours from 40 hours to 25 hours while retaining his current rate of pay. Maddox has lived in his own apartment for 1 year and really likes his independence. Which of the following budgets below would fit his new situation?

A

Mariah is putting $5,270 into an account earning 3.75% interest compounded quarterly. She estimates that it will take just over 9 years for this investment to grow to $8,000. Which of the following is a true statement? a. Mariah's estimate of the time is too low. b. Mariah's estimate of the time is correct. c. Mariah's estimate of the time is too high. d. Mariah does not have enough information to estimate the time.

A

Miguel paid a total of $12,000 for stock that was $8 per share. If he sold all his shares for $15,000, how much profit on each share did he make? a. $2 b. $8 c. $10 d. $12

A

Miguel's employer pays $1,825 in health insurance and $93 in life insurance per year. He also gets $2,860 in paid time off per year. His monthly gross pay is $3,890. What are Migual's total job benefits per year? a. $51,458 b. $46,680 c. $8,668 d. $4,778

A

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?

Answer: B ($158,000)

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. 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.

A

Porsha calculates the amount of money she will have at the end of 6 years on a $5,000 investment earning 3.75% interest compounded quarterly. She writes the following expression: 2007-04-06-00-00_files/i0210000.jpg Which of the following statements about Porsha's expression is true? a. Porsha's expression is correct. b. Porsha's expression should have 1 + 0.009375 in the parentheses. c. Porsha's expression should have an exponent of 6, not 24. d. Porsha's expression should have both 1 + 0.009375 in the parentheses and an exponent of 6.

A

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.

A

Select the budget that would most quickly achieve the financial goal of saving $6000 for college tuition. Monthly Budget Budget A Budget B Budget C Budget D Income $1250 $1000 $1125 $1500 Expenses Rent Utilities Food Cell Phone Savings Personal Items Entertainment Car Expenses Clothing $200 $70 $150 $0 $600 $120 $30 $0 $20 $200 $80 $250 $75 $50 $10 $100 $200 $0 $300 $75 $160 $40 $200 $25 $20 $0 $300 $0 $0 $400 $110 $450 $50 $150 $250 $50 Net Income $60 $35 $5 $40 a. Budget A b. Budget B c. Budget C d. Budget D

A

Sofia still lives at home, but helps with the rent paying $200 per month. She has a job that pays about $700 per month after taxes. She has to pay for her own personal items such as clothing and toiletries spending about $120 per month. Going out with friends is important to her, but she also wants to save money to buy her own car. Select the budget that would best help meet her goals. Monthly Budget Budget A Budget B Budget C Budget D Income $700 $700 $700 $700 Expenses - Rent Personal Items Entertainment Savings $200 $120 $100 $250 $200 $120 $300 $50 $200 $120 $200 $150 $200 $120 $325 $25 a. Budget A b. Budget B c. Budget C d. Budget D

A

The amount of money in a savings account is an example of which of the following? a. investment asset b. liquid asset c. long term asset d. use asset

A

The amount of money invested in a retirement fund is an example of which of the following? a. investment asset b. liquid asset c. long term asset d. use asset

A

The earnings of two employees are given below: Employee A: 6% commission on all sales Employee B: 4% commission on the first $80,000 and 8% on anything over $80,000 How much more does a straight commission employee make than the graduated commission employee for sales of $100,000? a. $1,200 b. $1,600 c. $2,000 d. $3,200

A

The following table shows the assets and liabilities of the Smith family in 2005 and 2009. 2005 2009 home valued at $200,000 home valued at $180,000 mortgage of $30,000 home equity loan of $18,000 car valued at $25,000 car valued at $18,000 car loan of $8,000 boat valued at $20,000 personal loan of $5,000 Based on the table, which of the following is true? a. From 2005 to 2009, both assets and liabilities decreased. b. From 2005 to 2009, both assets and liabilities increased. c. From 2005 to 2009, assets decreased and liabilities increased. d. From 2005 to 2009, assets increased and liabilities decreased.

A

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..

A

The table below is comparing level of education achieved to the rate of unemployment and the median weekly earnings in 2008. Based on the information provided, the unemployment rate decreases the most when moving between which two consecutive educational levels? a. "Less than high school" and "High School Graduate" b. "High school graduate" and "Some college, no degree" c. "Associate degree" and "Bachelor's degree" d. "Professional degree" and "Doctoral degree"

A

The table below shows the earnings, in thousands of dollars, for three different commissioned employees. Employee #1 $2,000 + 3% on all sales Employee #2 7% on all sales Employee #3 5% on the first $40,000 + 8% on anything over $40,000 December 4.4 5.6 5.2 January 3.5 3.85 3.6 February 4.7 4.9 4.4 Which employee did not have the same dollar amount in sales for the month of February as the other two employees? a. Employee #1. b. Employee #2 c. Employee #3 d. They each had the same dollar amount in sales.

A

Trevor restores antique cars and sells them for profit. This is an example of _____ income. a. capital gains b. earned c. hourly d. passive

A

Two people quit work and begin college at the same time. Their salary and education information is given in the table below. Salary prior to school Years attending college Total cost of college Salary upon graduating Person A $18,000 3 $45000 $33,000 Person B $27,000 4 $30,000 $37,000 Choose the true statement. a. Person A recovers their investment in a shorter amount of time. b. Person B recovers their investment in a shorter amount of time. c. They recover their investments in the same amount of time. d. There is too little information to compare the time to recover their investments.

A

What is the difference between a co-payment and co-insurance?

Answer: B (A co-payment is a flat fee for each service, and co-insurance is based on a percentage of the costs incurred.)

What is the difference between assets and liquid assets? a. All assets represent money, but only liquid assets can be easily turned into spendable money and used to pay debts. b. An asset represents a credit or a positive value, while a liquid asset represents a debit or a negative value. c. Assets are money gained from your job, while liquid assets are money gained from sources such as investments or inheritances. d. An asset is owned by you alone, while a liquid asset is shared among several people, such as a married couple or a group of investors.

A

Which of the following describes a situation where you would most likely choose passive income over another type of income? a. A very successful band wants to record a song you wrote. You can sell the rights to the song or keep the rights and collect a percentage of the price of each compact disk sold. b. You own a home. You can sell it now to make a profit or you can rent it out for a year, giving the renter the option to buy it for the balance owed. c. The stocks you own go up and down in value, but are now up. You can keep the stocks and collect any monthly dividends or sell them for all for profit now. d. Your company offers you two options of how you can be paid. You can be paid an annual salary or an hourly wage.

A

Which of the following employees derives their income from a fee for the items sold? a. commission b. piece rate c. salaried d. tip

A

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.

A

Which of the following statements accurately describes the result of an increasing worker-per-beneficiary ratio in the Social Security system? a. More 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. More taxed workers than beneficiaries means 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 insecure. c. More 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 insecure. d. More taxed workers than beneficiaries means 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

A

In 2007, the FDIC's insurance limit was $100,000 per person per bank. Approximately 62% of Gil's deposits were insured by the FDIC. Which of the following was a possible setup for Gil's deposits?

A $108,000 savings account and $46,000 CD at Bank T; a $36,000 money market account and $38,000 CD at Bank U; a $63,000 checking account, $80,000 savings account, and $70,000 money market account at Bank V

In 2007, the FDIC's insurance limit was $100,000 per person per bank. Approximately 59% of Mark's deposits were insured by the FDIC. Which of the following is a possible setup for Mark's deposits?

A $50,000 savings account and $31,000 money market account at Bank G; a $71,000 money market account, $109,000 CD, and $39,000 checking account at Bank H; a $55,000 checking account, $84,000 savings account, and $38,000 CD at Bank I

Lakisha just won some money in a sweepstakes drawing. She is considering putting her winnings in a long term investment. To the nearest dollar, how much money would Lakisha need to put into an account earning 5% interest compounded annually in order to have $30,000 at the end of 20 years?

A = P(1+r)^t 30,000 = P(1+0.05)^20 Lakisha will need to invest $11,307.

PPO

A Preferred Provider Organization, or a PPO, is a type of managed care organization that provides health care by doctors, hospitals, and specialists that are under contract with the insurance company and provide health care at a lower rate.

Norm has $15,000 to deposit. His daughter is a junior in high school and plans to go to college. Recommend the best way for Norm to store his money. Note that the interest rates are expressed on an annual basis.

A money market account paying 3.5% interest, renewable for three-month commitments

Property tax

A property tax is a tax derived from the value of real estate such as homes, business property and farm land.

A toaster oven costing $130 offers an extended warranty for 25% of the purchase price. If the local repair shop will fix a toaster oven for $8, how many times must the toaster oven break in order for the warranty to pay for itself? a. five b. six c. four d. one

A.

Which of the following is a benefit Social Security does not offer?

Automobile 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.

A.

When shopping for life insurance, you should look for: a. A company with a low premium rate and a good rating. b. A company that gives you benefits, like rewards points. c. A company with an agent that you like and trust. d. A company that has many policies to choose from.

A.

Which of the following is something that will not affect your homeowners insurance premium? a. the distance of the home from a school b. the distance of the home from a flood plain c. the distance of the home from a fire station d. the distance of the home from a fire hydrant

A.

In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change?

A. $12.48

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

Sherita, age 37, wants to pay no more than $750 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $3.96, what is the largest 15-year term policy she can buy without spending more than $750 annually?

A. $189,000

Sarah, age 29, makes $45,000 a year and wants to buy a 15-year term policy that would replace seven years of her salary. The annual premium rate (per $1000 of face value) for her age group is $1.46. What is Sarah's premium, to the nearest dollar?

A. $460

When shopping for life insurance, you should look for:

A. A company with a low premium rate and a good rating.

Because Aaron, age 32, is a smoker, he must pay more for life insurance. Given that Company A charges 20% more for smokers, Company B charges 18% more for smokers, Company C charge 25% more for smokers and Company D charges 15% more for smokers, Aaron decides to buy his $250,000 policy from Company B. Which of the following statements is true?

A. Aaron is paying the smallest premium possible with Company B.

In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change?

Answer: A ($12.48)

Susan is paying $0.30 per $100 on her $483,000 home in homeowners insurance annually. If her annual homeowners insurance premium is divided into twelve equal monthly installments to be included on each of her monthly mortgage payments of $2,128.00, what is her total monthly payment?

Answer: A ($2,248.75)

After reviewing her driving record for the past 3 years, Cindy's insurance company offers her a good driver discount of 4.5%. Her original policy was based on the premiums listed below. What is her new annual premium including the discount?

Answer: A ($504.24)

Ben just purchased a house in an older neighborhood. After talking to several neighbors across the street, he found that he is paying much more in homeowners insurance than other homeowners in the neighborhood. Ben's house is about 30 years old. It is made of wood framing and stucco texture. It has all of its original plumbing and electrical work. The brick wall at the back of his backyard separates his yard from a drainage wash. Which of the following is not a reasonable argument for the insurance company to use to justify Ben's higher homeowners insurance premium?

Answer: A (The age and outdated structural design of the house implies that remodeling is likely. This warrants a higher premium.)

Which of the following is something that will not affect your homeowners insurance premium?

Answer: A (The distance of the home from a school.)

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.

Answer: B (Even with the extra charge for renewal, Eva's plan is the least expensive.)

Renters insurance is different than homeowners insurance in that _____________.

Answer: B (Homeowners insurance protects the building of residence while renters insurance does not.)

What is the basic difference between liability insurance and collision insurance?

Answer: B (Liability insurance covers damage that you cause, and collision insurance covers damage done to your vehicle.)

Which of the following statements is not something you should be thinking when considering changes in your auto insurance policy?

Answer: B (The premium you pay guarantees that you will never have to pay more than your deductible in the event of an accident.)

Rudy has been paying an annual homeowners insurance premium of $1,106.30 ($0.37 per $100 of value) since he first purchased his house. For the past six months, Rudy has completed some major improvements to his house to improve its overall value. If Rudy successfully adds $50,000 to the value of his house, what will his new annual homeowners insurance premium be?

Answer: C ($1,291.30)

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?

Answer: C ($6,256.88)

Tina was involved in an accident in which she rear-ended another driver stopped at a stoplight. Tina is fully insured through her insurance company. Which of the following components of her insurance policy will cover the damages caused to Tina's car in the accident?

Answer: C (Collision)

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.

Answer: C (DeShawn's current policy will cover his family for an adequate period of time at his current salary.)

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collisions, and $50 deductible for comprehensive. Which of the following changes would increase Susie's limits the most without increasing her monthly premium by more than $5.00?

Answer: C (Increase coverage on bodily to $100/300,000 and on property damage to $50,000.)

Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?

Answer: C (Reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same.)

In a fee-for-service health insurance plan with a $6,500 annual deductible, ____________.

Answer: C (The insured individual must pay $6,500 in health care before the insurance company will begin to pay for his health care needs.)

Tara and Levi are trying to decide between homeowners insurance policies offered by two different agencies. AAA Insurance has offered to insure their home for an annual premium of $0.38 per $100 with a $500 deductible. Thompson's Insurance has offered to insure the same home for an annual premium of $0.26 per $100 with a deductible of $1,000. The house Tara and Levi purchased is valued at $425,000. Which of the following statements accurately describes the difference between the two plans?

Answer: C (Thomson's Insurance is cheaper even if Tara and Levi experience an incident that results in severe damage or loss to their home.)

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?

Answer: D ($24)

Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More?

Answer: D ($831.92)

Which of the following is not considered one of the four basic types of auto insurance?

Answer: D (Legal Responsibility)

Which of the following acronyms does not represent a managed care plan?

Answer: D (SOR)

Which of the following is something that should not be a consideration when choosing a health care plan?

Answer: D (The coverage the insured individual and family already receive in auto insurance.)

Sam is thinking of retiring from his job after many years of faithful service. During the last 35 years at his job, his annual salary averages to $37,991. Every month, his bills total $1,755. How much money would Sam need each month to supplement his monthly Social Security benefit (assuming his annual benefit is 42% of his salary average) and still be able to pay his bills?

At least $425.32

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?

At least $603.60

A graduated commission employee makes 3.5% interest on the first $50,000 in sales and 6.5% interest on all sales over $50,000. Which of the following expressions represents the employee's total earnings on $81,500 in sales? a. (0.035)(50,000) + (0.065)(81,500) b. (0.035)(50,000) + (0.065)(31,500) c. (0.35)(50,000) + (0.65)(31,500) d. (3.5)(50,000) + (6.5)(31,500)

B

A professor expects the education and health service industries to increase total employees by 14.8% from 2009 to 2016. Based on the employment graph below, approximately how many new jobs will the education and health service industries gain between 1/2009 and 1/2016? Education and Health Services - All Employees, 2000-2009 2007-01-03-00-00_files/i0170000.jpg a. 21,926,800 b. 2,826,800 c. 16,273,200 d. 1,790,600

B

A professor expects the education and health service industries to increase total employees by 14.8% from 2009 to 2016. Based on the employment graph below, approximately how many new jobs will the education and health service industries gain between 1/2009 and 1/2016? Education and Health Services - All Employees, 2000-2009 a. 21,926,800 b. 2,826,800 c. 16,273,200 d. 1,790,600

B

An employee has an annual salary of $51,300. They receive $2,830 in health insurance and $4,600 in paid time off per year. They drive their personal vehicle for work which costs them $600 per month, but the company reimburses them $0.54 per mile for the total work miles driven. If the employee drives 36,000 miles for work for the year, what will be their total employment compensation? a. $70,740 b. $70,970 c. $77,570 d. $78,170

B

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

B

Based on the above chart, which industry's average annual rate of change is projected to decrease the most in the 2006-2016 period as compared to its average annual rate of change during 1996-2006? a. Utilities b. Educational services c. Federal government d. State and local government

B

Based on the above table, what is the fastest growing listed occupation for those without a college degree? a. Gaming and sports book writers and runners b. Dental assistants c. Marriage and family therapists d. Manicurists and pedicurists

B

Based on the above table, which services-providing industry gained the most jobs between 1996 and 2006? a. Educational services b. Professional and business services c. Retail trade d. State and local government

B

Bob gets paid an annual salary of $30,000 and earns 5% commission on all sales he makes. If Bob wants to make $6,000 this month, how much in sales does he need to have? a. $50,000 b. $70,000 c. $90,000 d. $120,000

B

Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is $50,760. Assuming that he will recieve 42% of his average annual salary, what will be his annual Social Security benefit? a. $2,131.92 b. $21,319.20 c. $213,192.00 d. $2,131,920.00

B

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $56,010. a. Social Security tax: $347.26, Medicare tax: $81.22 b. Social Security tax: $3,472.62, Medicare tax: $812.15 c. Social Security tax: $662.16, Medicare tax: $81.22 d. Social Security tax: $6,621.60, Medicare tax: $812.15

B

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

B

Data seems to indicate that there is a negative correlation between years of education and unemployment rates. Which of the following describes what this means? a. As education increases unemployment increases. b. As education increases unemployment decreases. c. As education decreases unemployment decreases. d. None of the above.

B

Earned income and capital gains (or "portfolio income") are acquired in different ways. Which statement describes how they are different? a. Earned income and capital gains are both based on the number of hours you work. b. Earned income is payment for employment, while capital gains are produced by your investments. c. Capital gains are received if you manage the company, but earned income is received if you are an employee of the company. d. Earned income is when you make the investment directly, but capital gains are when someone else has managed your investments.

B

Elisha is a photographer and charges a set fee to photograph weddings. This is an example of _____ income. a. capital gains b. earned c. hourly d. passive

B

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

B

Fran brings home $225 per week working 15 hours of which she is able to save $40. Fran wants to have $1,400 saved at the end of 20 weeks. She may work up to 18 hours per week if she wants. She can save all of the money earned working the extra hours. Which of the following statements is true? a. Fran will meet her goal working 15 hours per week. b. Fran must work 17 hours per week to meet her goal. c. Fran must work 18 hours per week to meet her goal. d. Fran will not be able to reach her goal.

B

Greg and Josh want to go whitewater rafting in 3 weeks. Josh is able to save the $480 he needs to go on the trip by saving the pay he received for 5 hours of work each week. Greg must save 8 hours worth of pay each week in order to have enough money. How much more money does Josh make than Greg? a. $10 b. $12 c. $14 d. $20

B

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.

B

How much money would need to be deposited into an account earning 5.25% interest compounded annually in order for the accumulated value at the end of 25 years to be $75,000? a. $20,243.85 b. $20,869.34 c. $57,142.86 d. $67,245.61

B

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

B

In the formula I=P·r·t, what does P stand for? a. Percent: the interest rate expressed as a percentage b. Principal: the amount of money you initially invested c. Period: how often the interest is calculated d. Payout: how much money you end up with

B

Kai had a gross weekly paycheck of $616 last week. Kai worked 6 hours for 4 of the days and 8 hours on 1 day. What is Kai's hourly rate of pay? a. $16.21 b. $19.25 c. $20.53 d. $25.67

B

Keeping federal withholding allowances less than 6, in which of the following cases will the amount of federal tax withheld from gross pay increase? a. Gross pay stays the same and withholding allowances increase. b. Gross pay increases by >$20 and withholding allowances stay the same. c. Gross pay increases by >$20 and withholding allowances increase. d. Gross pay decreases by >$20 and withholding allowances stay the same.

B

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

B

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

B

Mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down.Which of the following is true? a. Mary decreased both assets and liabilities. b. Mary increased both assets and liabilities. c. Mary decreased assets and increased liabilities. d. Mary increased assets and decreased liabilities.

B

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. 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?

B

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

B

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

B

Mr. Gonzalez earns his living as a salary plus commission employee. His annual salary is $18,000. He makes 4% commission on all of his sales. Mr. Gonzalez wants to earn $60,000 this year. If his earnings are divided evenly throughout the year, how much in monthly sales would Mr. Gonzalez need to have? a. $37,500 b. $87,500 c. $100,000 d. $125,000

B

One possible solution to a diminishing Social Security payroll is to decrease the Social Security benefit by 13%. How would such a decrease effect the benefits on a salary of $54,000? a. Benefit would decrease by $1,404 annually. b. Benefit would decrease by $7,020 annually. c. Benefit would decrease by $8,640 annually. d. Benefit would decrease by $15,660 annually.

B

Padraig is a financial advisor. He earned a salary of $80,000 last year and sold stocks for $5,000. Which of the following types of income did Padraig have? I earned income II passive income III capital gains income a. I and II b. I and III c. II and III d. III

B

Pete earns graduated commission on his sales each month. He earns 7% commission on the first $35,000 in sales and 9% on anything over that. If Pete had $43,000 in sales this month, how much commission did he earn? a. $2,610 b. $3,170 c. $3,870 d. $6,880

B

Predict how much money can be saved without having a negative actual net income. Monthly Budget Budgeted Amount Actual Amount Income Wages Savings Interest $1150 $25 $900 $25 Expenses Rent Utilities Food Cell Phone Savings $400 $100 $250 $75 $200 $400 $80 $200 $75 $____ Net Income $150 $____ a. It is not possible to save any money this month without having a negative actual net income. b. $170 can be saved resulting in an actual net income of $0. c. $200 can be saved resulting in an actual net income of $150. d. As long as you are saving money, you will not have a negative actual net income.

B

Richard's checkbook register as of 02/19: Enter the following transactions into Richard's checkbook register and state his ending balance:

B

Sally earns graduated commission on her sales each month. She earns 6% commission on the first $45,000 in sales and 8% on anything over that. If Sally had $51,000 in sales this month, how much commission did she earn? a. $4,080 b. $3,180 c. $3,060 d. $2,820

B

Sam is thinking of retiring from his job after many years of faithful service. During the last 35 years at his job, his annual salary averages to $37,991. Every month, his bills total $1,755. How much money would Sam need each month to supplement his monthly Social Security benefit (assuming his annual benefit is 42% of his salary average) and still be able to pay his bills? a. At least $81.23 b. At least $425.32 c. At least $1,410.92 d. At least $3,019.67

B

Say a certain manufacturing industry has 63.1 thousand jobs in 2008, but is expected to decline at an average annual rate of 1.7 thousand jobs per year from 2008 to 2018. Assuming this holds true, what will be this industry's percent change from 2008 to 2018? a. 70% b. -27% c. -17% d. -75%

B

Selina claims single having one exemption. Her state tax deduction is 21% of her federal tax contribution. Calculate the amount of state tax Selina owes if her gross pay for two weeks is $840. The following federal tax table is for biweekly earnings of a single person. 2007-02-03-00-00_files/i0100000.jpg a. $16.17 b. $16.80 c. $32.34 d. $33.60

B

Selina claims single having one exemption. Her state tax deduction is 21% of her federal tax contribution. Calculate the amount of state tax Selina owes if her gross pay for two weeks is $840. The following federal tax table is for biweekly earnings of a single person. a. $16.17 b. $16.80 c. $32.34 d. $33.60

B

Shawnee is putting $3,500 into an account earning 4.85% interest compounded quarterly. She estimates that it will take just over 11 years for this investment to grow to $6,000. Which of the following is a true statement? a. Shawnee's estimate of the time is too low. b. Shawnee's estimate of the time is correct. c. Shawnee's estimate of the time is too high. d. Shawnee does not have enough information to estimate the time.

B

Tamara earns $8 an hour at her job working 25 hours per week. If 22% of her paycheck goes to taxes, what is Tamara's monthly cash inflow? (Assume this is her only source of income and that there are 4 pays per month.) a. $176 b. $624 c. $778 d. $800

B

Tamara earns her living as a salary plus commission employee. Her annual salary is $48,000, and she earns 4% commission on all sales she makes. If Tamara wants to make a total of $6,000 this month, how much in sales does she need to have? a. $30,000 b. $50,000 c. $100,000 d. $150,000

B

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

B

The Anderson family wants to look at their cash flow over a year. They decide to write out their cash flow for 4 months as given in the spreadsheet below. In which of the months did they have the greatest net cash flow? a. January b. April c. August d. December

B

The Worthingtons love to travel, so when they retired they sold their house and purchased a motor home valued at $165,000. They tow their car, valued at $32,000 behind their motor home when they travel. The Worthingtons have medical bills totaling $1,300 and a balance of $3,000 on credit cards. Since they invested for retirement, the Worthingtons have $200,000 in investments and an additional $20,000 in their savings account. What is the Worthingtons' net worth? a. $411,700 b. $412,700 c. $413,700 d. $414,700

B

The average hourly earnings for a construction worker is projected to be $24.50 in 2012. Jason wants to join the construction work force after he graduates in 2012. His friend tells him that average hourly earnings for construction workers will rise by 2% from 2009 to 2012. Based on the data below, assuming that the projected hourly earnings are correct, is Jason's friend's statement accurate? Construction Industry - Average Hourly Earnings, 2000-2009 2007-01-03-00-00_files/i0180000.jpg a. His friend's statement is accurate. The average hourly earnings will increase by 2%. b. His friend's statement is not accurate. The percent increase will be more than 2% c. His friend's statement is not accurate. The percent increase will be less than 2% d. His friend's statement is not accurate. The average hourly earnings will decrease.

B

The average hourly earnings for a construction worker is projected to be $24.50 in 2012. Jason wants to join the construction work force after he graduates in 2012. His friend tells him that average hourly earnings for construction workers will rise by 2% from 2009 to 2012. Based on the data below, assuming that the projected hourly earnings are correct, is Jason's friend's statement accurate? Construction Industry - Average Hourly Earnings, 2000-2009 a. His friend's statement is accurate. The average hourly earnings will increase by 2%. b. His friend's statement is not accurate. The percent increase will be more than 2% c. His friend's statement is not accurate. The percent increase will be less than 2% d. His friend's statement is not accurate. The average hourly earnings will decrease.

B

The projected number of employed writers and authors in 2016 is 153,000. 12.4% of those will have some college experience but no degree, and 84.1% will have a bachelor's degree or higher. If this holds true, how many more writers and authors with bachelor's degree will there be than those with only some college experience and no degree? a. 147,645 b. 109,701 c. 134,028 d. 128,673

B

The table below shows the typical hours worked by employees at a company. A salaried employee makes $50,000 per year. Hourly employees get paid $20 per hour, but get $30 per hour for each hour over 40 hours. Sun. Mon. Tues. Wed. Thurs. Fri. Sat. 0 8 8 9 9.5 7.5 4 Which of the payment options would you recommend to a new employee? a. Either one. Hourly and salaried employees earn the same amount per week. b. Hourly pay. Hourly employees make more per week than salaried employees. c. Salaried pay. Salaried employees make more per week than hourly employees. d. There is not enough information given to compare weekly earnings.

B

The total amount of deductions from an employee's gross pay is $83.20. If the gross pay is $378.18, what percent of their gross pay is being withheld? a. 21% b. 22% c. 23% d. 24%

B

The total employment for police officers in 2006 was 648,000. If there are 719,000 police officers in 2016, what will the percent increase have been? a. 5.12% b. 10.96% c. 11.09% d. 22.07%

B

Tristan has found a good job as a bookkeeping clerk after finishing his associates degree at the local community college. He is making a beginning annual salary of $19,760. How can this increased income affect his financial decisions? Compare his previous budget when he worked part time while finishing his degree with his current budget after getting a full time job. Monthly Budget Previous Budget Current Budget Income Wages $786 $1646 Expenses Rent Utilities Groceries Savings Car Expenses Entertainment $300 $60 $130 $120 $150 $20 $600 $120 $200 $350 $150 $120 Net Income $6 $106 a. Tristan is spending too much money on groceries and entertainment. b. Tristan is earning quite a bit more in his full time job. He is spending more on rent, utilities, food, and entertainment, as well as saving $350 each month. c. Tristan is earning double his previous wages. He should double his expenses, as well. d. Tristan's increased income should have no effect on his financial decisions.

B

Vicki works 19 hours per week. Her take home pay is $17.30 per hour. If Vicki is able to save all of her earnings, how long will it take her to save at least $4,000? a. 12 weeks b. 13 weeks c. 14 weeks d. 15 weeks

B

What is meant by the term financial planning? a. Long-term goals are reached over an extended period of time, so your current income does not affect them. b. It is creating a road map of everything you do with your money. c. It is hoping you will have enough money to pay all your bills on time. d. If your income exceeds your expenses, you will be able to save money for the future.

B

When it goes on sale for $1,600, Mikah buys a new plasma television that is valued at $1,800. He takes $300 from his savings account to use as a down payment and finances the rest. Choose the true statement. a. Mikah's assets increased by $1,300. b. Mikah's assets increased by $1,500. c. Mikah's assets increased by $1,600. d. Mikah's assets increased by $1,800.

B

When preparing a monthly budget, describe how net income is calculated. a. Net income is calculated by taking the expenses subtotal and subtracting the income subtotal. b. Net income is calculated by taking the income subtotal and subtracting the expenses subtotal. c. Subtracting the expenses subtotal from the net income will give you the income subtotal. d. Adding the expenses subtotal to the net income will give you the income subtotal.

B

Which of the following employees has the greatest total employee compensation? a. Employee A: total job benefits $68,100 and total job expenses $100 b. Employee B: total job benefits $68,400 and total job expenses $300 c. Employee C: total job benefits $68,700 and total job expenses $800 d. Employee D: total job benefits $69,000 and total job expenses $1,000

B

Which of the following increases liabilities but not assets? a. Taking out a loan to buy a new car b. Taking out a loan to go on vacation c. Using a credit card to buy a computer d. Paying off a student loan

B

Which of the following is a liability? a. bonus paycheck b. credit card balance c. investment fund d. savings account

B

Which of the following statements is always true? a. Workers being paid on commission make less money than if they are salaried. b. Workers being paid on commission get paid based solely on their performance. c. Workers being paid on commission are stressed over the amount of earnings they will have. d. Workers being paid on commission increase the accounting costs of the employer.

B

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

B

Which of the following would you list under cash inflows in a financial plan? a. You took a friend to lunch. b. You received a bonus at work. c. You got a discount on a new computer. d. You paid interest on a loan.

B

You have $10,000 to invest and want to keep your money invested for 10 years. You are considering the following investment options. Choose the investment option that will earn you the most money. a. 2.89% compounded monthly b. 2.975% compounded quarterly c. 2.99% compounded annually d. 3.25% simple interest

B

Yvonne has a goal of buying a brand new home within a year. She's afraid that she will be unable to save the money that she needs for a down payment. Which of the following should not be part of Yvonne's plan for achieving her goal of buying a home? a. Delay buying the home for a few months b. Borrow the money for the down payment and pay it back later c. Adjust her budget to save more each month d. Take on a part-time job to earn extra income

B

A complete desktop computer costs $965. A replacement monitor costs $238, a replacement hard drive costs $260, a replacement outer case costs $145, labor to repair it costs $77, and shipping it to and from a repair center costs $41. A full warranty, which covers the entire cost of repairing the computer, is 35% of the purchase price. A limited warranty, which only covers internal parts and labor, costs 11% of the purchase price. If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much?

B.

A new DVD player has a purchase price of $430. With the extended warranty, the total cost is $512. What percent of the purchase price is the price of the warranty? a. 16% b. 19% c. 24% d. 29%

B.

A vacuum cleaner costs $68, and the full replacement extended warranty costs $22. If the manufacturer sells 360,920 vacuum cleaners under warranty and must replace 15% of them to honor the warranties, how much will the replacement costs be?

B.

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?

B.

The extended warranty on a ceiling fan is 18% of the purchase price. If the price of the fan is $140, how much is the warranty?

B.

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

B.

Zach is looking for a homeowners insurance policy for his new house. AAA Insurance company has offered him a plan that insures his home annually for $0.36 per $100 of value in the home. In order to make calculations easier, Thompson's Insurance lists their annual homeowners insurance premium a bit differently, at $3.63 per $1,000 of value in the home. Zach's house is worth $289,000. What should Zach be thinking as he chooses between the two insurance companies? a. $3.63 per $1,000 is approximately the same as $0.36 per $100. The premiums for the two insurance companies will be the same. b. The annual premium for his house would be cheaper through AAA. c. The annual premium for his house would be cheaper through Thompson's. d. Since the two insurance companies list their premiums differently, the two cannot be compared.

B.

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?

B. $158,000

After getting married, Joe, 32, and Melinda, 29, decide to take out life insurance policies. Joe would like a 15-year term policy and Melinda would like a 20-year term policy. They each want a $300,000 policy. How much can Joe and Melinda expect to pay in premiums the first year?

B. $2,484

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?

B. $972,000

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.

B. Even with the extra charge for renewal, Eva's plan is the least expensive.

The two basic types of life insurance policies are:

B. Term and Permanent Whole Life

You will pay substantially less for life insurance if which of the following factors is true?

B. You are in good health

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?

Bank R

Henry is moving and needs to open a new checking account. He is trying to decide between three banks using the chart below: 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?

Bank Z

One possible solution to a diminishing Social Security payroll is to decrease the Social Security benefit by 13%. How would such a decrease effect the benefits on a salary of $54,000?

Benefit would decrease by $7,020 annually.

bodily injury liability

Bodily injury liability insures that if a policy holder causes injury to another, the injury caused will be covered.

An investment of $1,000 is earning interest at the rate of 3.8% compounded daily over 3 years. Approximately how much interest is earned on the investment? a. $892.26 b. $1120.75 c. $120.75 d. $38.7

C

An investment of $8,350 earns 5.2% interest compounded monthly over 10 years. Approximately how much interest is earned on the investment? a. $4,342 b. $5,513 c. $5,679 d. $13,863

C

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

C

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.

C

Angelo purchased some gifts for his younger brothers and sisters online. He bought a dollhouse for $32.59, 2 board games for $12.95 each and 2 movies for $9.99 each. The web site had a promotional offer of $5 off and no shipping fees for any purchase totaling at least $50. Angelo was charged 7.25% tax on his total purchase. How much did Angelo pay for his online purchase? a. $78.47 b. $78.80 c. $79.16 d. $84.16

C

Approximately how many more job openings are expected for security guards than pharmacy technicians? a. 2,000 b. 11,100 c. 21,000 d. 32,000

C

Based on the spreadsheet below, which of the following is a true statement? a. The net cash flow is negative. b. The net cash flow is zero. c. The net cash flow is positive. d. The net cash flow can't be determined.

C

Based on trends displayed in the graphs above, which answer choice represents a likely situation for 2010? a. There will be more than 6.5 million construction employees in 2010, and those employees will have average hourly earnings of $24.00. b. There will be over 6 million construction employees in 2010, and the average hourly earnings will be less than twenty dollars. c. There will be roughly 6 million employees in 2010, and those employees will have average hourly earnings of $22.75. d. There will be over 7.5 million employees in 2010, and those employees will earn, on average, $23.00 per hour.

C

By examining the spreadsheet below, what part of the financial plan might be missing? a. plan for managing income b. plan for financing c. plan for protecting assets d. plan for retirement

C

Which of the following would not be listed under cash outflows in a financial plan? a. car payments b. insurance premiums c. interest earned d. mortgage payment

C

Chuy wants to buy a new television. The television costs $1,350. Chuy decides to save the same amount of money each week, for 27 weeks. After 8 weeks Chuy saved $440. Which of the following conclusions can you make about Chuy's plan? a. Chuy has a good plan and will have exactly $1,350 saved at the end of 27 weeks. b. Chuy must increase the amount he saves each week in order to meet his goal at the end of 27 weeks. c. Chuy will save more than he needs and will meet his goal in less than 27 weeks. d. There is not enough information given to make a conclusion about Chuy's plan.

C

Consider the following incomplete deposit slip: 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

C

Determine the total annual FICA tax for an annual salary of $110,330. Use $106,800 for maximum taxable earnings. a. $822.14 b. $844.02 c. $8,221.39 d. $8,440.24

C

Drake wants to save $750 so that he can take a class on computer analysis for cars. The class is being held on various dates over the next several months. Drake is planning to take the class 6 weeks from now, so he plans to save $125 each week. Unfortunately, Drake had to take out a little money from his savings in the 3rd week. After 4 weeks, Drake has $470. He knows that he must adjust his plan in order to meet his goal. Drake came up with the following options: Option A: Stay with saving the original amount each week but take the class a week later than originally planned. Option B: Increase the amount of money he saves each week by $15 from his original plan. Which of the following is a true statement? a. Only option A will allow him to meet his goal. b. Only option B will allow him to meet his goal. c. Both options A and B will allow him to meet his goal. d. Neither option A nor option B will allow him to meet his goal.

C

Erica sells magazine subscriptions and makes a flat rate of $5.35 for each subscription she sells. If Erica made $42.80 on Monday, $64.20 on Tuesday and $74.90 on Wednesday, how many subscriptions did she sell in the three days? a. 32 b. 33 c. 34 d. 35

C

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

C

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

C

If you wish to calculate the interest on an investment with a rate of 3.58%, what number will you plug into your equation? a. 3.58 b. 0.358 c. 0.0358 d. 0.00358

C

Jamal works part-time earning $8,000 per year. He reduces his work hours by half so that he can go to school. Jamal completes his degree after 3 semesters (1.5 years) at a cost of $1,400 per semester in tuition and $500 per semester in books. What was Jamal?s investment in getting his degree? a. $4,700 b. $5,700 c. $11,700 d. $17,700

C

James has a job with a current salary of $42,000. He wants to earn a college degree that will take him 2 years to complete and it will cost $28,000 per year. He will go to school full time and will not be able to work. Upon graduation, James' new salary will be $56,000 per year. How many years will it take James to recover his investment? a. 1.3 years b. 2.5 years c. 10 years d. 20 years.

C

Luis makes $23.10 per hour at his job for the first 40 hours he works each week. If he works more than 40 hours, then Luis makes $34.65 per hour. If Luis works 46 hours in one week, how much does he earn? a. $1,062.60 b. $1,097.25 c. $1,131.90 d. $1,593.90

C

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 table 2007-02-03-00-00_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.

C

Marisol receives total employee benefits that are 14.5% of her gross annual pay. If Marisol has a gross annual pay of $50,000, how much in total employee benefits does she receive? a. $72.50 b. $725 c. $7,250 d. $57,250

C

Mark currently works part-time with a salary of $8,000 per year. Mark plans to quit working and attend college for 4 years. If his college costs will total $64,000, how long will it take Mark to recover his investment assuming he has a salary of $32,000 upon graduating? a. 2 years b. 3 years c. 4 years d. 5 years

C

Molly has biweekly gross earnings of $839.52. By claiming 1 more withholding allowance, Molly would have $16 more in her take home pay. How many withholding allowances does Molly currently claim? a. 1 b. 2 c. 3 d. 4

C

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

C

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

C

Over the period of a year, Sam's net worth increased. Which of the following could be true? a. Sam's assets and liabilities decreased by the same amount. b. Sam's assets and liabilities increased by the same amount. c. Sam's assets increased by more than his liabilities. d. Sam's assets decreased by more than his liabilities.

C

Padraig receives total employment compensation of $70,000 and had $2,000 in job expenses. Which of the following could be true about Padraig's gross pay and total employee benefits? a. His total employee benefits are 2.8% of his annual gross pay of $72,000. b. His total employee benefits are 2.9% of his annual gross pay of $68,000. c. His total employee benefits are 12.5% of his annual gross pay of $64,000. d. His total employee benefits are 13.3% of his annual gross pay of $60,000.

C

Planning for the possibility that the plumbing in your house needs repair is part of a plan for _____. a. financing b. managing income c. managing liquidity d. protecting assets

C

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

C

Ross purchases 3 cookbooks for $18.89 each, a set of measuring cups for $2.68, 4 kitchen utensils for $5.35 each and a cooling rack for $9.60. Ross uses a promotional discount of $5 off on the purchase of 3 or more cookbooks. There are no taxes charged on his purchase, but shipping charges are based on the following table: Ross selects standard shipping and is billed $94.35 for the total of the online purchase. Determine if Ross has been billed correctly for his purchase. a. Ross has been billed correctly. b. Ross has not been charged enough for his purchase. c. Ross has been over charged by $3.75 for his purchase. d. Ross has been over charged by $4.25 for his purchase.

C

Selena purchased some gifts for her nieces and nephews online. She bought 3 dolls each priced at $19.99 each and 4 remote control cars priced at $21.99 each. Selena was able to get an online coupon for $3 off on each remote control car that she purchased. There was no sales tax, but the shipping charge was $10.50. What was the total amount Selena paid for her online purchase? a. $135.93 b. $144.93 c. $146.43 d. $155.43

C

The Roth family has liquid assets of $10,000, use assets of $150,000 and investment assets of $34,000. They also have liabilities totaling $108,000. If their total liabilities increase by $7,000 over the next year, by how much would the Roth family need to increase their assets in order to have a net worth of $100,000? a. $7,000 b. $14,000 c. $21,000 d. $28,000

C

The table below shows the earnings, in thousands of dollars, for three different commissioned employees. $2,000 + 3% on all sales 7% on all sales 5% on the first $40,000 + 8% on anything over $40,000 December 4.4 5.6 5.2 January 3.5 3.85 3.6 February 4.7 4.9 4.4 Who had the largest dollar amount in sales for the month of January? a. The salary plus commission employee. b. The straight commission employee. c. The graduated commission employee. d. They each had the same dollar amount in sales.

C

The table below shows the typical hours worked by employees at a company. A salaried employee makes $78,000 per year. Hourly employees get paid $26 per hour, but get $39 per hour for each hour over 40 hours. Sun. Mon. Tues. Wed. Thurs. Fri. Sat. 0 8 8.5 9.5 10 8 3 Which of the payment options would you recommend to a new employee? a. Either one. Hourly and salaried employees earn the same amount per week. b. Hourly pay. Hourly employees make more per week than salaried employees. c. Salaried pay. Salaried employees make more per week than hourly employees. d. There is not enough information given to compare weekly earnings.

C

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

C

Two plans for reaching a goal are given below. Plan A: Save $450 over the next 8 weeks by working 9 hours per week at $7.20 per hour. Plan B: Save $450 over the next 6 weeks by working 15 hours per week at $6.50 per hour. Which of the following is a true statement? a. Only plan A will work for achieving the goal. b. Only plan B will work for achieving the goal. c. Both plans will work for achieving the goal. d. Neither plan will work for achieving the goal.

C

Tyra makes $21.40 per hour at her job for the first 40 hours and $32.10 for anything over 40 hours. If Tyra typically works 45 hours per week, how much does she earn? a. $856.00 b. $963.00 c. $1,016.50 d. $1,444.50

C

What is a "balance brought forward?"

C

Which of the following companies offers the greatest total employment compensation? Company A Company B Company C Company D Gross Pay $37,600 $36,800 $38,100 $39,000 Paid insurance $2,800 $2,400 $2,100 $1,800 Paid time off $3,100 $3,600 $2,900 $2,500 Job expenses $1,200 $600 $300 $800 a. Company A b. Company B c. Company C d. Company D

C

Which of the following employees has the largest gross pay? a. Employee A: Total employee benefits $1,500 Total job benefits $49,800 b. Employee B: Total employee benefits $1,050 Total job benefits $51,200 c. Employee C: Total employee benefits $1,000 Total job benefits $51,900 d. Employee D: Total employee benefits $3,000 Total job benefits $52,300

C

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

C

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

C

Which of the following modifications to the list of assets and liabilities below would result in a negative net worth? House valued at $90,000. Mortgage owed $78,000. Car valued at $11,000. Car loan of $5,000. Student loan of $13,700. Stocks valued at $2,500. Savings of $3,000. a. Net worth is already negative. b. House value decreasing to $83,000. c. Borrowing $10,000 more in student loans. d. Selling off all owned stocks.

C

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

C

Why is it useful to identify or analyze occupational and industrial trends when considering your career path? a. Jobs are all pretty much the same, so looking at trends will give you a precise picture of what the future should look like. b. Watching the trends within your chosen industry can tell you when you should expect to be promoted, so you can base your long-term goals around statistical trends. c. Occupational trends can give you an idea of whether a certain industry is improving or declining, and might help you identify how competitive your specific job market will be. d. Analyzing trends is not useful since statistics tend to be incorrect or misleading.

C

You are trying to save up for a spa package that costs $300. After looking at your paycheck, you decide that you will be able to set aside $50 a week for the next 6 weeks. Knowing this information, you call the spa to make a reservation for this package for 2 months from now. Which type of goal does this situation best describe? a. Immediate b. Long term c. Short term d. Unrealistic

C

You give up a full-time salary of $45,000 a year to go to school for 2 years. The total cost of going to school is $30,000. If you want to be able to recover your investment in 5 years or less, what is the minimum salary you would need to earn upon earning your degree? a. $51,000 b. $60,000 c. $69,000 d. $75,000

C

You have $12,000 to invest and want to keep your money invested for 8 years. You are considering the following investment options. Choose the investment option that will earn you the most money. a. 3.99% compounded monthly b. 4% compounded quarterly c. 4.175% compounded annually d. 4.2% simple interest

C

A space heater costing $235 offers an extended warranty for 15% of the purchase price. If the local repair shop will fix a space heater for $12, how many times must the space heater need repairs for the warranty to be worth the cost?

C.

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. Using the table, find the difference in total premium costs over 20 years for this policy at the two age levels.

C.

Of the following, which factor or factors would make it more likely that buying an extended warranty is a good idea?

C.

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie's limits the most without increasing her monthly premium by more than $5.00?

C.

The extended warranty on a mini fridge costs $41.25. If the warranty is 12.5% of the normal price, what is the cost of the mini fridge itself, to the nearest dollar?

C.

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. Using the table, find the difference in total premium costs over 20 years for this policy at the two age levels.

C. $12,875

If Yessenia wants to buy a $165,000 whole life policy, and the annual premium rate (per $1000 of face value) for her age group is $15.46, how much is Yessenia's monthly premium?

C. $212.57

Jacob wants to buy a $500,000 15-year term life policy, and the annual premium rate (per $1000 of face value) for his age group is $6.78. If Jacob lives until the end of the term of his policy, how much will Jacob have paid in premiums overall?

C. $50,850

If 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:

C. $6,621.60

You're 35 years old now, and you want to purchase life insurance which will cover your spouse for your lost income in the event of your death. You want this policy to last until what would be your normal retirement age of 65. Based on the given information, what is the best policy to buy?

C. 30-year term policy

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.

C. DeShawn's current policy will cover his family for an adequate period of time at his current salary.

Theresa has $708 in her account and wishes to throw a party. She plans to include the following: Purchase Cost ($) Decorations 76.92 Catering 150.66 Musicians 242.15 Refreshments 123.36 Venue 260.47 When Theresa makes the calculations, she finds that she cannot afford everything that she would like to have. What is the cheapest aspect of the party that she can eliminate to keep from overdrawing her account?

Catering

Theresa has $708 in her account and wishes to throw a party. She plans to include the following: When Theresa makes the calculations, she finds that she cannot afford everything that she would like to have. What is the cheapest aspect of the party that she can eliminate to keep from overdrawing her account?

Catering

Why do certificates of deposit tend to offer better interest rates than money market accounts?

Certificates of deposit involve a longer time commitment than money market accounts, so they carry a greater return.

Jenna wants to save a $10,000 trust fund she received when she turned 21, and add $50 per month as emergency funds. She has narrowed her search for a savings account to 2 banks, Bank A and Bank B. Bank A pays a fixed rate of interest, and Bank B pays a variable rate, but both rates are currently the same. Jenna's trusted friend advises her to make the selection based upon her banking needs in consideration of the other services and fees of the banks, because the interest rates are the same. If you were advising Jenna about how to choose an account based upon her own needs, what advice below would you not give her?

Choose the variable rate because if it goes up, you will make a lot of money that will pay for the fees.

The annual insurance premium for a car Nicole bought 6 months ago is $756.00 with a $500 deductible for collision. Nicole had just paid the bill for her sixth month of insurance before she was involved in a car accident resulting in $2,000 in damage to her car. Because she had collision insurance in her policy, the insurance company took care of all of the repairs less the $500.00 deductible. Considering how much she paid in insurance premiums and deductibles, would you say the purchase of insurance over the last 6 months was a good investment for Nicole? Why or why not?

Combining the 6 months of insurance payments ($63.00 per month for 6 months = $378.00) with the $500 deductible, Nicole paid a total of $878.00 for the $2,000 worth of repairs to her car. This was a good investment.

In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below. If Kevin is currently insured under Leroux for his medical insurance under Plan A, how will the proposed changes affect his health care costs?

Costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured.

A principal of $4,570 is placed in an account that earns 4.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 5 years? a. $4654.15 b. $4775.65 c. $5638.75 d. $5695.05

D

A principal of $5,350 is placed in an account that earns 3.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 4 years? a. $5,760.06 b. $5,537.25 c. $6,099.00 d. $6,139.25

D

A 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.

D

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 8/18 $_____ $62.00 $45.06 $10.54 $12.40 $596.80 What is the employee's gross pay? a. $703.86 b. $714.40 c. $716.26 d. $726.80

D

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

D

Alejandro lives in a small apartment, within walking distance to school. He takes the bus to work where he makes $10 per hour after taxes and works 30 hours per week. He wants to save money to buy a $6000 car within the next 2 years. How could a monthly budget be created to help Alejandro meet his financial goals? Select the best option. Monthly Budget Budget A Budget B Budget C Budget D Income $1,500 $1,500 $1,200 $1,200 Expenses- Rent Utilities Food Bus Pass Savings $600 $100 $150 $25 $250 $600 $100 $550 $25 $250 $600 $100 $250 $25 $250 $600 $100 $150 $25 $250 a. Budget A b. Budget B c. Budget C d. Budget D

D

An investment of $6,530 earns interest at the rate of 4% and is compounded quarterly. What is the accumulated value of the investment at the end of 8 years? a. $7,071.05 b. $7,659.97 c. $8,936.76 d. $8,978.36

D

Analyze the following budget, with an income of $750, to determine how much can be spent on food for the month. Month________ Budgeted Amount Food $___ Personal Items $20 Cell Phone $75 Entertainment $85 Car Expenses - Gas, Insurance $260 College Savings $250 a. No more than $70 can be spent on food. b. No more than $75 can be spent on food. c. No more than $80 can be spent on food. d. No more than $60 can be spent on food.

D

Antonio is ready to move out of his parent's house and live on his own. He found a great apartment that has all utilities included. His job as an assistant plumber requires him to have a car, but his hours are flexible enough to give him time on the weekends to have fun with his friends. What is the best way Antonio's budget can be modified to help him save enough for the $200 down payment and make the $500 monthly rental payment? Monthly Budget Old Budget New Budget Income Wages $1500 $1500 Expenses Food Cell Phone Savings Entertainment Car Expenses . $250 $175 $200 $200 $300 . $____ $____ $____ $____ $____ Net Income $375 $____ a. Antonio could keep his budget the same and hope he gets a raise at work. b. Antonio could reduce his monthly entertainment expenses by $100 to help pay the monthly rent. He could take $200 out of savings once for the deposit. c. Antonio could live at his parent's house for one more month and save his net income. After one month of living at home, he would have enough additional money for the deposit and one year's rent at the apartment. d. Antonio could reduce his monthly entertainment expenses by $75 and his food expenses by $50 to pay the monthly rent. He could take $200 out of savings once for the deposit.

D

Athena priced each of her art pieces at the same price and displayed them for sale in two different art shows. She made $495.80 from the first art show and $371.85 from the second show. If Athena sold 7 pieces of art, what price did each piece sell for? a. $109.52 b. $109.66 c. $123.81 d. $123.95

D

Based on the information provided in the graph, for which of the following situations could you expect to have the greatest increase in salary? 2007-01-02-00-00_files/i0060000.jpg a. Having a high school diploma and going to college for a year. b. Having an associate's degree and getting a bachelor's degree. c. Having a bachelors degree and getting a master's degree. d. Having a master's degree and getting a doctorate degree.

D

Based on the information provided in the graph, for which of the following situations could you expect to have the greatest increase in salary? a. Having a high school diploma and going to college for a year. b. Having an associate's degree and getting a bachelor's degree. c. Having a bachelors degree and getting a master's degree. d. Having a master's degree and getting a doctorate degree.

D

Cameron has decided to diversify his investments in the following way: $3,000 in an account earning 2.7% simple interest $5,000 in a savings account earning 1.8% interest compounded annually $5,000 in a certificate of deposit earning 3.9% interest compounded quarterly How much total interest will Cameron earn on his investments at the end of 3 years? a. $530.87 b. $665.57 c. $973.30 d. $1,135.30

D

Casey has a job doing valet parking. Casey makes an hourly rate of $4.55 per hour plus tips. Last week Casey worked 26 hours and made $898.55. How much in tips did Casey earn last week? a. $34.56 b. $118.30 c. $157.25 d. $780.25

D

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.

D

Choose the method of pay that would result in the most earnings for one month on sales of $60,000. a. Straight commission of 6% on all sales. b. Monthly salary of $1,500 plus 3% commission on all sales. c. Graduated commission of 4% on the first $50,000 in sales and 10% on anything over that. d. Graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.

D

Examine the following budget: Monthly Budget Budgeted Amount Actual Amount Income Wages Savings Interest $1150 $25 $900 $25 Expenses Rent Utilities Food Cell Phone Savings for Car $400 $100 $250 $75 $200 $400 $80 $200 $75 $200 Net Income $30 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 -$30. Less money could have been put into savings. b. The actual net income for the month is $30. No changes. c. The actual net income for the month is -$30. Less money could have been spent on food. d. Both a and c

D

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

D

How much more interest is earned on an investment of $12,585 at 3.5% interest over 5 years if the interest is compounded annually rather than earning simple interest? a. They are the same. b. $159.65 c. $2,362.03 d. $12,744.65

D

If there is a positive correlation between number of years of education and the amount of company pension contributions, which of the following professions would you expect to have the best company pension contributions? a. police officer, associates degree b. accountant, bachelor's degree c. lawyer, master's degree d. pharmacist, doctorate degree

D

If there is a positive correlation between salary and education, then based on the table shown, which of the following careers requires the least education? 2007-01-02-00-00-v1_files/i0060000.jpg a. accountant b. architect c. pharmacist d. surveyor

D

In considering career options, Ella would like to enter an industry with at least 50% growth from 2000 to 2010. Based on the above graph, which of the following industries is not in that category? a. Health services b. Computer and data processing c. Residential care d. Management and public relations

D

Kyle and Linda are married with two children at home and a mortgage. Kyle's net pay per year is $32,000 and Linda's is $48,000. Their monthly expenses are $3,500. Kyle and Linda each contribute 15% of their earnings to a retirement fund and they have $5,000 in savings. They also have a $100,000 life insurance policy on Kyle, but none on Linda. As their financial advisor, what part of Kyle and Linda's financial plan would you encourage them to work on and why? a. Their plan for managing income. Their net cash flow is negative. b. Their plan for managing their liquidity. They are not prepared for emergencies. c. Their plan for retirement. They don't contribute enough to meet their long term goals. d. Their plan for protecting their assets. They should have life insurance on Linda.

D

Last year Frank had a total income of $58,800. He sold a house and made a profit of $27,940. He also had monthly income of $80 from investments. Assuming Frank works 25 hours per week and 52 weeks per year as an hourly employee, how much more an hour would Frank had to have earned last year in order to have a total income of $59,970? a. $0.63 b. $0.72 c. $0.80 d. $0.90

D

Last year Lenny had an annual earned income of $58,475. He also had passive income of $1,255, and capital gains of $2,350. What was Lenny's total gross income for the year? a. $58,475 b. $59,730 c. $60,985 d. $62,080

D

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.

D

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

D

Liam uses checks and a debit card, but does not always write all the transactions in his checkbook register. He has lost track of his checkbook balance. Liam looks up the "available balance" using online banking, and writes it on the next line as his new checkbook balance available to spend. What is wrong with Liam's method?

D

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

D

Mariah is single and has a monthly disposable income of $3,200. Her monthly cash outflow is approximately $2,800. Mariah includes contributions to a retirement plan and money for investments as part of her cash outflow. She has car insurance and a life insurance policy. Mariah has saved $15,000, but wishes to use $10,000 for a down payment on a house. She has also purchased furnishings for a house, which she has in the spare bedroom of her apartment. Mariah hires a financial planner to examine her money management, and he determines that her plan needs work. What part of Mariah's financial plan would he encourage her to work on and why? a. Her plan for managing income. Her net cash flow is negative. b. Her plan for managing her liquidity. She is spending all of her savings on her down payment. c. Her plan for retirement. She does not have a retirement plan set up. d. Her plan for protecting her assets. In case of an emergency, she should have renters insurance for her apartment.

D

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld? federal tax of $92 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 22% of his federal tax a. $82.66 b. $129.13 c. $164.01 d. $174.66

D

Mikah invented and patented a new product which sells in local department stores. This is an example of _____ income. a. capital gains b. earned c. hourly d. passive

D

Mike and Kate plan to save money for their wedding over a 20 month period. They will need to save $8,000 to help pay for the wedding. They set aside the same amount each month. After a year they saved $4,000. Mike and Kate know they must adjust their plan in order to meet their goal, so they came up with the following options: Option A: Stay with saving the same amount they've been saving each month but postpone the wedding 2 months. Option B: Increase the amount of money they save each month by $80 from what they've been saving. Which of the following is a true statement? a. Only option A will allow them to meet their goal. b. Only option B will allow them to meet their goal. c. Both options A and B will allow them to meet their goal. d. Neither option A nor option B will allow them to meet their goal.

D

Nate has an account that pays 2.76% simple interest per year and wants to accumulate $3,090 in interest from it over the next 15 years. How much money should Nate invest in this account to meet this goal? a. $1,279.26 b. $4,369.26 c. $4,373.77 d. $7,463.77

D

Niah works as a retail sales clerk earning $18,000 per year. She plans to go to school for medical billing that has a median salary of $35,000. The cost of her education will be $20,000. If Niah does not work for the 2 years that she is in school, about how long will it take her to recover her investment if she gets a medical billing job making the median salary when she graduates? a. less than 1 year b. 1.2 years c. 1.6 years d. 3.3 years

D

Nick is making a deposit with a check and wants cash back. His deposit slip has his name, his account number, the date, the amount of the check, his signature, the total deposit amount, and what else?

D

Over the period of a year, Julie's net worth decreased. Which of the following could be true? a. Julie's assets and liabilities decreased by the same amount. b. Julie's assets and liabilities increased by the same amount. c. Julie's assets increased by more than her liabilities. d. Julie's assets decreased by more than her liabilities.

D

Planning for the possibility that your home might get struck by lightning and catch on fire is part of a plan for _____. a. financing b. managing income c. managing liquidity d. protecting assets

D

Roberta's monthly bank statement says that she has a balance of 386.29, but Roberta's check register says that her balance is 370.77. Which of the following are still outstanding? I. A $78.17 check to the electric company II. A $16.15 deposit from Roberta's roommate III. A $22.67 check to the grocery store IV. A $62.65 deposit from Roberta's tax return

D

Sam invests $9,400 in a fund yielding 5.2% simple interest annually. At the same time, Pat shops around for a better interest rate and invests $9,400 in a fund yielding 6.0% simple interest annually. After seven years, how much more interest has Pat's fund earned than Sam's fund? a. $817.80 b. $3,948.00 c. $652.40 d. $526.40

D

Samantha's college runs on a trimester schedule so she receives a bill 3 times a year for tuition. Each trimester costs $1,450, and Samantha must complete 2 years of college to receive her degree. The average cost for books each trimester is $350. Approximately what will be the total cost for Samantha to get her degree? a. $4,700 b. $5,400 c. $9,050 d. $10,800

D

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

D

The Greens want to put an addition on their house 18 months from now. They will need to save $10,620 in order to achieve this goal. They set aside the same amount each month, and after a year discover they have saved $6,120. The Greens must adjust their plan in order to meet their goal, so they came up with the following options: Option A: Stay with saving the original amount each month but put the addition on one month later than originally planned. Option B: Increase the amount of money they save each month by $120 from their original plan. Which of the following statements is true? a. Only option A will allow them to meet their goal. b. Only option B will allow them to meet their goal. c. Both options A and B will allow them to meet their goal. d. Neither option A nor option B will allow them to meet their goal.

D

The following table shows the assets and liabilities of the Chang family in 2007 and 2008. 2007 2008 home valued at $315,000 home valued at $325,000 mortgage of $265,000 mortgage of $240,000 car valued at $10,000 car valued at $6,000 car loan of $5,000 car loan of $1,000 savings of $2,000 credit card debt of $1,500 Based on the table, which of the following is true? a. From 2007 to 2008, both assets and liabilities decreased. b. From 2007 to 2008, both assets and liabilities increased. c. From 2007 to 2008, assets decreased and liabilities increased. d. From 2007 to 2008, assets increased and liabilities decreased.

D

To be able to go on the band trip, four band members each get a part-time job. Each person has 5 weeks in which to save his or her money. Analyze the four individual plans below and decide which of the four people will reach his or her goal of saving $285? Member A: Works 8 hours per week at $6.15 per hour Member B: Works 10 hours per week at $5.85 per hour Member C: Works 7 hours per week at $7.25 per hour Member D: Works 9 hours per week at $6.35 per hour a. A and B b. A and C c. B and C d. B and D

D

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

D

Tyrone's hourly wage is $18 and his net pay is 72% of his earnings. Tyrone spends about $1,800 on his monthly expenses. If Tyrone works 40 hours per week and has no other sources of income, what is his total monthly cash inflow? (Hint: Assume that there are 4 pay periods per month.) a. $273.60 b. $1,080.00 c. $1,800.00 d. $2,073.60

D

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.

D

What should be included in a financial plan to protect assets? a. how much money you will make b. how much money you will have in savings c. how much money you will invest d. how much insurance you will carry

D

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.

D

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

D

Which of the following is always a true statement? a. total employee benefits - total job expenses = total employment compensation b. gross pay + total job benefits = total employment compensation c. gross pay - total job expenses = total employment compensation d. total job benefits - total job expenses = total employment compensation

D

Which of the following is most likely missing from your financial plan if you are not prepared for an emergency? a. financing b. a budget c. investments d. savings

D

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

D

Which of the following items are elements of a monthly checking account statement? I. A period (beginning date and ending date) II. A beginning balance and ending balance. III. A detailed list of debits and credits during the period.

D

Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000? Recreational Vehicle valued at $110,000. Car valued at $27,000. Medical bills totaling $8,700. Loan balance of $80,000. Savings of $5,000. Retirement fund of $50,000. Credit card balance of $2,300. a. recreational vehicle value decreasing to $100,000 b. borrowing $10,000 more in loans c. withdrawing $20,000 from the retirement fund d. adding $1,000 in credit card debt

D

Which of the following modifications to the list of assets and liabilities below would result in a positive net worth? Home owned $105,000. Mortgage owed $100,000. Car valued at $26,000. Car loan of $22,000. Investment fund of $4,500. Savings of $1,500. Credit card balance of $15,000. a. Lowering mortgage by $1,000. b. Increasing investment fund by $500. c. Adding $100 to savings. d. All of the above.

D

Medicare

Medicare is a social insurance program focused on providing medical insurance to individuals 65 or older, or who meet specific criteria.

Which of the following modifications to the list of assets and liabilities below would result in an increase in net worth? Cash of $300. Car valued at $28,000. Car loan of $22,000. Motorcycle valued at $6,000. Savings of $2,000. Credit card balances of $4,000. Student loan of $10,000. a. putting $100 in savings b. paying $100 on credit cards c. getting paid $100 d. all of the above

D

Which of the following should one consider when choosing a career? a. the potential earnings b. the work environment c. the required education d. all of the above

D

Which of the following spreadsheets shows the financial plan with the greatest net cash flow? a. 2335 b. 2260 c. 2380 d. 2055

D

Which of these is an example of an employer using benefits to encourage employees to stay with the company? a. The employer provides paid time off, which the employee must use in the calendar year. b. The employer provides benefits which are in line with the standard benefits provided by other employers in the industry. c. The employer matches the amount of money that the employee pays towards Social Security. d. The employer offers stock options, which require the employee to work for a specific amount of time before they vest.

D

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.

D

Your friend has prepared his monthly budget and asks you if he has overlooked anything in this planning. Which of the following questions points out his most serious omission? a. What if your income from stocks is lost? b. What if you need to go to the doctor? c. What if the electric bill increases? d. What if you need to replace the furnace?

D

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.

D.

After being involved in a car accident last month, Ralph's insurance company has increased his annual premium by $105.38. Approximately what change will Ralph see on his future monthly statements as a result of the change? a. Ralph's monthly insurance payment will not change. b. Ralph's monthly insurance payment will increase by $8.78. c. Ralph's monthly insurance payment will increase by $17.56. d. Ralph's monthly insurance payment will increase $105.38.

D.

Cesar's annual homeowners insurance premium is $972.80. If his home is valued at $253,000, roughly how much is Cesar paying for homeowners insurance? a. $0.13 per $100 of value b. $0.19 per $100 of value c. $0.26 per $100 of value d. $0.38 per $100 of value

D.

In many cases, lenders allow homeowners to include their homeowners insurance premium with their monthly mortgage payment. Tim's home is worth $279,500. If his homeowners insurance premium is $0.33 per $100, how much is added to his monthly mortgage payment for insurance? a. $7.69 b. $76.86 c. $92.35 d. $922.35

D.

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?

D.

Jeremy is 29 years old and in good health. What is the annual premium for the cheapest policy having a $90,000 face value that Jeremy can buy?

D. $1,643

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?

D. $24

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?

D. $6,644

Lamar, age 43, wants to pay no more than $1,000 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $12.59, what is the largest whole life policy he can buy without spending more than $1,000 annually?

D. $79,000

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?

D. 20-year term policy

Which group or groups can typically draw benefits that are funded by Social Security taxes? I. Disabled workers II. Laid-off workers III. Family members of deceased workers

D. I and III

Which of the following statements describes a part of a reasonable method for increasing the amount of savings in the budget.

Find a way to reduce "Non-Essential Expenses" in the monthly budget.

Robert makes $951 gross income per week and keeps $762 of it after tax withholding. How many allowances has Robert claimed?

Four

How is email a useful component of online banking?

I and II only

How is email a useful component of online banking? I. Email alerts can be used to warn you before you overdraw your account. II. You can have your bank statements emailed to you, getting them to you faster. III. Only emailed bank statements can be used to support electronically-filed tax returns.

I and II only

Isabelle has $84.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 22.35 --- Tuesday 47.60 10.29 Wednesday 15.44 --- Thursday 11.25 --- Friday 9.78 22.69 Saturday 30.54 18.86 On which day or days does Isabelle get charged an overdraft fee? I. Thursday II. Friday III. Saturday

I and III

Which group or groups can typically draw benefits that are funded by Social Security taxes? I. Disabled workers II. Laid-off workers III. Family members of deceased workers

I and III

Ben is looking at banks for checking and savings accounts. Some offer car loans and others do not. Ben may need a car loan sometime in the next few years. But Ben wonders if he should really ask what kinds of loans the bank makes, because he is getting a checking account, not a car loan. Which statement below gives the best reason for Ben to consider loan availability in choosing a checking account?

If he needs a car loan in the future, he will have a relationship of trust with the bank.

Which of the following forms of I.D. is not an acceptable form of I.D. for opening a savings account?

Library card

managed care plan

Managed care plans are plans that are composed of medical professionals whose aim is to reduce the cost of medical treatment while providing a high level of health care through the subsidies of regular premiums to insurance companies.

Mariah is putting $5,270 into an account earning 3.75% interest compounded quarterly. She estimates that it will take just over 9 years for this investment to grow to $8,000. Which of the following is a true statement?

Mariah's estimate of the time is too low

Mary has a large sum of money to deposit, but since she has heard many stories from her grandmother about the Great Depression, when many banks lost their customers' deposits, she is worried that the bank might not keep her money safe. Give Mary some recommendations about what she can do to make sure that her money stays protected.

Mary should make sure to choose a bank that is FDIC insured. Furthermore, if she has more than maximum deposit insurance amount to deposit, she should spread her deposits out among several separate banks. These should be totally different banks, not simply different branches of the same bank. The FDIC will insure up to the maximum deposit insurance amount at each bank, even if the bank fails.

Which of the following statements accurately describes the result of an increasing worker-per-beneficiary ratio in the Social Security system?

More 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.

Why is it sometimes easier to open an account with a bank rather than with a credit union?

Most credit unions require some kind of affiliation, but banks will let anyone with money open an account.

Which of the following is not a way health insurance helps to save you money?

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.

For each of the following wages, determine the Medicare tax that would be withheld.

NOT (D) i. $1,466.92 ii. $5,518.00 iii. $10,297.58

Which group or groups can typically draw benefits that are funded by Social Security taxes?

NOT I and II

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $235,430. Use $106,800 for maximum taxable earnings.

NOT Social Security tax: $14,596.66, Medicare tax: $3,413.70

Which of the following is a benefit Social Security does not offer?

NOT survivor insurance

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?

NOT $260.50 because this is what the employer is paying Try: $145.50

Which of the following characteristics does apply to Medicare Part A but does not apply to Medicare Part B?

NOT Available to the spouse of beneficiaries

Which of the following is not something that you could do with a normal checking account?

NOT B

Which of the following is not protected by the FDIC?

NOT Checking accounts

Which of the following is not a way in which the Federal Reserve ("the Fed") and its policies affect banks?

NOT The Fed determines at what price banks must lend money to one another

Consider the following incomplete deposit ticket: Which of the following are possible amounts for the third check and the cash that Cindy deposited?

NOT no cash and a $303.68 check

Todd and his wife are having company for dinner so he is tasked with stopping at the store to buy creamer for coffee and something for dessert. The creamer is in the far left corner of the store. As Todd is walking back to get the creamer he sees a sign for cookies that says "Just like grandma used to bake", and the bag has a picture of a woman that reminds Todd of his grandmother. Todd buys the cookies for dessert. Todd's purchase was least likely a result of _____.

NOT the location of the creamer

Sue's bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: Transaction Cost ($) Rent 353.76 Video game 32.79 Bike maintenance 60.26 Jacket 55.62 Rug 80.40 Night out 35.77 Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this?

No, making that purchase will overdraw her account.

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.

Not A. Eva would have been better off selecting the 20-year term policy.

Which of the following items may be a good consideration in selecting a bank?

Number of ATMs or bank branches near where you live, shop, work, or travel and knowledge of personal usage habits and needs

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $56,010.

Social Security tax: $3,472.62, Medicare tax: $812.15

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $125,000.

Social Security tax: $6,621.60, Medicare tax: $1,812.50

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?

Stacy's employer is withholding too little for state income tax.

Based upon past experience, Bill expects to accidentally overdraft the account 2 times per year, unfortunately, due to unexpected charges and miscommunications. He expects no 2nd copies of statements, and to use network ATMs 4 times per month with State Bank (due to less in-network ATMs being available), or 2 times per month with Common Bank. He has $2500 to deposit to an emergency savings account for overdraft protection, and thinks that the balance will be enough to cover most all overdrafts in the future if automatic transfers are made when needed. Based on the tables of fees, which bank is expected to cost the least amount in fees per year?

State Bank is expected to cost the least.

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?

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.

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. Which would be the most economical way for the couple to purchase health insurance? (the additional 10% is a trick)

Stephanie should add Jim to her health care plan.

A point of sale transaction occurs when an ATM withdrawal is made.

T

Anna is choosing a bank and a checking account. She would be well-advised to consider her personal needs and values in the analysis, not only the bank's features.

T

Ted is a single guy who's living the good life. The spreadsheet below shows Ted's cash flow for a month. Based on his monthly cash flow, explain what part of Ted's financial plan might be missing and why.

Ted's net cash flow is zero. Therefore, he might want to work on managing his income better so that he can have and maintain a positive net cash flow. There is also no indication that he is putting money into a savings account. He might want to work on his plan for managing his liquidity so he is prepared for an emergency.

term life insurance

Term life insurance is life insurance that offers protection for a fixed amount of time, usually 1, 5 or 10 years.

Which of the following government agencies does not regulate banking or financial markets?

The FCC

Why does the FDIC place a limit on the amount of money it will insure?

The FDIC has only limited reserves.

Why is it important to choose a bank that is a member of the FDIC?

The FDIC is a government bureau that insures the money that customers deposit in the bank, so your money is safer in an FDIC bank.

FDIC

The FDIC or Federal Deposit Insurance Corporation supervises state-chartered banks that are not members of the Federal Reserve System (Fed), and insures deposits at banks and savings and loans.

FED

The Fed or Federal Reserve System supervises state-chartered banks that are members of the Federal Reserve System.

FICA

The Federal Insurance Contributions Act tax, or FICA tax, is a tax placed on wages to fund Social Security and Medicare.

IRS

The Internal Revenue Service (IRS) is a branch of the federal government that oversees the collection of taxes.

NCUA

The National Credit Union Administration or NCUA charters and supervises federal credit unions and insures deposits at federal credit unions and many state credit unions through NCUSIF (National Credit Union Share Insurance Fund).

OCC

The OCC or Office of the Comptroller of the Currency charters and supervises national banks. If the word 'national' appears in the name of a bank, or the initials "NA' follow its name, the OCC oversees its operations.

Which of the following government agencies regulates financial markets?

The OTS

2 3 4 6 7 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 the carrier

a

Annie wants to make a deposit into her savings account. She is depositing 3 checks, one for $50.32, another for $324.89, and finally one for $753.15. She would like to receive $137.82 in cash after the deposit. Calculate the amount that she will be depositing into her savings account. a. $990.54 b. $1,299.18 c. $1,229.54 d. $1,091.18

a

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

a

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

a

Marco is reconstructing his expenses for the past two weeks. Here are the records of his expenses: Transaction Cost ($) T-shirt 20 Gas 22 Movie 13 Video game 39 Jeans 34 Hat 15 Books 31 Marco's bank statement says that he has an ending balance of $81. What is Marco's starting balance? a. $255 b. $93 c. $174 d. $210

a

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

a

Susan is paying $0.30 per $100 on her $483,000 home in homeowners insurance annually. If her annual homeowners insurance premium is divided into twelve equal monthly installments to be included on each of her monthly mortgage payments of $2128.00, what is her total monthly payment

a

The Long family spent $38.62 for school supplies and $215.78 for new school clothes. They paid 2007-03-04-00-00_files/i0110000.jpg% sales tax on their purchases. If the Long family paid $269.07 total, determine if they paid the correct amount. a. The Long family paid $2.63 too little for their purchases. b. The Long family paid the correct amount for their purchases. c. The Long family paid $1.61 too much for their purchases. d. The Long family paid $2.63 too much for their purchases.

a

The auto insurance plans available from Fret-No-More Auto Insurance are outlined in the table below. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the cheapest insurance plan available from Fret-No-More that is considered full coverage?

a

The book store is having a sale where all hardcover books are 20% off. Jamie also has a coupon for 15% off any fiction book. Jamie buys a hardcover fiction book that is priced $32.99. How much will Jamie save by buying the book on sale and using the coupon? a. $10.56 b. $11.55 c. $13.20 d. $19.79

a

The following list shows the items and prices for a restaurant order. Calculate the total amount if there is 7.5% tax and the customer leaves a 15% gratuity. 1 appetizer: $8.99 2 entrees: $14.99 each 1 entree: $12.99 3 drinks: $1.99 each a. $70.96 b. $71.62 c. $75.31 d. $75.97

a

The table below lists the insurance options offered by AA Auto Insurance. Calculate the monthly payment for an insurance plan including the following options: Bodily Injury: $50/100,000 Property Damage: $100,000 Collision: $500 deductible Comprehensive: $100 deductible

a

Which of the following statements accurately describes the result of an increasing worker-per-beneficiary ratio in the Social Security system?

a

Which of the following statements best describes the difference between sales tax and property tax?

a

A major concern with Social Security is the possibility that funds will not be available when today's tax-payers retire to become beneficiaries. According to the Social Security Trustee's report, an increase of 1.89% in the Social Security payroll tax would keep the account full for the next 75 years. To achieve similar results, benefits would have to be decreased from the current 42% of the ending salary to 29% of the salary. Cindy is relatively new to the workforce. She has 32 years until she can retire. Her current annual salary is $45,000. 1a) Calculate how much Cindy will have to pay in Social Security tax (6.2%) based on this salary. 1b) Calculate how much Cindy will have to pay in Social Security tax if the tax was increased by 1.89%. 2a) Calculate Cindy's annual Social Security benefit (about 42%) if her salary remains unchanged until she retires (annual average is $45,000). 2b) Calculate Cindy's annual Social Security benefit if her salary remains unchanged but benefits (based on her annual salary of $45,000) were cut from 42% to 29%. 3) If Cindy were given a choice between the increase in Social Security tax now or the decrease in Social Security benefits when she retires, which would you recommend she choose? Explain your answer thoroughly.

a) $45,000 * 0.062 = $2,790 1b) 6.2% + 1.89% = 8.09%; $45,000 * 0.0809 = $3640.50 2a) $45,000 * 0.42 = $18,900 2b) 42% - 13% = 29% $45,000 * 0.029 = $13,050 3) You should probably recommend she pay the extra taxes now. If the tax were increased by 1.89%. Cindy would have to pay an extra $3640.50 - $2,790 = $850.50 per year for the 32 years before she retires. This adds up to $27,216 over the length of 32 years. On the other hand, if benefits were decreased from 42% of her salary to 29% of her salary the time of Cindy's retirement (approximations), she would receive $18,900 - $13,050 = $5,850 less per year after she retires. This adds up to $58,500 in just 10 years.

Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More?

a.

In addition to general medical services, Holly would like to add dental and vision options to her health care plan. The monthly premium for her medical insurance is $345 of which her employer pays 65%. Her employer also offers to pay 50% of the monthly dental premium of $38 and 75% of the $23 monthly premium for the vision plan that is offered. If Holly opts for both the dental and vision options in addition to her regular health insurance, what will her total monthly premium be?

a. $145.50

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.

a.

Health insurance helps to protect you from financial loss by _____.

a.

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

a.

In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below. Leroux Health Insurance Plan A Proposed Changes Cost: Monthly Premium: $248.00 $203.00 Annual Deductible: $ 5,500.00 $8,500.00 Co-pays: Brand-name Prescriptions $35.00 $30.00 Generic Prescriptions $15.00 $10.00 Visits: Primary Care Physician: $40.00 $30.00 Specialist: $60.00 $45.00 Urgent Care: $125.00 $90.00 Emergency Room: $325.00 $250.00 If Kevin is currently insured under Leroux for his medical insurance under Plan A, how will the proposed changes affect his health care costs? a. Costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured. b. Costs for regularly scheduled health care will go up, but Kevin will probably pay less than he would have if he finds himself seriously ill or injured. c. Both the cost for regularly scheduled health care and the cost for emergency health care will go down, making the changes very good for Kevin. d. Both the cost for regularly scheduled health care and the cost for emergency health care would go up, contradicting the intentions of Leroux Insurance.

a.

Leroux Health Insurance

a.

Susan is paying $0.30 per $100 on her $483,000 home in homeowners insurance annually. If her annual homeowners insurance premium is divided into twelve equal monthly installments to be included on each of her monthly mortgage payments of $2128.00, what is her total monthly payment? a. $2,248.75 b. $2,409.75 c. $3,381.00 d. $3,577.00

a.

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.

Which of the following is something that will not affect your homeowners insurance premium?

a.

Rachel just purchased a homeowners insurance policy for her new home that costs $0.43 per $100. Her home is worth $387,500. What is Rachel's annual homeowners insurance premium?

a. $1,666.25

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

Sherita, age 37, wants to pay no more than $750 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $3.96, what is the largest 15-year term policy she can buy without spending more than $750 annually?

a. $189,000

Susan is paying $0.30 per $100 on her $483,000 home in homeowners insurance annually. If her annual homeowners insurance premium is divided into twelve equal monthly installments to be included on each of her monthly mortgage payments of $2128.00, what is her total monthly payment?

a. $2,248.75

Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More?

a. $473.16

When shopping for life insurance, you should look for:

a. A company with a low premium rate and a good rating.

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.

a. Eva would have been better off selecting the 20-year term policy.

Sally just purchased a beautiful home on a riverbank for what she thought was a very good deal. She later learned that her house was very susceptible to flood damage during the rainy season. Which of the following statements best describes the effect the location of Sally's new home will have on her homeowners insurance premium?

a. Financial loss due to flood damage is likely. Her insurance premiums will be higher than homes not on the waterfront.

Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan?

a. PPO insurance plans offer a wider choice of primary care doctors and specialists.

Tracy was involved in an accident in which the other driver suffered severe injuries. The police determined that the accident was Tracy's fault. Tracy is fully insured through her insurance company. Which of the following components of Tracy's insurance policy will cover the injuries of the other driver?

a. bodily injury

In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change? a. $12.48 b. $31.31 c. $149.75 d. $275.75

a. $12.48

The auto insurance plans available from Fret-No-More Auto Insurance are outlined in the table below. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the cheapest insurance plan available from Fret-No-More that is considered full coverage?

a. $473.16

The auto insurance plans available from Fret-No-More Auto Insurance are outlined in the table below. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the cheapest insurance plan available from Fret-No-More that is considered full coverage? a. $473.16 b. $490.72 c. $715.33 d. $732.89

a. $473.16

The table below lists the insurance options offered by AA Auto Insurance. Calculate the monthly payment for an insurance plan including the following options: Bodily Injury: $50/100,000 Property Damage: $100,000 Collision: $500 deductible Comprehensive: $100 deductible

a. $50.04

After reviewing her driving record for the past 3 years, Cindy's insurance company offers her a good driver discount of 4.5%. Her original policy was based on the premiums listed below. What is her new annual premium including the discount? a. $504.24 b. $523.50 c. $528.00 d. $551.76

a. $504.24

According to the graph below, what percent of the Simpsons' annual expenses is state taxes? a. 10% b. 14% c. 24% d. 34%

a. 10%

According to the chart below, what percentage of Ralph's expenses are items other than taxes? a. 65% b. 71% c. 75% d. 94%

a. 65%

Because Aaron, age 32, is a smoker, he must pay more for life insurance. Given that Company A charges 20% more for smokers, Company B charges 18% more for smokers, Company C charge 25% more for smokers and Company D charges 15% more for smokers, Aaron decides to buy his $250,000 policy from Company B. Which of the following statements is true?

a. Aaron is paying the smallest premium possible with Company B.

One possible solution to a diminishing Social Security payroll is to increase the Social Security tax by 1.89%. How would such an increase effect the tax on an annual salary of $54,000?

a. Annual tax would increase by $1,020.60.

In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below. If Kevin is currently insured under Leroux for his medical insurance under Plan A, how will the proposed changes affect his health care costs?

a. Costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured.

The Murphys' gross annual family income is $120,500. Mr. Murphy referred to the graph shown below and calculated that his family will spend $28,920 on taxes this year. What is wrong with Mr. Murphy's calculation? a. He has calculated only federal taxes. b. He has calculated only state taxes. c. He does not need to include federal taxes. d. He does not need to include state taxes.

a. He has calculated only federal taxes.

Which of the following statements accurately describes the result of an increasing worker-per-beneficiary ratio in the Social Security system?

a. More 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.

Which of the following statements best describes the difference between sales tax and property tax? a. Sales tax is applied to items as they are purchased while property tax is applied to items already owned. b. Sales tax is applied repeatedly while property tax is paid only once for as long as you own the item. c. Sales tax can be applied to a new speed boat while property tax cannot. d. Sales tax is strictly meant for food and consumables while property tax is meant for non-food items.

a. Sales tax is applied to items as they are purchased while property tax is applied to items already owned.

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $35,400.

a. Social Security tax: $2,194.80, Medicare tax: $513.30

Which of the following is a benefit Social Security does not offer?

a. automobile insurance

Tracy was involved in an accident in which the other driver suffered severe injuries. The police determined that the accident was Tracy's fault. Tracy is fully insured through her insurance company. Which of the following components of Tracy's insurance policy will cover the injuries of the other driver? a. bodily injury b. property damage c. collision d. comprehensive damage

a. bodily injury

In auto insurance, a lower deductible means the customer _____.

a. has a higher monthly bill, but pays less out of pocket in the event of an accident.

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

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?

a. Budget A

Select the budget that would most quickly achieve the financial goal of saving $6000 for college tuition.

a. Budget A

Sofia still lives at home, but helps with the rent paying $200 per month. She has a job that pays about $700 per month after taxes. She has to pay for her own personal items such as clothing and toiletries spending about $120 per month. Going out with friends is important to her, but she also wants to save money to buy her own car. Select the budget that would best help meet her goals.

a. Budget A

Maddox wants to go back to college full-time. His current employer has agreed to reduce his hours from 40 hours to 25 hours while retaining his current rate of pay. Maddox has lived in his own apartment for 1 year and really likes his independence. Which of the following budgets below would fit his new situation?

a. Modified Budget A

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.

Calculate the income needed based on the following budgeted expenses.

a. The income would need to be at least $1000.

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.

b

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%

b

Adam's bank account has a balance of $1213.69 before he starts spending money. He makes the following transactions: Transaction Cost ($) Car payment 260.16 Groceries 97.98 Parking ticket 75.00 DVD box set 115.35 Antique lamp 68.53 Suit 331.84 Adam is considering getting his car a new paint job. Doing so will have a total cost of $264.83. Can Adam afford this? a. Yes, he can make the purchase and still have money left over. b. Yes, but doing so will clear out his account. c. No, purchasing that would overdraw his account. d. No, he is overdrawn already.

b

Angelo purchased some gifts for his younger brothers and sisters online. He bought a dollhouse for $32.59, 2 board games for $12.95 each and 2 movies for $9.99 each. The web site had a promotional offer of $5 off and no shipping fees for any purchase totaling at least $50. Angelo was charged 7.25% tax on his total purchase. How much did Angelo pay for his online purchase? a. $78.47 b. $78.80 c. $79.16 d. $84.16

b

Choose the circumstances in which a debit card can be used. I. Point-of-sales transactions II. ATM withdrawals a. I only b. II only c. I and II d. Neither I, nor II

c

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

b

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.

b

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

b

Sally's employer pays for 38% of her annual health insurance premium of $4,350.00. Sally pays the remaining balance by having it deducted in equal amounts from her 26 paychecks throughout the calendar year. How much will Sally have deducted from each paycheck

b

Sally's employer pays for 38% of her annual health insurance premium of $4,350.00. Sally pays the remaining balance by having it deducted in equal amounts from her 26 paychecks throughout the calendar year. How much will Sally have deducted from each paycheck?

b

Sam is thinking of retiring from his job after many years of faithful service. During the last 35 years at his job, his annual salary averages to $37,991. Every month, his bills total $1,755. How much money would Sam need each month to supplement his monthly Social Security benefit (assuming his annual benefit is 42% of his salary average) and still be able to pay his bills

b

Sarah pays $48.00 each month to keep her house insured. If her house is valued at $223,050, about how much is Sarah paying per $100 in homeowners insurance annually

b

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.

b

Select the correct statement and rationale relating the interest rates of online banks to those of traditional banks. a. Online banks offer greater interest rates than traditional banks because they are more risky, b. Online banks offer greater interest rates than traditional banks because they have lower overhead costs. c. Online banks offer lower interest rates than traditional banks because they have not had enough time to establish themselves. d. Online banks offer lower interest rates than traditional banks because that is the cost of convenience.

b

Social Security and Personal Income tax are called Payroll taxes because _____.

b

Some online banks offer "online bill pay." What does this mean? a. There is a fee associated with online banking, but the bank will waive that fee as an incentive. b. You can visit your bank account online and electronically transfer funds to pay your bills. c. The bank will automatically pay your internet bill as a reward for banking with them. d. You can use that bank account, and only that bank account, to pay for purchases you make online.

b

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?

b

Stephanie has a homeowners insurance policy for her $355,000 home with an annual premium of $0.42 per $100 of value and a deductible of $500. Under this policy, in the event of a major mishap, Stephanie would have a total annual out-of-pocket expense of 2007-06-04-00-00_files/i0240000.jpg. Stephanie would like to lower her premium by increasing her deductible. If Stephanie wants to increase her deductible to $1000, what annual premium would result in an annual out-of-pocket expense that is about the same as her current plan?

b

Tax returns filed manually have a 20% chance of containing errors, while tax returns filed electronically have a 0.05% chance of containing the same. If 2.7 million tax returns are filed each way, how many more erroneous manually filed returns will there be than erroneous electronically filed returns

b

Tax returns filed manually have a 20% chance of containing errors, while tax returns filed electronically have a 0.05% chance of containing the same. If 2.7 million tax returns are filed each way, how many more erroneous manually filed returns will there be than erroneous electronically filed returns?

b

Ted is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Ted's spending pattern: Day Debit ($) Credit ($) Monday 112 --- Tuesday 141 18 Wednesday 56 --- Thursday 28 70 Friday 22 42 Saturday 16 88 If the bank charges Ted an overdraft fee of $25 every time he overdraws his account, and Ted overdrew his account on Wednesday but not on Friday, which of the following is a possible amount of money that Ted could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees. a. $300 b. $280 c. $240 d. $200

b

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

b

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?

b.

The health care Jimmy's employer offers is a fee-for-service plan in which Jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. Jimmy and his family have several health related issues that demand $685.00 each month. If one of Jimmy's children were to become seriously injured at the end of the year, how much would the related health costs need to be in order for the insurance company to assume responsibility?

b

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

b

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

b

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

b

What does it mean for a set of financial records to be comprehensive? a. Comprehensive records are protected against theft and fire. b. The records must contain sufficient information to cover all of your financial plan. c. At least two people must be able to view and assess the records. d. The records must contain every one of your financial files, such as pay stubs and receipts.

b

What does it mean to be "in the red?" a. You have more credits than debits. b. You have more debits than credits. c. You cannot find your financial records. d. Your financial records are inaccurate.

b

What is the basic difference between liability insurance and collision insurance?

b

What is the difference between a tax credit and a tax deduction?

b

What kind of taxes are likely to pay for universities and police?

b

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.

b

Which of the following are advantages of certificates of deposit (CDs) over savings accounts? I. CDs are more readily accessible than savings accounts. II. CDs offer greater interest rates than savings accounts. III. CDs have greater FDIC backing than savings accounts. a. I and II b. II only c. I and III d. none of these

b

Which of the following characteristics does apply to Medicare Part A but does not apply to Medicare Part B?

b

Which of the following is least likely to be kept as part of one's financial records? a. A receipt for a dishwasher. b. A receipt for groceries. c. A receipt for taxes paid. d. A receipt for insurance.

b

Which of the following statements is not something you should be thinking when considering changes in your auto insurance policy?

b

While driving recklessly, Thomas lost control of his car and accidentally drove it into the water fountain in his neighbor's front yard. Thomas is fully insured through his insurance company. Which of the following components of his insurance policy will cover the damage he caused to his neighbors fountain

b

Wyatt uses a notebook for keeping financial records. He has placed dividers in the notebook so that it has different sections. Each divider also has a pocket for keeping receipts or other papers related to the records in each section. Wyatt keeps his notebook in his locker at school. Which of the following things about Wyatt's system of record keeping provides a way to separate his financial details into different categories? a. The fact that financial records are kept in the notebook. b. The fact that the notebook.has section dividers c. The fact that the section dividers have pockets. d. The fact that the notebook is kept in his locker.

b

You have a restaurant bill of $46.32. If you are taxed 2007-03-04-00-00_files/i0260000.jpg% and decide to tip your server 20%, how much is your total? a. $59.75 b. $59.05 c. $58.92 d. $58.87

b

You will pay substantially less for life insurance if which of the following factors is true

b

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

b

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.

b

what is the difference between a co-payment and co-insurance?

b

A complete desktop computer costs $965. A replacement monitor costs $238, a replacement hard drive costs $260, a replacement outer case costs $145, labor to repair it costs $77, and shipping it to and from a repair center costs $41. A full warranty, which covers the entire cost of repairing the computer, is 35% of the purchase price. A limited warranty, which only covers internal parts and labor, costs 11% of the purchase price. If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much?

b.

A vacuum cleaner costs $68, and the full-replacement extended warranty costs $22. If the manufacturer sells 360,920 vacuum cleaners under warranty and must replace 15% of them to honor the warranties, how much will the replacement costs be?

b.

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. 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.

b.

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

b.

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? a. $1,290 b. $1,202 c. $6,010 d. $820

b.

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.

b.

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? a. $234,000 b. $158,000 c. $11,000 d. $567,000

b.

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? a. $1,945,000 b. $972,000 c. $789,000 d. $806,000

b.

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?

b.

The extended warranty on a ceiling fan is 18% of the purchase price. If the price of the fan is $140, how much is the warranty? a. $7.78 b. $25.20 c. $18.72 d. $12.86

b.

The health care Jimmy's employer offers is a fee-for-service plan in which Jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. Jimmy and his family have several health related issues that demand $685.00 each month. If one of Jimmy's children were to become seriously injured at the end of the year, how much would the related health costs need to be in order for the insurance company to assume responsibility?

b.

What does it mean for a manufacturer's warranty and an extended warranty to overlap?

b.

What is the difference between a co-payment and co-insurance?

b.

What kind of warranty is often offered not through the manufacturer but instead through a third party?

b.

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?

b. $1,202

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?

b. $145.50

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?

b. $158,000

The health benefits Tom receives from his employer cover 43% of the total monthly premium of $345.00. How much does Tom have to pay each month?

b. $196.65

What is the difference between a co-payment and co-insurance?

b. A co-payment is a flat fee for each service, and co-insurance is based on a percentage of the costs incurred.

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.

b. Stephanie should add Jim to her health care plan.

Choose the proper rationale. "In the compound interest equation, time (the variable t) has the biggest effect on the outcome because..."

c

Zach is looking for a homeowners insurance policy for his new house. AAA Insurance company has offered him a plan that insures his home annually for $0.36 per $100 of value in the home. In order to make calculations easier, Thompson's Insurance lists their annual homeowners insurance premium a bit differently, at $3.63 per $1,000 of value in the home. Zach's house is worth $289,000. What should Zach be thinking as he chooses between the two insurance companies?

b. The annual premium for his house would be cheaper through AAA.

Which of the following statements is not something you should be thinking when considering changes in your auto insurance policy?

b. The premium you pay guarantees that you will never have to pay more than your deductible in the event of an accident.

You will pay substantially less for life insurance if which of the following factors is true?

b. You are in good health.

Julien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Which component of Julien's insurance plan will cover the damage he caused to the other car?

b. property damage

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?

b. $158,000

Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is $50,760. Assuming that he will recieve 42% of his average annual salary, what will be his annual Social Security benefit?

b. $21,319.20

A vacuum cleaner costs $68, and the full-replacement extended warranty costs $22. If the manufacturer sells 360,920 vacuum cleaners under warranty and must replace 15% of them to honor the warranties, how much will the replacement costs be?

b. $3,681,384

Mauro just won $1,000,000 from the lottery! Despite his excitement in winning a tremendous amount of money, his brother (who is an accountant) warns him not to spend it all at once and hands him this tax rate schedule for single taxpayers. How much extra does he have to pay in federal taxes because he won the lottery? a. $5,048.75 b. $336,100.50 c. $341,149.25 d. $676,260.76

b. $336,100.50

In an effort to reduce cost on auto insurance, Sophia has lowered each component of her current plan to the cheapest possible option. Sophia's current insurance agency is Fret-No-More Auto Insurance, whose policy options are listed below. The annual premium for Sophia's current policy is $511.31. What decrease in her annual premium will Sophia see after the change?

b. $38.15

In an effort to reduce cost on auto insurance, Sophia has lowered each component of her current plan to the cheapest possible option. Sophia's current insurance agency is Fret-No-More Auto Insurance, whose policy options are listed below. The annual premium for Sophia's current policy is $511.31. What decrease in her annual premium will Sophia see after the change? a. $20.59 b. $38.15 c. $57.10 d. $60.88

b. $38.15

The health care Jimmy's employer offers is a fee-for-service plan in which Jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. Jimmy and his family have several health related issues that demand $685.00 each month. If one of Jimmy's children were to become seriously injured at the end of the year, how much would the related health costs need to be in order for the insurance company to assume responsibility?

b. $4,280.00

Below is a graph of the Murphys' annual expenses. How much will the Murphys' pay in state/local taxes if their gross annual household income is $85,420? a. $3,559.17 b. $8542.00 c. $20,500.80 d. $29,897.00

b. $8542.00

Sam is thinking of retiring from his job after many years of faithful service. During the last 35 years at his job, his annual salary averages to $37,991. Every month, his bills total $1,755. How much money would Sam need each month to supplement his monthly Social Security benefit (assuming his annual benefit is 42% of his salary average) and still be able to pay his bills?

b. At least $425.32

Which of the following statements best describes the relationship between federal and state income taxes? a. State income tax is based on your annual income while federal income tax is generally a specific percentage of state. b. Federal income tax is based on your annual income while state income tax is generally a specific percentage of federal. c. Federal income tax is based on your annual income while state income tax is determined by the number of children the taxpayer has d. There is no relationship between federal and state income taxes. They are calculated indepedently from one another.

b. Federal income tax is based on your annual income while state income tax is generally a specific percentage of federal.

What is the basic difference between liability insurance and collision insurance?

b. Liability insurance covers damage that you cause, and collision insurance covers damage done to your vehicle.

What is the basic difference between liability insurance and collision insurance? a. Liability insurance covers only medical injuries, and collision insurance covers only property damage. b. Liability insurance covers damage that you cause, and collision insurance covers damage done to your vehicle. c. Liability insurance is optional, but most states require collision insurance. d. Liability insurance protects against theft or vandalism, and collision insurance covers against accidents or crashes.

b. Liability insurance covers damage that you cause, and collision insurance covers damage done to your vehicle.

After being involved in a car accident last month, Ralph's insurance company has increased his annual premium by $105.38. Approximately what change will Ralph see on his future monthly statements as a result of the change?

b. Ralph's monthly insurance payment will increase by $8.78.

After being involved in a car accident last month, Ralph's insurance company has increased his annual premium by $105.38. Approximately what change will Ralph see on his future monthly statements as a result of the change? a. Ralph's monthly insurance payment will not change. b. Ralph's monthly insurance payment will increase by $8.78. c. Ralph's monthly insurance payment will increase by $17.56. d. Ralph's monthly insurance payment will increase $105.38.

b. Ralph's monthly insurance payment will increase by $8.78.

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.

b. Stacy's employer is withholding too little for state income tax.

Which of the following criteria would not make a person eligible to receive medicare benefits?

b. The person has a terminal illness.

Which of the following statements is not something you should be thinking when considering changes in your auto insurance policy?

b. The premium you pay guarantees that you will never have to pay more than your deductible in the event of an accident.

In auto insurance, a higher deductible means the customer _____. a. has a higher monthly bill, but pays less out of pocket in the event of an accident. b. has a lower monthly bill, but pays more out of pocket in the event of an accident. c. has a higher monthly bill and pays more out of pocket in the event of an accident. d. has a lower monthly bill and pays less out of pocket in the event of an accident.

b. has a lower monthly bill, but pays more out of pocket in the event of an accident.

Julien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Which component of Julien's insurance plan will cover the damage he caused to the other car? a. bodily injury b. property damage c. collision d. comprehensive damage

b. property damage

While driving recklessly, Thomas lost control of his car and accidentally drove it into the water fountain in his neighbor's front yard. Thomas is fully insured through his insurance company. Which of the following components of his insurance policy will cover the damage he caused to his neighbors fountain? a. bodily injury b. property damage c. collision d. comprehensive damage

b. property damage

Predict how much money can be saved without having a negative actual net income.

b. $170 can be saved resulting in an actual net income of $0.

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

b. Budget B

When preparing a monthly budget, describe how net income is calculated.

b. Net income is calculated by taking the income subtotal and subtracting the expenses subtotal.

Which of these is an appropriate attitude to take toward personal budgets?

b. Personal budgets are useful regardless of your financial status and can be used by anyone.

Tristan has found a good job as a bookkeeping clerk after finishing his associates degree at the local community college. He is making a beginning annual salary of $19,760. How can this increased income affect his financial decisions? Compare his previous budget when he worked part time while finishing his degree with his current budget after getting a full time job.

b. Tristan is earning quite a bit more in his full time job. He is spending more on rent, utilities, food, and entertainment, as well as saving $350 each month.

After being involved in a car accident last month, Ralph's insurance company has increased his annual premium by $105.38. Approximately what change will Ralph see on his future monthly statements as a result of the change?

bJulien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Which component of Julien's insurance plan will cover the damage he caused to the other car?

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

c

A family eats out at a restaurant and the total for their meals is $73.89. They also pay sales tax of 5.8% and leave a tip for their server. If the family leaves a total of $93, which of the following might be a description of the service they received? a. They left a 10% tip, so the service was probably below average. b. They left a 15% tip, so the service was probably average. c. They left a 20% tip, so the service was probably above average. d. They left a 25% tip, so the service was probably outstanding.

c

A mini laptop computer is on sale for 40% off the regular price of $450. How much is the discount? a. $18 b. $27 c. $180 d. $270

c

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

c

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 premiumBob'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

c

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.

c

According to the graph below, what percent of the Simpsons' annual expenses is Federal taxes?

c

Alissa would like to make a deposit into her savings account. She filled out a deposit ticket and handed it to the teller at her bank. The teller apologizes to Alissa and explains that she cannot accept the deposit ticket in its current form. Determine what, if anything, Alissa will have to change in order for her deposit ticket to be accepted. 2007-04-04-00-00_files/i0060000.jpg a. The sub total is calculated incorrectly b. Alissa forgot to sign the deposit ticket for less cash back c. The total is calculated incorrectly d. Alissa forgot to date the deposit ticket

c

An appliance store is having a liquidation where everything in the store is 70% off the regular price. What is the price of a dishwasher that is regularly $519.89? a. $36.39 b. $70.00 c. $155.97 d. $363.92

c

An expense is entered as a _____ in a financial ledger. a. balance b. credit c. debit d. savings

c

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. Using the table, find the difference in total premium costs over 20 years for this policy at the two age levels.

c

Ann needs to have money available to pay an annual renters insurance premium of $224, ten months from now. She has savings of $0 in her current budget, a retirement fund of $4,833, and a reserve fund of $0. Which of the following would NOT be part of her reasonable plan to establish a reserve fund for this expense? a. Reduce a non-essential expense to save money. b. Establish a savings account for Other Expenses. c. Pay the premium right away using the retirement fund investments. d. Divide it into a monthly savings amount, and add the savings to the budget.

c

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

c

As a part-time employee, Rachel does not qualify for any benefits from her current employer. Seeing a need for a health care program, Rachel went shopping for health insurance and is trying to decide between two options with a national health insurance provider. The benefits of each option 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. Rachel 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. Rachel is a young lady with very few health care requirements. She anticipates one monthly visit to her primary care physician, and one annual visit to her allergy specialist. She has two generic prescription allergy medicines that need to be filled twice a month. If Rachel is able to stay healthy the entire year and does not accrue any additional health care costs, which of the following statements is true for her situation?

c

Auto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance policy through AA Auto Insurance with the following options? Bodily Injury: $25/50,000 Property Damage: $25,000 Collision: $250 deductible Comprehensive: $100 deductible

c

Ben and his housemates signed a lease for an apartment for 12 months for $563 per month of which Ben agreed to pay $215 per month. Which of the following statements best gives the reasons that Ben's rent payment is an essential (fixed) expense? a. It cannot be eliminated in a later budget, in order to save money. b. Living expenses have a higher priority than any other type of expense. c. The spender controls the amount of the rent by choice of apartment. d. It is by contract the same amount every month.

c

Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income?

c

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

c

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?

c

Calculate 2007-03-04-00-00_files/i0080000.jpg% tax on $1,540. a. $11.17 b. $109.34 c. $111.65 d. $113.96

c

Chris is calculating his deductions for his tax return. He is filing singly. He can claim $1,813 from property taxes, $1,513 from medical expenses, and $761 from state income tax. The standard deduction for a single filer is $5,700. How does the standard deduction compare to Chris's deductions?

c

Cindy's apartment complex is offering renters insurance through their insurance company. The insurance company charges an annual premium of $565.00 which can be paid in equal payments throughout the year with her monthly rent. Cindy's monthly rent is currently $789.00. What will Cindy's new rent be if she includes the renters insurance?

c

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

c

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%

c

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

c

Craig is single and lives alone. He earns a respectable salary, but the bulk of his income comes from his property holdings and stock market investments. Craig is well versed in tax law and has many deductions to claim, hoping to pay the smallest amount possible. Recommend the appropriate 1040 form for Craig.

c

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

c

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?

c

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.

c

Determine the total annual FICA tax for an annual salary of $110,330. Use $106,800 for maximum taxable earnings

c

Determine what Paul will have to pay on an annual bases for his $449,000 home if his insurance company is charging him $0.41 per $100 of value in his home.

c

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

c

Gareth has $2,000 to invest. Putting the money in a savings account at his local bank will earn him 2.2% annual interest and gives him the ability to make ATM withdrawals from that bank's ATMs. Putting the money in an online savings account will earn him 4.85% annual interest, but he will be charged $3 every time he makes an ATM withdrawal. Assuming that Gareth's ATM withdrawals do not affect the amount of interest he earns, roughly how many ATM withdrawals must Gareth make every year for the local savings account to be a better deal than the online savings account? a. 8 b. 14 c. 18 d. 25

c

Given the following information, choose the brand that is the better buy. Brand A: $2.16 for 18 ounces Brand B: $1.50 for 12 ounces Brand C: $2.26 for 20 ounces Brand D: $1.95 for 16 ounces a. Brand A b. Brand B c. Brand C d. Brand D

c

Glenda makes an online purchase of 4 picture frames for $12.95 each and 4 mats for $5.89 each. The site says that taxes paid by the customer are 6.5% 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 Glenda selects express shipping for her purchase and the company bills her credit card $91.86 for the total of the online purchase. Determine if Glenda has been billed correctly for her purchase. a. Glenda has been billed correctly. b. Glenda has not been charged enough for her purchase. c. Glenda has been over charged by $3.40 for her purchase. d. Glenda has been over charged by $3.80 for her purchase.

c

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?

c

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

c

How is a debit card similar to an ATM card? a. Each is only available to adults 18 and older. b. Any one person can only have one of each at a time. c. Both can be used to withdraw money from ATMs. d. Both can be used to make purchases online.

c

How is email a useful component of online banking? I. Email alerts can be used to warn you before you overdraw your account. II. You can have your bank statements emailed to you, getting them to you faster. III. Only emailed bank statements can be used to support electronically-filed tax returns. a. I only b. II only c. I and II only d. I, II, and III

c

If 20% of all manually filed returns contain errors, and 0.05% of all electronically filed returns contain errors, how much more likely is a manual filer to make an error than an electronic filer

c

If 20% of all manually filed returns contain errors, and 0.05% of all electronically filed returns contain errors, how much more likely is a manual filer to make an error than an electronic filer?

c

If 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

c

If 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:

c

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

c

If your state has a property tax rate of 0.056, and you pay $3,164.45 in property taxes every year, what is the assessed value of your property

c

In a fee-for-service health insurance plan with a $6,500 annual deductible,

c

In a fee-for-service health insurance plan with a $6,500 annual deductible, _____.

c

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.

c

Javier's employer pays for 43% of his annual health insurance premium. Javier pays the remaining balance by having it deducted from his paychecks in equal amounts twice a month throughout the year. If $157.38 is deducted from each of Javier's paychecks, what is his total annual premium

c

Jennifer purchased a house in a brand new development in the outskirts of town. When her house was built, the nearest fire department was nearly 20 miles away. As her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. What effect will the new fire station have on her homeowners insurance premium

c

Jerry is currently insured through AA Auto Insurance, but would like to lower his auto insurance premium by at least $10 per month. His current insurance plan includes the $50/100,000 limit for bodily injury, $100,000 limit for property damage, a $250 deductible for collision, and a $50 deductible for comprehensive. Which of the following adjustments would allow Jerry to meet his goal?

c

Katherine invests $7,770 in a six-month money market account giving 5.8% simple annual interest and $12,500 in a three-year CD giving 7.25% simple annual interest. Assuming that Katherine does not reinvest or renew these investments, how much money will she have when both investments reach maturity, to the nearest dollar?

c

Ken, a single taxpayer, has a gross income of $79,685. He claims one exemption and can take a deduction of $1,257 for medical expenses, a deduction of $2,181 for interest on his mortgage, an adjustment of $800 for alimony, a deduction of $1,419 for property taxes, an adjustment of $1,722 for business expenses, and an adjustment of $2,511 for contributions to his retirement fund. The standard deduction for a single filer is $5,700, and exemptions are worth $3,650 apiece. Using the table below, how much does Ken owe in income tax?

c

Kyle uses a spreadsheet to keep track of his spending. This is an example of Kyle's spreadsheet for two months: 2007-03-03-00-00_files/i0160000.jpg Kyle thinks that he could improve this spreadsheet, but he is not sure how. Choose the statement or statements that would help Kyle's spreadsheet become more organized. I. The spreadsheet should contain at least two copies of every entry for backup purposes. II. It is hard to tell the debits from the credits. They should be in different colors, different columns, or otherwise differentiated. III. Having the dates, or at least the months, of each transaction would make things easier to find. a. I and II b. III only c. II and III d. I, II, and III

c

Leigh is the head of a household and earned $43,763 in taxable income this year. Over the course of the year, her employer withheld a total of $6322 for income tax. Based on the table below, what can Leigh expect when her taxes are due?

c

Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?

c

Looking at her paycheck, Rhonda notices that $30.56 was withheld from her last paycheck for state income stax while $122.25 was withheld for federal income tax. She knows that she indicated on her employment paperwork to set her state withholding at 21% of the federal withholding. What should Rhonda be thinking?

c

Manny makes the following purchases at the store: pair of jeans for $32.65 3 t-shirts for $14.89 each pair of sneakers for $39.99 The store is having a promotional sale where 10% is taken off of each customer's total purchase before tax. The sales tax is 8%. If Manny paid $114.03 , then he _____ for his purchase. a. paid $5.63 too little b. paid $3.28 too little c. paid the correct amount d. paid $8.45 too much

c

Mike has an adjusted gross income of $85,643. He claims two exemptions and can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. If the standard deduction is $5,700 and exemptions are each worth $3,650, what is Mike's total taxable income

c

Mike has an adjusted gross income of $85,643. He claims two exemptions and can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. If the standard deduction is $5,700 and exemptions are each worth $3,650, what is Mike's total taxable income?

c

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

c

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?

c

Mr. and Mrs. Nedage are filing a joint tax return. While listing their deductions, they find that they can deduct $2,150 from medical bills, $826 from state taxes, $3,133 from charitable donations, and $1,331 from interest on their mortgage. The standard deduction for married couples filing jointly is $8,350. How does the standard deduction compare to the Nedages' deductions?

c

Norm has $15,000 to deposit. His daughter is a junior in high school and plans to go to college. Recommend the best way for Norm to store his money. Note that the interest rates are expressed on an annual basis. a. A four-year CD paying 4.8% interest, with a substantial penalty for early withdrawal b. An online savings account offering 2.3% interest c. A money market account paying 3.5% interest, renewable for three-month commitments d. A checking account with no monthly fees

c

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

c

Orlando invested $16,000 in an eight-year CD bearing 6.5% interest, but needed to withdraw $3,500 after five years. If the CD's penalty for early withdrawal was one year's worth of interest on the amount withdrawn, when the CD reached maturity, how much less money did Orlando earn total than if he had not made his early withdrawal? a. $227.50 b. $682.50 c. $910.00 d. $455.00

c

Patrick and Susie just welcomed a set of twins to their family and have to decide how to purchase health insurance for the babies. Patrick's employer pays for 100% of his monthly health insurance premium of $378, but will not pay for any of the $280 for each additional beneficiary. Susie's employer, who pays 63% of her $403 monthly premium, offers to pay 32% of the $310 monthly premium for each additional beneficiary. Which would be the most economical way to purchase health insurance for the family

c

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?

c

Rank the 1040 forms in order from simplest to most complex.

c

Real Estate tax, a tax based on the value of the land and the buildings owned by its taxpayers, is a good example of _____.

c

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.

c

Rudy has been paying an annual homeowners insurance premium of $1,106.30 ($0.37 per $100 of value) since he first purchased his house. For the past six months, Rudy has completed some major improvements to his house to improve its overall value. If Rudy successfully adds $50,000 to the value of his house, what will his new annual homeowners insurance premium be?

c

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.)

c

Sam knows that his annual homeowners insurance premium is $0.27 per $100 of value, which usually works out to be $683.10 annually. But Sam is confused by a letter from his insurance company telling him that an increase in the value of his home has led to an increase in his annual homeowners insurance premium. He is now being charged an annual premium of $720.90. Based on the increase in his annual homeowners insurance premium, what was the increase in his home's value? (Note: The cost is still $0.27 per $100, even though the annual premium went up.)

c

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.

c

Say you are filing as a single taxpayer. You have a gross income of $61,026 and claim two exemptions. You can make a deduction of $2,871 for interest on your mortgage, a deduction of $2,376 for property tax, an adjustment of $3,206 for business losses, an adjustment of $2,575 for contributions to your retirement plan, a deduction of $2,682 for medical expenses, and an adjustment of $2,440 for business expenses. If exemptions are each worth $3,650 and the standard deduction is $5,700, what is your total taxable income?

c

Selena purchased some gifts for her nieces and nephews online. She bought 3 dolls each priced at $19.99 each and 4 remote control cars priced at $21.99 each. Selena was able to get an online coupon for $3 off on each remote control car that she purchased. There was no sales tax, but the shipping charge was $10.50. What was the total amount Selena paid for her online purchase? a. $135.93 b. $144.93 c. $146.43 d. $155.43

c

Stephen used a reconciliation worksheet, but his checkbook balance does not match the final worksheet balance. Evaluate the following list of possible errors that he has made. Decide which items could potentially correct this problem if found and corrected. Item number Name of potential error Explanation of what to verify I Clearing the checkbook All the transactions on the statement that match transactions in the checkbook should be marked as cleared in the checkbook. II Correcting checkbook omissions All transactions on the statement that were not found in the checkbook should have been entered into the checkbook. III Outstanding credits and debits Verify that the sum of outstanding credits and the sum of outstanding debits are correct. IV Math Verify that all addition and subtraction has been done correctly and there are no transpositions of numbers. V Previous reconciliation Verify that the previous reconciliation was performed correctly, and that all cleared items are marked as such in the checkbook. Choose the option below that correctly describes the items that could have caused this problem with Stephen's reconciliation. a. I, III, IV, and V could cause the problem, but not II. b. I, II, III, and V could cause the problem, but not IV. c. All five of the potential errors could cause this sort of problem. d. I and II could cause the problem since there are no math errors.

c

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie's limits the most without increasing her monthly premium by more than $5.00

c

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie's limits the most without increasing her monthly premium by more than $5.00?

c

Taking a discount of 50% off followed by a discount of 50% off results in a total discount of _____. a. 25% b. 50% c. 75% d. 100%

c

Tara and Levi are trying to decide between homeowners insurance policies offered by two different agencies. AAA Insurance has offered to insure their home for an annual premium of $0.38 per $100 with a $500 deductible. Thompson's Insurance has offered to insure the same home for an annual premium of $0.26 per $100 with an deductible of $1,000. Insurance Company Annual Premium (per $100) Deductible AAA Insurance $0.38 $500 Thompson's Insurance $0.26 $1,000 The house Tara and Levi purchased is valued at $425,000. Which of the following statements accurately describes the difference between the two plans?

c

The chart below summarizes Ralph's annual expenses for the upcoming year. Based on the information in the graph, approximately what percent of his total budget will be for federal taxes?

c

There are 18 cans of peas in a case. Each can of peas is 12 ounces. If a case of peas costs $14.22, what is the unit price per can of peas? a. $0.07 b. $0.08 c. $0.79 d. $1.19

c

Theresa has $708 in her account and wishes to throw a party. She plans to include the following: Purchase Cost ($) Decorations 76.92 Catering 150.66 Musicians 242.15 Refreshments 123.36 Venue 260.47 When Theresa makes the calculations, she finds that she cannot afford everything that she would like to have. What is the cheapest aspect of the party that she can eliminate to keep from overdrawing her account? a. Venue b. Musicians c. Catering d. Refreshments

c

This account offers a good interest rate, but tends to require a certain minimum deposit. Usually, this account becomes mature in a matter of several months. You can withdraw money from this account before it becomes mature without penalty, but there is a limit to how frequently you can withdraw it. a. Savings account b. Online savings account c. Money market account d. Certificate of Deposit

c

Tom is considering making changes to his policy to make insurance more affordable. Which of the following statements is not something Tom should consider when making changes to his policy?

c

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

c

What can you do when the unit prices for two comparable items are listed using different units of measure? a. The secondary units don't affect the cost. As long as both prices are in dollars or cents, you can compare the two. b. The unit prices are based on the cost of the whole package, so divide each base cost by each unit price to get comparable units. c. Use conversion rates to change one unit into the other unit, so that both prices are listed using like units. d. Unit prices are ratios, so you can add the two prices together and divide by the smaller unit price to get a usable number.

c

What is the standard deduction used for?

c

When shopping for life insurance, the best strategy is to:

c

Which is a step in the process of calculating successive discounts of 8% and 10% on a $50 item? a. take 2% of $50 b. take 8% of $46 c. take 10% of $46 d. take 18% of $50

c

Which method or methods listed below describe a solid system for keeping financial records? I. Making a mental note of all purchases made during the week. II. Recording money spent in a hand-held notebook. III. Organizing receipts and transactions on a computer. a. I only b. II only c. II and III d. I, II, and III

c

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

c

Which of the following is a cost homeowners insurance does not protect

c

Which of the following is an example of a wealth tax?

c

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

c

Which of the following is something that will not affect your homeowners insurance premium?

c

Which of the following is something you would not expect to see withheld from your paycheck?

c

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

c

Which of the following statements best describes the difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)?

c

Which of these can be listed as benefits of filing your tax return online? I. Allows you to claim a larger number of deductions II. Allows for faster receipt of any refunds due III. Allows for greater accuracy when filing

c

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%

c

You have $3,750 to deposit. If you deposit the money in a savings account at your local bank, you will earn 1.75% annual interest and will be able to make ATM withdrawals at your bank's ATMs. If you deposit the money in an online savings account, you will earn 3.25% interest, but you will be charged $4 every time you make an ATM withdrawal. Assuming that your ATM withdrawals do not reduce the amount of interest you earn, roughly how often must you make an ATM withdrawal for the local savings account to be a better deal than the online savings account? a. Thirteen times per year b. Once per month c. Every three weeks d. Every two months

c

You have a gross income of $117,151 and are filing your tax return singly. You claim one exemption and can take a deduction of $2,713 for interest on your mortgage, an adjustment of $2,791 for business losses, an adjustment of $1,346 for alimony, a deduction of $2,086 for property taxes, a deduction of $2,376 for contributions to charity, and an adjustment of $1,091 for contributions to your retirement fund. The standard deduction for a single filer is $5,700, and exemptions are each worth $3,650. What is the difference between your adjusted gross income and your taxable income?

c

You have a home with a market value of $144,700, which has an assessment value of 72% of that amount. Your city has a property tax rate of 0.039. You know that 65% of your property tax dollars go to public schools. To the nearest dollar, how much of your taxes went to funding schools

c

You have decided both to open a savings account and to purchase a vehicle. You would like a savings account with the highest interest rate and a vehicle loan with a low interest rate. You currently have a checking account at Bank A. From the banks listed below, determine with which bank you should open a savings account and at which bank should you apply for your vehicle loan. 2007-04-04-00-00_files/i0090000.jpg2007-04-04-00-00_files/i0090001.jpg a. Bank A for the car loan and Bank B for the savings account b. Bank C for the car loan and Bank C for the savings account c. Bank B for the car loan and Bank A for the savings account d. Bank B for the car loan and Bank B for the savings account

c

chris is calculating his deductions for his tax return. He is filing singly. He can claim $1,813 from property taxes, $1,513 from medical expenses, and $761 from state income tax. The standard deduction for a single filer is $5,700. How does the standard deduction compare to Chris's deductions?

c

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

c

how is email a useful component of online banking? I. Email alerts can be used to warn you before you overdraw your account. II. You can have your bank statements emailed to you, getting them to you faster. III. Only emailed bank statements can be used to support electronically-filed tax returns. a. I only b. II only c. I and II only d. I, II, and III

c

ken, a single taxpayer, has a gross income of $79,685. He claims one exemption and can take a deduction of $1,257 for medical expenses, a deduction of $2,181 for interest on his mortgage, an adjustment of $800 for alimony, a deduction of $1,419 for property taxes, an adjustment of $1,722 for business expenses, and an adjustment of $2,511 for contributions to his retirement fund. The standard deduction for a single filer is $5,700, and exemptions are worth $3,650 apiece. Using the table below, how much does Ken owe in income tax?

c

sue's bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: Transaction Cost ($) Rent 353.76 Video game 32.79 Bike maintenance 60.26 Jacket 55.62 Rug 80.40 Night out 35.77 Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this? a. Yes, she can make the purchase and have money left over. b. Yes, but doing so will clear out her account. c. No, making that purchase will overdraw her account. d. No, she is overdrawn already.

c

what is a "balance brought forward?" a. The amount of money you transfer from another checking account b. The amount of money you will owe in the future c. The amount of money you have from the previous statement period d. The amount of money you used to open your account

c

A lawnmower costs $284, and the six-year extended warranty on the lawnmower costs 17% as much as the lawnmower itself. What is the effective price per year of the extended warranty?

c.

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?

c.

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

c.

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. 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.

c.

If Yessenia wants to buy a $165,000 whole life policy, and the annual premium rate (per $1000 of face value) for her age group is $15.46, how much is Yessenia's monthly premium?

c.

If an item tends to be very expensive to repair, how might that affect your decision to purchase a warranty for it?

c.

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?

c.

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.

c.

The extended warranty on a mini-fridge costs $41.25. If the warranty is 12.5% of the normal price, what is the cost of the mini-fridge itself, to the nearest dollar?

c.

The first option is a fee-for-service plan with a $7,500 deductible. Rachel 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. Rachel is a young lady with very few health care requirements. She anticipates one monthly visit to her primary care physician, and one annual visit to her allergy specialist. She has two generic prescription allergy medicines that need to be filled twice a month. If Rachel is able to stay healthy the entire year and does not accrue any additional health care costs, which of the following statements is true for her situation?

c.

Which of the following statements best describes the difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)?

c.

Rudy has been paying an annual homeowners insurance premium of $1,106.30 ($0.37 per $100 of value) since he first purchased his house. For the past six months, Rudy has completed some major improvements to his house to improve its overall value. If Rudy successfully adds $50,000 to the value of his house, what will his new annual homeowners insurance premium be?

c. $1,291.30

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. Using the table, find the difference in total premium costs over 20 years for this policy at the two age levels.

c. $12,875

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?

c. $6,256.88

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?

c. $6,984

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.

c. DeShawn's current policy will cover his family for an adequate period of time at his current salary.

When shopping for life insurance, the best strategy is to:

c. Figure out how much you need, then comparison shop using the Web and other resources.

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie's limits the most without increasing her monthly premium by more than $5.00?

c. Increase coverage on bodily injury to $100/300,000 and on property damage to $50,000.

Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?

c. Reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same.

Which of the following is a cost homeowners insurance does not protect?

c. Replacement costs for all contents in your home, including high cost electronics.

Tara and Levi are trying to decide between homeowners insurance policies offered by two different agencies. AAA Insurance has offered to insure their home for an annual premium of $0.38 per $100 with a $500 deductible. Thompson's Insurance has offered to insure the same home for an annual premium of $0.26 per $100 with an deductible of $1,000. The house Tara and Levi purchased is valued at $425,000. Which of the following statements accurately describes the difference between the two plans?

c. Thompson's Insurance is cheaper even if Tara and Levi experience an incident that results in severe damage or loss to their home.

Tina was involved in an accident in which she rear-ended another driver stopped at a stoplight. Tina is fully insured through her insurance company. Which of the following components of her insurance policy will cover the damages caused to Tina's car in the accident?

c. collision

Which of the following is not a factor that affects your auto insurance premiums?

c. the color of your car

Which of the following is something that will not affect your homeowners insurance premium?

c. the distance of the home from a fire station

In a fee-for-service health insurance plan with a $6,500 annual deductible, _____.

c. the insured individual must pay $6,500 in health care before the insurance company will begin to pay for his health care needs.

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. Using the table, find the difference in total premium costs over 20 years for this policy at the two age levels.

c. $12,875

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.)

c. $19,153.26

Below is a graph of the Murphys' annual expenses. If the Murphys' gross annual household income is $85,420, how much will they pay in federal taxes? a. $3,559.17 b. $8,542.00 c. $20,500.80 d. $29,897.00

c. $20,500.80

If Yessenia wants to buy a $165,000 whole life policy, and the annual premium rate (per $1000 of face value) for her age group is $15.46, how much is Yessenia's monthly premium?

c. $212.57

Auto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance policy through AA Auto Insurance with the following options? Bodily Injury: $25/50,000 Property Damage: $25,000 Collision: $250 deductible Comprehensive: $100 deductible AA Auto Insurance Type of Insurance Coverage Coverage Limits Annual Premiums Bodily Injury $25/$50,000 $22.50 $50/100,000 $31.75 $100/300,000 $40.25 Property Damage $25,000 $120.50 $50,000 $144.75 $100,000 $193.00 Collision $100 deductible $520.00 $250 deductible $415.25 $500 deductible $275.75 Comprehensive $50 deductible $110.25 $100 deductible $100.00

c. $54.85

Determine the total annual FICA tax for an annual salary of $110,330. Use $106,800 for maximum taxable earnings.

c. $8,221.39

A lawnmower costs $284, and the six-year extended warranty on the lawnmower costs 17% as much as the lawnmower itself. What is the effective price per year of the extended warranty?

c. $8.05

Cindy's apartment complex is offering renters insurance through their insurance company. The insurance company charges an annual premium of $565.00 which can be paid in equal payments throughout the year with her monthly rent. Cindy's monthly rent is currently $789.00. What will Cindy's new rent be if she includes the renters insurance?

c. $836.08

Stephen used a reconciliation worksheet, but his checkbook balance does not match the final worksheet balance. Evaluate the following list of possible errors that he has made. Decide which items could potentially correct this problem if found and corrected.

c. All five of the potential errors could cause this sort of problem.

Which of the following statements accurately describes the result of a decreasing worker-per-beneficiary ratio in the Social Security system?

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.

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.

c. II and III

Jerry is currently insured through AA Auto Insurance, but would like to lower his auto insurance premium by at least $10 per month. His current insurance plan includes the $50/100,000 limit for bodily injury, $100,000 limit for property damage, a $250 deductible for collision, and a $50 deductible for comprehensive. Which of the following adjustments would allow Jerry to meet his goal? a. Reduce bodily injury limits to $25/50,000. b. Reduce property damage to $25,000. c. Increase collision deductible to $500. d. Increase comprehensive deductible to $100.

c. Increase collision deductible to $500.

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie's limits the most without increasing her monthly premium by more than $5.00?

c. Increase coverage on bodily injury to $100/300,000 and on property damage to $50,000.

The actual income for this month has been reduced by $200. How can this budget be modified so there will be a positive actual net income?

c. The actual income for this month has been reduced by $200. How can this budget be modified so there will be a positive actual net income?

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie's limits the most without increasing her monthly premium by more than $5.00? a. Increase coverage on bodily injury to $100/300,000. b. Increase coverage on property damage to $50,000. c. Increase coverage on bodily injury to $100/300,000 and on property damage to $50,000. d. Increase coverage on bodily injury to $100/300,000 and on property damage to $100,000.

c. Increase coverage on bodily injury to $100/300,000 and on property damage to $50,000.

Tom is considering making changes to his policy to make insurance more affordable. Which of the following statements is not something Tom should consider when making changes to his policy?

c. Increasing the limits on his bodily injury insurance will reduce his overall expense by putting greater limits on how much the insurance company will pay for injuries.

Tom is considering making changes to his policy to make insurance more affordable. Which of the following statements is not something Tom should consider when making changes to his policy? a. Increasing the deductible on collision insurance will reduce his overall monthly and annual expense, but will lead to more out-of-pocket expense if he is in a collision. b. Removing comprehensive insurance will reduce his overall expense, but will leave Tom entirely responsible for the cost of a new windshield if he hits a rock on the highway. c. Increasing the limits on his bodily injury insurance will reduce his overall expense by putting greater limits on how much the insurance company will pay for injuries. d. Removing property damage insurance will reduce his overall expense, but will leave Tom responsible for the cost of repairs to any other cars involved with Tom in a collision.

c. Increasing the limits on his bodily injury insurance will reduce his overall expense by putting greater limits on how much the insurance company will pay for injuries.

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? 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.

c. Ralph's calculation is correct, he will have to pay $9,280 in federal taxes this year.

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.

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.

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.

c. The county gives all public school teachers a $2,000 raise without adjusting taxes.

Looking at her paycheck, Rhonda notices that $30.56 was withheld from her last paycheck for state income stax while $122.25 was withheld for federal income tax. She knows that she indicated on her employment paperwork to set her state withholding at 21% of the federal withholding. What should Rhonda be thinking? a. The state withholding is correct, the correct amount is being withheld. b. The state withholding is too low, too little is being withheld. c. The state withholding is too high, too much is being withheld. d. She should not have any money withheld by the state since she is having federal taxes withheld.

c. The state withholding is too high, too much is being withheld.

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

c. managing his liquidity

Which of the following is not a factor that affects your auto insurance premiums? a. year, make, and model of your car b. where you live c. the color of your car d. overall value of your car

c. the color of your car

Alexa has finished her culinary training program and is now working full-time as a chef in a hotel resort restaurant. She has tripled her salary from when she was working part-time to pay her expenses through school. How should this increased income affect her budget? Make comparisons with her previous budget and her current budget.

c. Alexa is earning quite a bit more money than she was previously. This would be a good time for her to re-evaluate her budget. Part of the extra money she is making could be put in her savings account.

Sienna wants to set up a special fund so she can save to buy presents for her friends and family throughout the year. If her gift purchases last year totaled $580, estimate how much she should save each month to have approximately the same amount available for gifts next year?

c. Approximately $48 .

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.

c. Even with the higher premium, Option 2 covers more of Sammy's health care costs in the event of a serious accident.

0.05% of all tax returns filed electronically contain errors, but 20% of all tax returns filed manually contain errors. If 3.3 million tax returns are filed each way, how many more manually filed returns containing errors will there be than electronically filed returns containing errors?

d

Abby lives in a state in which the state income tax rate is equal to 5.38% of federal taxable income. Abby's federal income tax is equal to 19.6% of her federal taxable income. If Abby owes $8,880.17 in federal income tax, how much does she owe in state income tax?

d

Analyze the following budget, with an income of $750, to determine how much can be spent on food for the month. Month________ Budgeted Amount Food $___ Personal Items $20 Cell Phone $75 Entertainment $85 Car Expenses - Gas, Insurance $260 College Savings $250 a. No more than $70 can be spent on food. b. No more than $75 can be spent on food. c. No more than $80 can be spent on food. d. No more than $60 can be spent on food.

d

Andrew is insured by Leroux Health Insurance under Plan A. The plan includes a $248.00 monthly premium with a $5,500.00 annual deductible (not including co-pays). Andrew is severely asthmatic. He visits his primary care physician twice a month and his asthma specialist once a month. He has two separate generic inhalers that need to be refilled on a weekly basis. To make matters worse, Andrew has recently been diagnosed with appendicitis and is scheduled to have his appendix removed in the morning. The procedure will cost about $1,500. Considering his frequent doctor visits, many prescription refills, and his appendix removal in addition to his monthly premium, how much will Andrew pay in health care related fees this year? Leroux Health Insurance Plan A Cost: Monthly Premium: $248.00 Annual Deductible: $5,500.00 Co-pays: Brand-name Prescriptions $35.00 Generic Prescriptions $15.00 Visits: Primary Care Physician: $40.00 Specialist: $60.00 Urgent Care: $125.00 Emergency Room: $325.00

d

Antonio is ready to move out of his parent's house and live on his own. He found a great apartment that has all utilities included. His job as an assistant plumber requires him to have a car, but his hours are flexible enough to give him time on the weekends to have fun with his friends. What is the best way Antonio's budget can be modified to help him save enough for the $200 down payment and make the $500 monthly rental payment? Monthly Budget Old Budget New Budget Income Wages $1500 $1500 Expenses Food Cell Phone Savings Entertainment Car Expenses . $250 $175 $200 $200 $300 . $____ $____ $____ $____ $____ Net Income $375 $____ a. Antonio could keep his budget the same and hope he gets a raise at work. b. Antonio could reduce his monthly entertainment expenses by $100 to help pay the monthly rent. He could take $200 out of savings once for the deposit. c. Antonio could live at his parent's house for one more month and save his net income. After one month of living at home, he would have enough additional money for the deposit and one year's rent at the apartment. d. Antonio could reduce his monthly entertainment expenses by $75 and his food expenses by $50 to pay the monthly rent. He could take $200 out of savings once for the deposit.

d

Arthur's yearly taxable income totals $116,600, and he pays $30,910.66 in federal income tax every year. Approximately what is Arthur's net federal income tax ra

d

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?

d

Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%. His original policy was set up using the premiums listed below. What is his new annual premium after the increase for the accident?

d

Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More?

d

Ben and his housemates signed a lease for an apartment for 12 months for $563 per month of which Ben agreed to pay $215 per month. Which of the following statements best gives the reasons that Ben's rent payment is an essential (fixed) expense? a. It cannot be eliminated in a later budget, in order to save money. b. Living expenses have a higher priority than any other type of expense. c. The spender controls the amount of the rent by choice of apartment. d. It is by contract the same amount every month.

d

Billy's employer pays for 65% of his annual health insurance premium. Billy has the rest deducted in equal amounts from his paycheck. If Billy has $105.73 withheld from his paychecks twice each month, how much does his employer contribute towards his health insurance on an annual basis?

d

Bob's bank charges him a $3.15 service fee every time he uses an out-of-network ATM. If Bob uses an out-of-network ATM an average of three times every two weeks, how much will he pay in service fees over the course of a year? a. $327.60 b. $109.20 c. $491.40 d. $245.70

d

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $125,000. Use $106,800 for maximum taxable earnings.

d

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $235,430. Use $106,800 for maximum taxable earnings.

d

Cassandra is trying to think of a good way to keep her financial records. She makes a lot of purchases, using cash, debit cards, and credit cards about equally. When she gets home every day, she tends to be very tired and doesn't like to do a lot of organized thinking. She tends to lose individual pieces of paper if she doesn't file them immediately. What might be a good method for Cassandra to use? a. Recording all of her daily expenditures in an organizational computer program. b. Keeping and collecting receipts for everything she buys. c. Tracking and collecting her bank and credit statements every month. d. Carrying a notebook and immediately recording all of her transactions in it.

d

Cesar's annual homeowners insurance premium is $972.80. If his home is valued at $253,000, roughly how much is Cesar paying for homeowners insurance?

d

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.

d

Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters, and plants. If the cost of the fish is $84.79, the filters usually cost $60.45 but Colin finds them on sale for $44.75, and the cost of the plants is $18.66, determine how much of Colin's $488.85 savings will be used to set up his aquarium. a. $289.81 b. $163.90 c. $340.65 d. $148.20

d

Consider the following incomplete deposit ticket: 2007-04-04-00-00_files/i0250000.jpg Which of the following are possible amounts for the third check and the cash that Cindy deposited? a. no cash and a $303.68 check b. $140.50 in cash and a $267.14 check c. $99.32 in cash and a $155.55 check d. $122.04 in cash and a $205.64 check

d

Determine the total annual FICA tax for an annual salary of $38,480.

d

Doug is filing singly. His net taxable income is $80,575. Every week, $304 is withheld from his earnings for income tax. Based on the table below, what can Doug expect when his taxes are due?

d

Faye's bank charges her a $2.25 service fee every time she uses an out-of-network ATM. If Faye uses an out-of-network ATM twice a week, how much money does she pay in service fees every year? a. $240.25 b. $225.00 c. $200.75 d. $234.00

d

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

d

For the past 16 months, Susie has been paying $126.50 each month to her insurance company. After causing an accident last month, her insurance company notified her that her monthly payment will be increased by $21.25. What increase in her annual premium did Susie's insurance company apply as a result of the accident?

d

For which of the following would not expect to pay an excise tax?

d

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

d

Gareth is single and has a net taxable income of $54,446. Over the year, his employer has collected $9,100 in withheld payroll tax. Based on the table below, what should Gareth expect when his taxes are due?

d

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

d

Harry and Helen are married, filing jointly. Their combined taxable income is $65,922. Every week, a total of $187 is withheld from their pay. Based on the table below, what can Harry and Helen expect when their taxes are due?

d

Ian invests $13,670 in a savings account at his local bank which gives 1.9% simple annual interest. He also invests $6,040 in an online savings account which gives 4.5% simple annual interest. After nine years, which one will have earned more interest, and how much more interest will it have earned, to the nearest dollar? a. The local account will have earned $7,521 more interest. b. The local account will have earned $3,199 more interest. c. The online account will have earned $3,090 more interest. d. The online account will have earned $109 more interest.

d

Jason keeps a record of his transactions in a notebook. Looking over his records for the past two weeks, Jason finds that his bank statement does not match his notebook, and he actually has less money than he thought he did. These are the relevant entries in Jason's notebook: Transaction Debit ($) Credit ($) Beginning Balance 578.65 Rent 275.60 --- Paycheck --- 363.20 Charitable donation 20.00 --- Keyboard 63.29 --- Refund on purchase --- 21.19 Groceries 44.08 --- Microwave 68.74 --- Ending Balance 491.33 However, Jason's bank statement says that his ending balance is $473.33. Which of the following is a possible explanation for the discrepancy? a. Jason actually made two $20 charitable donations but forgot to write one of them down. b. Jason listed the refund as a credit, but it should be a debit. c. Jason listed the groceries out of habit, but he did not actually purchase them this week. d. Jason transposed the digits on the microwave's price, which actually cost $86.74.

d

Jennifer is excited to be retiring after 35 years of service as a high school English teacher. Over the past 35 years, Jennifer's average annual salary was $26,443. How much can Jennifer expect to receive on a monthly basis from Social Security, assuming she will receive 42% of her average annually?

d

Kevin, while calculating his tax adjustments, notes that he can make adjustments of $3,435 for contributions to his retirement plan, $3,393 for business losses, and $1,128 for business expenses. If Kevin's gross income is $45,942, what is his adjusted gross income?

d

Kim has worked in the tech industry for some time and would like to start consulting. In opening her new business, she will need equipment. She needs to purchase 3 laptops, 2 desktop computers, and a fax machine. Each laptop costs $546.78, each desktop computer costs $1,255.99, and the cost of the fax machine is $125.99. She currently has $3,500 in her savings account. Determine if Kim has enough in her savings account to cover the expenses of her new company, and if she doesn't have enough, determine the amount needed to cover the cost. a. Kim can cover the cost with $315.25 left over. b. Kim can cover the cost with $477.68 left over. c. After expenses, Kim will need an additional $1,478.52 to start her company. d. After expenses, Kim will need an additional $778.31 to start her company.

d

Kurtis had purchased a renters insurance policy for his new apartment at an annual premium of $588.00. The items covered in the policy included a bicycle kept locked to the railing in front of the apartment. When the bicycle was stolen, the insurance company covered the replacement cost of the bicycle, but told Kurtis that, because of the loss, his premium would increase by 35% if he wished to continue with the policy. What would Kurtis' new annual premium be if he chose to keep the policy.

d

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

d

Liam uses checks and a debit card, but does not always write all the transactions in his checkbook register. He has lost track of his checkbook balance. Liam looks up the "available balance" using online banking, and writes it on the next line as his new checkbook balance available to spend. What is wrong with Liam's method? a. Liam's method fails to consider whether he has written any outstanding checks. b. The reconciliation worksheet will not work properly using Liam's adjusted checkbook balance. c. Liam could have unexpected non-sufficient funds fees due on any checks that have not yet cleared the bank. d. All of the above.

d

Matthew bought 4 new compact discs at $16.99 each and a carrying case for $35.89. He paid 2007-03-04-00-00_files/i0250000.jpg% sales tax on his purchases. If Matthew paid $112.42 total, determine if he paid the correct amount. a. Matthew paid $0.15 too little for his purchases. b. Matthew paid $0.16 too much for his purchases. c. Matthew paid $0.05 too much for his purchases. d. Matthew paid the correct amount for his purchases.

d

Maya works 16 hours per month at her part-time job earning $6.75 per hour. She earns some additional money house sitting for neighbors and friends. Maya charges $30 per day to house sit if there are no pets. If the house sitting includes pets, then she charges $40 per day. Last month, Maya spent 3 days house sitting with no pets and 5 days house sitting with pets. What is the total amount of earnings Maya had for the month? a. $270 b. $290 c. $378 d. $398

d

Melinda kept a record of her spending for the week. She spent $25 to put gas in the car, bought a new shirt for a total of $22.38, played putt-putt golf with some friends that cost $6.95 and paid $38.71 for a few groceries. What was the total of Melinda's expenses for the week? a. $68.24 b. $86.09 c. $91.94 d. $93.04

d

Nastasha has a gross income of $66,429. She can make adjustments of $14,490 for business losses, $3,584 for business expenses, and $4,813 for contributions to her retirement plan. What is Nastasha's adjusted gross income?

d

Ned's truck was caught in a hailstorm that left his truck body damaged and his paint job ruined. Ned is fully insured through his insurance company. Which of the following components of Ned's insurance policy will take care of the damage done to Ned's truck during the hailstorm?

d

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..

d

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?

d

Ozzie has a coupon for 5% off any purchase in his favorite bakery. When Ozzie stops to buy some cookies, he discovers that all cookies are on sale for 15% off the regular price. The cookies are regularly $5.89 per dozen. If Ozzie uses his coupon and pays 7% sales tax, how much does he pay for two dozen cookies? a. $9.42 b. $9.51 c. $10.08 d. $10.18

d

Ralph wants to purchase a renters insurance policy for his new apartment. His insurance company charges an annual premium of 16.53% of the approximate value of the items he owns and is keeping in his apartment. Below is a list of items Ralph made of the items he has in his apartment that he would like to be insured with his policy. What will Ralph's annual renters insurance premium be?

d

Rate the following bank accounts from most to least liquid: CD, savings account, checking account, money market account. a. CD, savings account, checking account, money market account b. Savings account, checking account, CD, money market account c. CD, money market account, savings account, checking account d. Checking account, savings account, money market account, CD

d

Roberta's monthly bank statement says that she has a balance of 386.29, but Roberta's check register says that her balance is 370.77. Which of the following are still outstanding? I. A $78.17 check to the electric company II. A $16.15 deposit from Roberta's roommate III. A $22.67 check to the grocery store IV. A $62.65 deposit from Roberta's tax return a. I and II b. II and III c. II and IV d. I and IV

d

Sandy and Alex are married, with no dependents. They wish to file a joint tax return. Both of them work, but their combined salaries only put them at a slightly above-average income. They would also like to deduct interest paid on their student loans. Recommend an appropriate 1040 form for Sandy and Alex to fill out.

d

Jennifer is excited to be retiring after 35 years of service as a high school English teacher. Over the past 35 years, Jennifer's average annual salary was $26,443. How much can Jennifer expect to receive on a monthly basis from Social Security, assuming she will receive 42% of her average annually?

d. $925.51

According the the chart below, what percentage of the Simpsons' annual expenses is taxes? a. 10% b. 14% c. 24% d. 34%

d. 34%

Sandy is trying to reconstruct her spending pattern from July. She knows that she had $277 in her account on July 1, but after that, her receipts and balance statements are all scrambled. Here are Sandy's records: Date Transaction Type Amount ($) 7/26 Purchase 86 7/25 Deposit 76 7/4 Purchase 137 7/6 Deposit 90 7/10 Purchase 131 7/9 Purchase 145 7/15 Deposit 152 7/19 Purchase 137 Assuming that this is a complete, if scrambled, record of Sandy's July spending and that any overdraft fees incurred do not affect the running total, how many times did Sandy overdraw her account in July? a. Sandy never overdrew her account. b. Sandy only overdrew her account once. c. Sandy overdrew her account twice. d. Sandy overdrew her account more than twice.

d

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.

d

The stores below each have the same snowboard for an original price of $189.59. At which store can you get the snowboard for the lowest price? Store A: Sale of 30% off and a successive discount of 10% off. Store B: Sale of 20% off and a successive discount of 20% off. Store C: Sale of 40% 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.

d

Tina lives in a state that charges her 4.5% state income tax on her federal taxable income. If her federal taxable income is $61,600, how much does Tina pay in stat

d

Todd and his wife are having company for dinner so he is tasked with stopping at the store to buy creamer for coffee and something for dessert. The creamer is in the far left corner of the store. As Todd is walking back to get the creamer he sees a sign for cookies that says "Just like grandma used to bake", and the bag has a picture of a woman that reminds Todd of his grandmother. Todd buys the cookies for dessert. Todd's purchase was least likely a result of _____. a. the location of the creamer b. the location of the display c. the packaging of the cookies d. his impulse buying

d

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%

d

Wendy is calculating her tax deductions. She finds that she can deduct $5,522 from medical expenses, $7,240 from charitable donations, and $2,126 from property taxes. What is Wendy's total deduction?

d

What is no-fault insurance?

d

What is the defining feature of a progressive tax?

d

Which of the following acronyms does not represent a managed care plan

d

Which of the following is not a reason young drivers have higher auto insurance premiums than older drivers?

d

Which of the following is not considered one of the four basic types of auto insurance?

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.

d

Which of the following is something that should not be a consideration when choosing a health care plan?

d

Which of the following items are elements of a monthly checking account statement? I. A period (beginning date and ending date) II. A beginning balance and ending balance. III. A detailed list of debits and credits during the period. a. I and II b. I and III c. II and III d. I, II and III

d

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.

d

Which of the following statements explains the relationship between Social Security and Medicare taxes?

d

Which of the following will not help Robert lower his homeowners insurance premium?

d

Which of these can be considered "online banking?" I. A brick-and-mortar bank that allows its customers to transfer money online. II. A bank that has only a few branches but has customers depositing money online. III. A bank that does not exist as a real building, but only has an internet presence. a. I and II b. II and III c. III only d. I, II, and III

d

gareth is single and has a net taxable income of $54,446. Over the year, his employer has collected $9,100 in withheld payroll tax. Based on the table below, what should Gareth expect when his taxes are due

d

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?

d.

Ralph's annual expenses for the upcoming year are summarized in the chart below. Based on the information in the graph, approximately what percent of his total annual income is Ralph having withheld for taxes? a. 6% b. 18% c. 30% d. 36%

d. 36%

What is no-fault insurance?

d. No-fault insurance covers medical expenses incurred after an accident, regardless of which driver caused the crash.

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.

d.

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

d.

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? a. $1,107 b. $1,328 c. $5,537 d. $6,644

d.

Lamar, age 43, wants to pay no more than $1,000 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $12.59, what is the largest whole life policy he can buy without spending more than $1,000 annually?

d.

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?

d.

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

d.

Which of the following is not a way health insurance helps to save you money?

d.

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

d.

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

d.

Cesar's annual homeowners insurance premium is $972.80. If his home is valued at $253,000, roughly how much is Cesar paying for homeowners insurance?

d. $0.38 per $100 of value

Which of the following is not a reason young drivers have higher auto insurance premiums than older drivers?

d. Accidents involving teenage drivers have required additional investigation, the cost of which is passed on to the driver in the form of a higher premium.

Which of the following will not help Robert lower his homeowners insurance premium?

d. Increase the total coverage of his home on his policy.

Which of the following is not considered one of the four basic types of auto insurance?

d. Legal Responsibility

What is no-fault insurance?

d. No-fault insurance covers medical expenses incurred after an accident, regardless of which driver caused the crash.

Which of the following is something that should not be a consideration when choosing a health care plan?

d. the coverage the insured individual and family already receive in auto insurance

Ralph's annual income is about $32,000. Based on his expenses illustrated in the graph below, roughly how much should Ralph expect to pay in taxes this year? a. $1,920 b. $8,000 c. $9,280 d. $11,200

d. $11,200

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

d. $189.42

Determine the total annual FICA tax for an annual salary of $38,480.

d. $2,943.72

For the past 16 months, Susie has been paying $126.50 each month to her insurance company. After causing an accident last month, her insurance company notified her that her monthly payment will be increased by $21.25. What increase in her annual premium did Susie's insurance company apply as a result of the accident? a. $21.25 b. $125.60 c. $147.75 d. $255.00

d. $255.00

Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5.2%. His original policy was set up using the premiums listed below. What is his new annual premium after the increase for the accident? a. $514.76 b. $543.00 c. $548.20 d. $571.24

d. $571.24

Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More? Fret-No-More Auto Insurance Type of Insurance Coverage Coverage Limits Annual Premiums Bodily Injury $25/50,000 $21.35 $50/100,000 $32.78 $100/300,000 $42.10 Property Damage $25,000 $115.50 $50,000 $142.44 $100,000 $193.78 Collision $100 deductible $490.25 $250 deductible $343.33 $500 deductible $248.08 Comprehensive $50 deductible $105.79 $100 deductible $88.23

d. $831.92

Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More? a. $473.16 b. $572.19 c. $732.89 d. $831.92

d. $831.92

What is no-fault insurance? a. No-fault insurance provides full coverage for the entire car. b. No-fault insurance covers only damages that you did not cause. c. No-fault insurance is the default insurance that all drivers receive if they do not wish to purchase a special policy. d. No-fault insurance covers medical expenses incurred after an accident, regardless of which driver caused the crash.

d. No-fault insurance covers medical expenses incurred after an accident, regardless of which driver caused the crash.

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $125,000. Use $106,800 for maximum taxable earnings.

d. Social Security tax: $6,621.60, Medicare tax: $1,812.50

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $235,430. Use $106,800 for maximum taxable earnings.

d. Social Security tax: $6,621.60, Medicare tax: $3,413.70

Many communities today are concerned with their local government's ability to appropriately manage the taxes it collects. If a government doesn't use all of the tax money it collects in taxes on existing expenditures, it may end up with extra money, called surplus. Which of the following could result in a county government budget in surplus? a. The government gives $100,000 to build and maintain a new sight-seeing attraction without adjusting existing expenditures. b. The government lowers sales and property taxes to satisfy taxpayers without adjusting expenditures. c. The government gives financial assistance to a neighboring county without adjusting taxes. d. The government reduces public transportation costs by switching to propane-run buses without adjusting taxes.

d. The government reduces public transportation costs by switching to propane-run buses without adjusting taxes.

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.

d. Under a progressive tax, those with more income shoulder more of the tax burden.

Ned's truck was caught in a hailstorm that left his truck body damaged and his paint job ruined. Ned is fully insured through his insurance company. Which of the following components of Ned's insurance policy will take care of the damage done to Ned's truck during the hailstorm?

d. comprehensive damage

Ned's truck was caught in a hailstorm that left his truck body damaged and his paint job ruined. Ned is fully insured through his insurance company. Which of the following components of Ned's insurance policy will take care of the damage done to Ned's truck during the hailstorm? a. bodily injury b. property damage c. collision d. comprehensive damage

d. comprehensive damage

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

d. i. $1,466.92 ii. $5,518.00 iii. $6,621.60

Antonio is ready to move out of his parent's house and live on his own. He found a great apartment that has all utilities included. His job as an assistant plumber requires him to have a car, but his hours are flexible enough to give him time on the weekends to have fun with his friends. What is the best way Antonio's budget can be modified to help him save enough for the $200 down payment and make the $500 monthly rental payment?

d. Antonio could reduce his monthly entertainment expenses by $75 and his food expenses by $50 to pay the monthly rent. He could take $200 out of savings once for the deposit.

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?

d. Both a and c

Alejandro lives in a small apartment, within walking distance to school. He takes the bus to work where he makes $10 per hour after taxes and works 30 hours per week. He wants to save money to buy a $6000 car within the next 2 years. How could a monthly budget be created to help Alejandro meet his financial goals? Select the best option.

d. Budget D

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?

d. Do all of the above.

Analyze the following budget, with an income of $750, to determine how much can be spent on food for the month.

d. No more than $60 can be spent on food.

Which of the following is considered a purchase tax?

excise tax

Which of the following health care programs will wait to pay their share of medical coverage until after treatment is provided?

fee-for-service plan

Social Security offers all but which of the following benefits?

home loans

The table below shows the typical hours worked by employees at a company. A new employee is offered an annual salary of $37,000. Hourly employees get paid $14 per hour, but get $21 per hour for each hour over 40 hours. Should the new employee choose the salaried or hourly pay? Explain your reasoning. Sun. Mon. Tues. Wed. Thurs. Fri. Sat. 0 8.5 9.5 7.5 8 8.5 4

if u have worked at least 40 hours 40 * 14 would be $560 but if u got over 40 lets say 46 u do $560+ 126 (21*6) you would end up with $686 per week u work

Mary and Lewis each open a savings account at the same time. Mary invests $3,700 in an account yielding 3.2% simple interest, and Lewis invests $3,000 in an account yielding 5.9% simple interest. After fifteen years, who has the greater total amount of money, and how much greater is it?

lewis has $174 more than mary

Nastasha has a gross income of $66,429. She can make adjustments of $14,490 for business losses, $3,584 for business expenses, and $4,813 for contributions to her retirement plan. What is Nastasha's adjusted gross income?

not a

What is the standard deduction used for?

not a

Which of the following would be a good reason to place your money into a savings account?

not a

Consider the following incomplete deposit ticket:

not a ($1,701.23)

Consider the following incomplete deposit ticket:

not a (no cash and a $303.68 check)

Mr. and Mrs. Nedage are filing a joint tax return. While listing their deductions, they find that they can deduct $2,150 from medical bills, $826 from state taxes, $3,133 from charitable donations, and $1,331 from interest on their mortgage. The standard deduction for married couples filing jointly is $8,350. How does the standard deduction compare to the Nedages' deductions?

not a or d

Who should fill out the W-2 form?

not b

Robert and Anne, a married couple filing jointly, have an adjusted gross income of $68,676. They claim two exemptions, and can deduct $3,752 for charitable donations, $3,375 for interest on their mortgage, and $959 from city income tax. If the standard deduction for a married couple filing jointly is $8,350 and exemptions are worth $3,650 apiece, what is their total taxable income?

not c

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?

not c

What is the defining feature of a progressive tax?

not c

According to the graph below, what percent of the Simpsons' annual expenses is Federal taxes?

not d

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?

not d

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?

not d

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?

not d

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?

not d

The chart below summarizes Ralph's annual expenses for the upcoming year. Based on the information in the graph, approximately what percent of his total budget will be for federal taxes?

not d

Which of the following statements best describes the difference between sales tax and property tax?

not d

Ricardo is treating his employees and makes the following purchases at the store: 2 packages of bagels at $3.49 each 2 containers of cream cheese at $2.89 each 3 dozen doughnuts at $5.39 each 4 bottles of juice at $3.49 each Ricardo has a business account which saves him 5% on all purchases at this store. The discount is applied before tax. He is charged sales tax of 7%. If Ricardo paid $45.89, then he _____ for his purchase.

paid $2.29 too much

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

paid $2.60 too much

Health insurance helps to protect you from financial loss by _____.

paying for some or all of your medical costs while you are insured.

Real Estate tax, a tax based on the value of the land and the buildings owned by its taxpayers, is a good example of _____.

property tax