financial math

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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

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.

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

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

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? a. $19,800 b. $18,900 c. $10,890 d. $8,910

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? a. $1.2 million b. $5.3 million c. $13.4 million d. $20.6 million

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

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? a. Lewis has $879 more than Mary. b. Lewis has $179 more than Mary. c. Mary has $776 more than Lewis. d. Mary has $345 more than Lewis.

not a

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

not a

To calculate 2007-03-04-00-00_files/i0020000.jpg% tax on $63.78, multiply 4.2 times 63.78.

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)^t30,000 = P(1+0.05)^20Lakisha will need to invest $11,307.

Sammy makes $2362/month as a baseball coach. He is making a budget, and has made the following chart in order to divide his monthly paycheck into his accounts: Expense type Frequency Account Monthly amount Items Essential (fixed) Monthly Checking $1292 Rent, car, insurance Essential (variable) Monthly Checking $420 Basic groceries, telephone, electricity, cable TV, batting practice. Non-essential Monthly Cash $260 Snack items, restaurants, gifts, movies. Other (predictable) Annual Emergency savings $130 Health exams, clothing, food, baseball coach magazine. Other (unpredictable) Annual Emergency savings $210 Non-insured healthcare, repairs, and income replacement. Other (long-term) 5 years Vacation savings $50 Vacation. Total $2362 Sammy has included a total row to help make sure that his paycheck can be divided to make deposits into these 4 accounts. If there were any extra, then he would increase one or all of the deposits. If there were not enough, he would decrease one or all of the deposits. Explain how Sammy calculated his total amount deposited.

Answers will vary, but the student's answer should show understanding for the importance of making sure that the total deposits (expenses + savings) equals the income.

Given the following prices, explain why Brand B is the better buy. (Hint: 16 ounces = 1 pound and 1 pound = 453.59 grams) Brand A: 54 ounces for $4.89 Brand B: pounds for $3.91 Brand C: 910 grams for $3.10

Calculate the unit price of Brand A: 54 ounces = 3.375 pounds; 4.89/3.375 is approximately $1.45 per pound. Calculate the unit price of Brand B: 2 3/4 = 2.75; 3.91/2.75 is approximately $1.42 per pound. Calculate the unit price of Brand C: 910 grams is approximately 2 pounds; 3.10/2 is approximately $1.50 per pound. Comparing the unit prices, Brand B has the cheaper unit price.

Successive discounts of 20% and 10% are taken on an item priced at $16. Describe how to find the sale price of the item and give the sale price.

Find 20% of $16: (0.2)(16) = $3.20 Subtract $3.20 from $16: 16 - $3.20 = $12.80 Take 10% of $12.80: (0.1)(12.80) = $1.28 Subtract $1.28 from $12.80: $12.80 - $1.28 = $11.52

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.

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.

The Harringtons go to a restaurant for lunch and their bill is $86.20. After 6.5% tax and tip, they pay a total of $100. If the Harringtons were exceptionally pleased with their service, decide if their tip reflected this. Explain your reasoning.

No, the Harringtons tip does not reflect how they felt about their service. The tax on their bill is (0.065)(86.20) = $5.60, which means that their total before tip is 86.20 + 5.60 = $91.80. Subtracting this from the $100, leaves $8.20 for the tip, which is less than 10%. Based on the average range of tipping being 10% - 20% with 20% at the high end, their tip seems to reflect that they were not happy with their service.

You want to buy a new pair of Kickin' sneakers and you see the following ads: Store A All Sneakers 25% Off! Kickin' Brand priced at $80 Store B All Sneakers 20% Off! Kickin' Brand priced at $80 Coupon for Store A Good for an additional 10% off on any sneaker purchase. Coupon for Store B Good for an additional 15% off on any sneaker purchase. Which store would you go to in order to get the best deal on your sneakers? Explain your reasoning.

Store A. Store A: 25% off on $80 is $20, so the sneakers would be $60. Take 10% of $60 to get $6 off. The sneakers at Store A would cost $60 - $6 = $54. Store B: 20% off on $80 is $16, so the sneakers would be $64. Take 15% of $64 to get $9.60 off. The sneakers at Store B would cost $64 - $9.60 = $54.40.

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.

Lanee purchased a briefcase online. The total bill of $95.68 included a $5.25 shipping charge and 5% tax on the purchase. If Lanee used a $5 off promotional code that was applied before tax, how much was the original price of the briefcase?

The original price of the briefcase was $91.12.

Mike goes grocery shopping for baby food for his young daughter. He has a coupon for a popular brand, but as he's rounding the end of the aisle he sees a display for a new brand of baby food. On the jar it says the baby food is all natural with no preservatives. Because he only wants the best for his daughter, he immediately buys the new brand even though it's a bit more expensive. Explain what techniques the seller has used to market the new brand of baby food, and if Mike should have taken any additional steps before making his purchase.

The seller has used a display and key words or catch phrases such as all natural and no preservatives. Before making his purchase, Mike should have compared the ingredients of the two baby foods. It is possible that the other baby food is also all natural and has no preservatives.

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.

1 2 3 4 5 6 7 8 9 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 business advertises that everything in the store is an additional 10% off the already reduced prices. Marcus picks out 2 shirts that are on a 30% off rack. If the shirts are originally priced at $28.99 and $30.29 and there is 6% sales tax, how much does Marcus end up paying for them? a. $39.59 b. $37.70 c. $37.35 d. $35.57

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? a. Essential (flexible) expense b. Emergency fund c. Essential (fixed) expense d. Non-essential expense

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

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

An mp3 player is on sale for 30% off the regular price of $39.98. How much is the discount? a. $11.99 b. $13.19 c. $13.33 d. $27.99

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

Bill wants to open a checking account to pay bills from and a savings account to cover overdrafts and other emergencies. He wants online services, and a debit card. He analyzes the following statements of fees from State Bank and Common Bank: 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? a. State Bank is expected to cost the least. b. Common Bank is expected to cost the least. c. State Bank and Common Bank would have the same costs for Bill. d. The fees cannot be estimated in advance.

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

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

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.

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.

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? a. $331.52 b. $420.67 c. $631.52 d. $719.59

If the FDIC charges Bank E 2.4 cents per 100 dollars insured, how much must Bank E pay to insure $4.8 million in deposits? a. $1,152 b. $115,200 c. $2,112 d. $211,200

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? a. $56.17 billion b. $62.83 billion c. $66.16 billion d. $3,332 million

Lyonell has kept track of his income and expenses for the week in the spreadsheet below. How much did Lyonell spend on theater tickets? 2007-03-03-00-00_files/i0140000.jpg a. $48.75 b. $117.24 c. $252.84 d. $381.82

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

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.

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

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.

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. 10.49% b. 12.06% c. 11.72% d. 8.94%

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

The 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.

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.

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

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

What is a "closing balance?" a. The amount of money you have at the end of the statement period b. The amount of money you have when you close your account c. The amount of money you owe at the end of the statement period d. The amount of money waiting to be transferred out of your account

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

Which of the following investments will earn the smallest amount of interest? a. $8,030, invested for 2 years at 2.0% interest b. $1,901, invested for 8 years at 4.0% interest c. $5,330, invested for 6 years at 2.0% interest d. $3,970, invested for 6 years at 4.0% interest

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

Which of the following items may not be a good consideration in selecting a bank? a. The word "FREE" is prominently displayed in the marketing pamphlet. b. Knowledge of personal usage habits and needs. c. Number of ATMs near where you live, shop, work, or travel. d. The table of fees.

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.

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

Which of the following would you list as a non-essential expense? a. A fashionable pair of blue jeans. b. Electricity for your home. c. Insurance on your car. d. A bill for data usage on a smart phone.

Which of these is an example of using financial reserves for a occasional expense? a. You know that your car will need a tune-up and other routine maintenance every winter, so you save a little money every month in preparation and use the saved money to pay when winter comes around. b. You are hit with a summer heat wave and your utility bill spikes, so you use your credit card to pay the bill and pay off the balance over the next few months. c. You graduate college and need to start paying back your student loans, so you devote some of your income every month to paying down the debt. d. You are never quite sure how much money you spend on food every month, and every so often you need to pull a tiny bit from your retirement fund to pay for groceries.

You have $5,400 to deposit. If you deposit the money in a savings account at your local bank, you will earn 1.49% 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 4.44% annual interest, but you will be charged $5 every time you make an ATM withdrawal. Assuming that your ATM withdrawals do not reduce the amount of interest you earn, roughly how many times a year can you make an ATM withdrawal in order for the local savings account to be a better deal than the online savings account? a. 32 b. 27 c. 22 d. 15

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.

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%

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.

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

Assume that you are going to open a checking account. You are examining different banks and banking accounts to choose a bank account for your needs. Which of the following statements should not be one of your reasons for examining different banks? a. Being more informed leads to being better prepared to make financial decisions. b. Bank E offers you a chocolate bar for filling out an application for checking and credit at the same time. c. Banks could have charges that you do not know about until reading carefully. d. You will become more aware of how well the banks meet your particular needs.

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

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? a. The bank offers $10 to customers who get a pre-approval for a car loan. b. If he needs a car loan in the future, he will have a relationship of trust with the bank. c. The bank provides ATMs that are particularly useful for people who drive. d. Banks that provide car loans can usually charge lower fees.

Bryan is mapping out essential and non-essential expenses. He owes a car payment of $235 per month for 45 more months. Bryan is thinking about selling the car because he knows he can walk to work, which is only 3 blocks from his home. Which of the following is the correct category for this expense? a. Emergency fund b. Essential (fixed) expense c. Essential (flexible) expense d. Non-essential expense

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

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

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

Given the following information, determine if one of the brands is a better buy. Brand A: 14 ounces for $33.18 Brand B: 22 ounces for $52.80 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.

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

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

If 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? a. $24.7 billion b. $22.8 billion c. $20.9 billion d. $19.0 billion

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? a. 25 years b. 36 years c. 45 years d. 60 years

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

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

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

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

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. a. I b. I and II c. I, II, and III d. I and III

Jared wants to purchase his favorite barbeque sauce. The barbeque sauce comes in two different size bottles. The 32 ounce bottle is on sale for $4.59. The 18 ounce bottle is priced at $3.06. Jared has a coupon for 60 cents off if you buy two 18 ounce bottles. Determine if Jared gets the better buy when he buys one 32 ounce bottle or when he buys two 18 ounce bottles. a. Jared will get the same deal on either purchase. b. Jared will get the better deal buying one 32 ounce bottle. c. Jared will get the better deal buying two 18 ounce bottles. d. Jared doesn't need the coupon, he will get the best deal on one 18 ounce bottle.

Larissa invested $19,000 in an eleven-year CD giving 7.5% interest, but needed to withdraw $2,500 after four years. If the CD's penalty for early withdrawal was one year's worth of interest on the amount withdrawn, how much money did Larissa have when the CD reached maturity, not including the amount she withdrew? a. $13,612.50 b. $30,675.00 c. $30,112.50 d. $14,175.00

Livvi invests $19,430 in a savings account at her local bank which pays 1.8% simple annual interest. She also deposits $16,470 in an online savings account which pays 2.7% simple annual interest. After six years, which account will yield more interest, and approximately how much more interest will it yield? a. The online account will give $2,668 more interest. b. The online account will give $570 more interest. c. The local account will give $2,960 more interest. d. The local account will give $2,390 more interest.

Lloyd has $20,000 to deposit. His wife's illness leads to medical expenses beyond what their insurance will cover, so Lloyd must often quickly access his savings. Recommend a good way for Lloyd to store his money. a. A two-year CD giving 9.1% interest annually b. An online savings account giving 3.6% interest c. A series of six-month money market accounts paying 4.6% interest d. A checking account with free checks

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

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 IncomeFederal Tax$0 - $7,82510% of amount$7,825.01 - $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? a. $5,048.75 b. $336,100.50 c. $341,149.25 d. $676,260.76

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. $ 487132. Enter the sum of any outstanding deposits or credits.$186683. Add lines 1 and 2.$673814. Enter the sum of any outstanding checks or debits.$174015. Subtract line 4 from line 3.$499806. Enter your checkbook balance.$36260Note: 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

Melanie's monthly bank statement says her balance is $280.82, but her check register says that her balance is $312.55. Which of the following are still outstanding? I. A $56.49 check to the drugstore II. A $113.42 paycheck deposit III. A $32.62 refund deposit IV. An $81.69 check to the music store a. I and III b. II and IV c. II and III d. III and IV

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

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. a. $975.32 b. $899.15 c. $1,049.16 d. $848.84

Peggy needs to pay car insurance 2 times every year. She has divided the payment by 6 and saves that amount each month. Which account below is the best account in which to save this money? a. 401-K retirement fund with matching deposits from Peggy's employer. b. A checking account, or a savings account for other expenses (predictable), and emergencies. c. A savings account for college tuition. d. Coin jar.

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

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

Sarah's essential (fixed) expenses are $750 per month, her essential (flexible) expenses are $500 per month, and her non-essential expenses are $250 per month. Her 401-K retirement account has $6,000, her education savings account has $3,000, and her emergency fund savings account has $2,300. Sarah wants an emergency fund of 5 times monthly living expenses. How much more does Sarah need to save to have an adequate emergency fund? a. $1,450 b. $5,200 c. $0 d. $950

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.

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

Teri goes shopping for some new clothes and then out to lunch with a friend. She spends $32.94 on some shirts, $15.89 for a belt and $19.99 each for two dresses that are on sale. For lunch, Teri has a salad that is $6.95, iced tea for $1.49 and dessert for $3.49. Teri pays 7% sales tax on both her shopping items and lunch. She tips her server 15%. How much has Teri spent all total for the day? a. $121.52 b. $109.58 c. $107.79 d. $88.19

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

The following list shows the items and prices for a restaurant order. Calculate the total amount if there is an 8% tax and the customer leaves a 20% gratuity. 1 appetizer: $8.59 2 entrees: $15.99 each 1 dessert: $4.69 2 drinks: $2.10 each a. $64.10 b. $63.31 c. $59.35 d. $40.15

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

Use mental math to approximate what a 15% tip would be for a bill of $31.99. a. $3.20 b. $4.80 c. $5.60 d. $6.40

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

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

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

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

Which of the following must be present for a check to be legitimate? I. The recipient's bank II. The date III. A memo or note a. I and II b. II only c. III only d. I, II, and III

Which of the following would you expect to find on a monthly account statement? a. A new set of checks and deposit slips for the coming month. b. A list of credits and debits made during the period. c. A comparison of ending balances for the past 12 months. d. A tally of all credits and debits in the account's history.

Which statement below gives the best reason for considering personal needs, values, and circumstances in selecting a bank account? a. Fees do not matter; only what the person has heard is a good feature in a bank. b. This information can lead to a better match between account features and the person's needs. c. The best bank account is simply the best bank account for everybody. d. Opening an account should be done by chance so that personal biases do not interfere.

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.

You have a restaurant bill of $61.45. If you are taxed 2007-03-04-00-00_files/i0150000.jpg% and decide to tip your server 15%, how much is your total? a. $75.65 b. $75.89 c. $76.32 d. $76.67

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

Zalia meets her friend at the science museum to see a special exhibition. The admission to the museum is $12.50 per person 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

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.

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.

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. 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

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. $38.73

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

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? a. 8.47% b. 15.1% c. 11.8% d. 9.1%

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.

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

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

Carol uses this graduated tax schedule to determine how much income tax she owes. If Carol's taxable income is $89,786, how much income tax does she owe, to the nearest dollar? a. $25,140 b. $12,654 c. $19,636 d. $37,626

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

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

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

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

Consider the following incomplete deposit ticket: How much did Kay deposit in cash and coins? a. $404.57 b. $213.51 c. $93.44 d. $284.50

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? a. $60,356 b. $19,110 c. $18,644 d. $22,316

Dylan's essential (fixed) expenses are $900 per month, his essential (flexible) expenses are $400 per month, and his non-essential expenses are $295 per month. His 401-K retirement account has $12,000, and his emergency fund savings account has $3500. Dylan wants an emergency fund of 3 times monthly living expenses. How much more does Dylan need to save to have an adequate emergency fund? a. $1,450 b. $5,200 c. $1,285 d. $8,500

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

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

Haley invests $16,820 in a nine-year CD bearing 5.8% interest, and $21,950 in an online savings account giving 3.0% interest. When the CD reaches maturity, how much more interest will it have generated than the savings account? a. $5,129.72 b. $3,650.32 c. $2,853.54 d. $2,276.46

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

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

Identify the following bank account. 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

Katie keeps a record of her transactions in a notebook. Looking over her records for the past two weeks, Katie finds that her bank statement does not match her notebook, and she actually has more money than she thought she did. These are the relevant entries in Katie's notebook: Transaction Debit ($) Credit ($) Beginning Balance 889.23 Fence repair 75.86 --- Dry cleaning 32.38 --- Paycheck --- 140.91 Gift from cousin --- 35.00 Car payment 178.66 --- Tax refund --- 66.18 New chair 161.55 --- Ending Balance 682.87 However, Katie's bank statement says that her ending balance is $707.10. Which of the following is a possible explanation for the discrepancy? a. Katie's neighbor paid for half of the fence repair, which Katie forgot to record. b. Katie transposed the digits in the cost of the dry cleaning, which actually cost $23.38. c. Katie's new chair was on sale for 15% off, making it cost $137.32, but Katie wrote down the before-sale price. d. Katie's tax refund came in two equal-sized checks, but Katie only recorded one of them.

Kurt's ending balance on April 30 was $331.36. Add or subtract the items in his check register, shown below, to find his balance on May 30. Date Type Description Amount 05/01 Check #478 Car payment $186.47 05/05 Debit Groceries $66.42 05/08 Deposit Paycheck $279.62 05/15 Deposit Tax return $95.02 05/29 Check #479 Insurance $160.00 Assuming this record is complete, what is Kurt's ending balance? a. $369.61 b. $359.53 c. $293.11 d. $274.59

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

Looking at her paycheck, Rhonda notices that $30.56 was withheld from her last paycheck for state income tax 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.

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

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 1 Krispy Kosmos $2.89 $ 2 Chewy Chocos $3.19 $ 1 Gooey Globs 2.99 $ Total $ 5.2% tax $ Total to be paid $ a. $9.54 b. $12.26 c. $12.90 d. $18.64

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

Mrs. Torres goes out of town on a business trip. She spends 3 nights in a hotel at a charge of $80 per night. She pays 9% tax on the room and tips the maid service 10% of the room charge. Mrs. Torres also has meals worth $109.30 before tax and she tips 15%. If the total cost of her trip is $420.04, approximately what tax rate does Mrs. Torres pay on her meals? a. 6% b. 7% c. 8% d. 9%

Natasha makes on online purchase of 3 hard cover books for $19.95 each and 1 book on tape for $17.43. The site says that taxes paid by the customer are 7.25% 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 Natasha selects standard shipping for her purchase and the company bills her credit card $91.08 for the total of the online purchase. Determine if Natasha has been billed correctly for her purchase. a. Natasha has been billed correctly. b. Natasha has not been charged enough for her purchase. c. Natasha has been over charged by $1.85 for her purchase. d. Natasha has been over charged by $8.20 for her purchase.

Natasha places an online order for plate holders to display her antique plates. She chooses a specific site because it has a promotional offer of 15% off on all purchases. She orders 3 large holders for $4.95 each, 2 medium holders for 3.25 each and 2 small holders for $1.75 each. There is no sales tax on her purchase, but she must pay a flat rate of $5.35 for shipping and handling. What is the total of Natasha?s online purchase? a. $19.64 b. $24.18 c. $26.47 d. $28.45

Nezzie is shopping for items for her daycare because the store is having a sale where everything in the store is 10% off. Nezzie buys a playhouse for $100.29 and a music center for $59.99. She has a coupon for an additional 15% off on the playhouse. Before tax, Nezzie estimates that her total, after discounts, will be about $122. Determine if Nezzie has estimated correctly. a. Yes. Nezzie has estimated correctly. b. No. Nezzie has taken 25% off from the music center, which is not correct. c. No. Nezzie has taken successive discounts on the total, but the coupon is just on the playhouse. d. No. Nezzie has estimated 10% off the original price of the playhouse not the discounted price.

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

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

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. a. did not pay enough b. paid the correct amount c. paid $2.29 too much d. paid $5.14 too much

Rogério, a graphic artist, after paying all the expenses in his monthly budget, has a monthly net cash flow of $248. He has decided to add monthly savings to his budget in order to cover his health insurance co-pays and other expenses that come at odd times as listed below: Predictable Expense Amount Medical exams, lab co-pays, health insurance co-pays $640 every year Auto maintenance $35 per quarter Auto registration $225 per year If Rogério leaves the cash flow in the checking account for all needs that arise, he runs the risk of not having the money for these very important future expenses. He has decided to make an automatic monthly transfer from his checking account to his savings accounts to cover these other predictable expenses. How can he divide these future expenses into a monthly deposit that can be added to his monthly budget. How much will be left over each month that can be deposited into a general emergency fund? a. $75 future expenses; $173 emergency fund b. $248 future expenses; $0 emergency fund c. $83.75 future expenses; $164.25 emergency fund d. $128.34 future expenses; $119.66 emergency fund

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: Amount of Purchase Standard Shipping Express Shipping up to $50 $4.00 $7.00 $50 up to $100 $5.25 $9.50 $100 up to $200 $6.00 $12.75 $200 and over $8.50 $15.00 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.

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.

There are 12 cans of corn in a case. Each can of corn is 10 ounces. If a case of corn costs $10.68, what is the unit price per can of corn? a. $0.09 b. $0.11 c. $0.89 d. $1.07

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

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

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

When choosing a bank, why might ATM availability be valuable to someone who values convenience over cost? a. ATMs allow you to conduct bank transactions without going to the bank, so a bank without ATMs will require you to come in to the main office for everything. b. Checks are deposited in ATMs, so some retailers will not accept checks from a bank without ATM service. c. A greater availability of ATMs may make it easier to do bank transactions. Someone may choose this availability over a higher savings interest rate. d. ATM cards double as debit cards, so a bank without ATM service cannot issue debit cards.

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

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

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

Which of the following is protected by the FDIC? a. Deposits lost to identity fraud b. Stock investments c. Money market accounts d. Annuities

Which of the following is something you would not expect to see withheld from your paycheck? a. federal income tax b. state income tax c. sales tax d. Social Security

Which of the following statements describes a part of a reasonable method for increasing the amount of savings in the budget. a. Keep "Essential Expenses (Fixed)" the same amount every time the budget is revised. b. Occasionally pay a bill later than due, in order to increase available cash. c. Find a way to reduce "Non-Essential Expenses" in the monthly budget. d. Use only money from the coin jar towards "rainy day" expenses.

Why is it important to choose a bank that is a member of the FDIC? a. The FDIC is the regulatory body that licenses banks, so a non-FDIC bank is illegal. b. The FDIC is a union that prevents banks from taking advantage of customers, so you will receive better service with an FDIC bank. c. 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. d. Only FDIC banks are legally allowed to issue loans, so if you ever anticipate needing a loan, you will need to use an FDIC bank.

Winnie is buying dog food for her dog. She needs 10 pounds of food each week, but has room to store any extra food that she purchases.The food comes in 4 different sizes as given below: 4.2 pounds for $4.99 8.5 pounds for $9.27 12 pounds for $11.04 20 pounds for $18.99 Winnie is trying to be a smart shopper and get the best deal on the dog food. Which size bag of dog food should Winnie buy? a. Winnie should buy the 4.2 pound bags. b. Winnie should buy the 8.5 pound bags. c. Winnie should buy the 12 pound bags. d. Winnie should buy the 20 pound bags.

Yanna works for a hospital that has its own credit union called Health Central Credit Union (HCCU). It offers banking services similar to those of a bank. Observe the following tables of services and fees: What would be Yanna's total monthly fees for a checking account with direct paycheck deposit, no overdrafts, no 2nd copies of statements, 3 ATM usages in the hospital, and 5 ATM usages outside the hospital? a. $5 b. $1 c. $6 d. $2

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? a. $323 b. $337 c. $340 d. $344

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

You have $6,500 to deposit. If you deposit the money in a savings account at your local bank, you will earn 1.45% 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 2.25% 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, how many ATM withdrawals must you make in a year for the local savings account to be a better deal than the online savings account? a. 5 b. 12 c. 14 d. 10

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? a. $4,063 b. $3,668 c. $2,641 d. $6,772

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

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. 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

cRonald 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.

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

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? a. $477.75 b. $1,740.51 c. $3,235.15 d. $2,437.52

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? a. $573.36 b. $4,387.69 c. $1,170.04 d. $2,040.00

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.

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.

Ashley invests $9,720 in a one-month money market account paying 3.16% simple annual interest and $8,140 in a two-year CD yielding 3.23% simple annual interest. Assuming Ashley does not reinvest or renew these investments, how much money will she have when both investments reach maturity, to the nearest dollar? a. $550 b. $1,080 c. $17,310 d. $18,411

Belinda keeps a record of her expenses for the week as shown: Bus fare $8.70 Lunch out $7.35 Hair cut $16 Movie rental $5.95 What is the total of Belinda's expenses for the week? a. $22.16 b. $23.60 c. $37.90 d. $38.00

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. He agreed to pay the same amount every month.

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

Brett tallies up the transactions in his check register and comes up with a total balance of $248.53, but his bank statement says that his balance is $257.72. Which of the following are still outstanding? I. A $44.09 check to the electronics store II. A $73.98 check to the mechanic III. A $49.96 paycheck deposit IV. A $64.79 check deposit from Brett's cousin a. I and III b. II and III c. I and IV d. II and IV

Calculate 2007-03-04-00-00_files/i0070000.jpg% tax on $2,305. a. $15.56 b. $145.22 c. $146.14 d. $155.59

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

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.

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

Consider the following incomplete deposit slip: Description Amount ($) Cash, including coins 150 75 Check 1 564 81 Check 2 2192 43 Check 3 4864 01 Subtotal ???? ?? Less cash received ???? ?? Total 7050 50 How much cash did the person who filled out this deposit slip receive? a. $849.25 b. $715.56 c. $7,621.53 d. $721.50

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

Four different stores have the same watch 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 watch. Store A: price $129.99 and discount of 25% Store B: price $119.99 and discount of 15% Store C: price $115.99 and successive discounts of 5% and 5% Store D: price $109.99 and discount of 10% a. A, B, C. D b. A, B, D, C c. A, C, D, B d. A, D, B, C

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

If a unit price label has a unit price of 13.5 cents per ounce, how much is the total price for a 24 ounce package? a. $0.32 b. $0.56 c. $1.78 d. $3.24

If the FDIC has an insurance fund of $67.8 billion and must use 7.6% of it to cover several failed banks, approximately how much money is left in the fund? a. $5,153 million b. $57.49 billion c. $72.95 billion d. $62.65 billion

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? a. $1,806 b. $2,282 c. $4,095 d. $7,000

James is opening a checking account. The bank employees do not know him personally, and he has forgotten his identification. Can he open the account anyway, and use the ID later when he gets his debit card? a. Yes, it is usually OK if he has the money. b. Yes, but a note must be made on the application. c. No, because the photograph will be used on the debit card. d. No, because proper identification is required to open a checking account.

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.

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

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.

Luis makes the following purchases at the store: 1 gallon of milk at $2.89 2 loaves of bread at $2.19 each 2 pounds of ham at $6.89 per pound 1/2 pound of cheese at $8.38 per pound Luis has a coupon for 75 cents off on the purchase of one loaf of bread that is applied before tax, and he pays 4% sales tax. If Luis paid $29.83 , then he _____ for his purchase. a. did not pay enough b. paid the correct amount c. paid $3.58 too much d. paid $4.36 too much

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.

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.

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

Niah earns $7.25 per hour at her part-time job that she works at 18 hours per week. To earn some extra money, Niah helps her friend out with her dog walking service. It is possible to walk more than one dog at a time, and Niah's friend pays her $9 per dog for each half hour walked. Niah walks dogs on 3 different days this week, as listed below. What is the total amount of earnings Niah had this week? Monday: 3 dogs for 0.5 hours Wednesday: 2 dogs for 0.5 hours and 1 dog for 0.5 hours Thursday: 2 dogs for 1 hour a. $175.50 b. $195.75 c. $202.50 d. $220.50

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? a. $213 b. $1,030 c. $1,272 d. $3,166

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%

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

Robert makes $951 gross income per week and keeps $762 of it after tax withholding. How many allowances has Robert claimed? a. One b. Two c. Three d. Four

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

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

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.

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.

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

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.

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? a. $1,545 b. $227 c. $4,372 d. $2,772

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%

Vera orders some prints of photos that she uploaded to her computer. She orders 3 of the 5 x 7 prints for $0.89 each, 12 of the 4 x 6 prints for $0.15 each and 1 of the 8 x 10 prints for $2.99. She also orders a photo album for $8.69. Vera pays taxes that are 7% of the total purchase price. Her shipping charges are based on the following table: Amount of Purchase Standard Shipping Express Shipping up to $20 free $3.50 $50 up to $100 $6.35 $8.20 $100 up to $200 $7.80 $11.60 $200 and over $10.50 $16.45 Vera selects standard shipping and the company bills her credit card $20.78 for the total of the online purchase. Determine if Vera has been billed correctly for her purchase. a. Vera has been billed correctly. b. Vera has not been charged enough for her purchase. c. Vera has been over charged by $1.13 for her purchase. d. Vera has been over charged by $3.50 for her purchase.

Which of the following expressions shows how to calculate the unit price for a 28 ounce jar of spaghetti sauce priced at $2.89? a. ($2.89)(28) b. $2.89 - 28 c. d.

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

Which of the following would you list as an "Essential (Fixed)" expense? a. Electricity bill b. Telephone usage bill c. Car repair d. Rent

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

Which of these is not a factor you need to consider when choosing a bank? a. The number of ATM machines b. Branch locations c. How often you need access to your money d. The amount of money you paid in income taxes last year

Wynona buys some new boots that are priced $85.79. She gets successive discounts of 10% followed by 5% off on the boots. The purchase price of Wynona's boots is _____ of the original price. a. 84% b. 84.5% c. 85% d. 85.5%

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 ___________. a. Overdraft fees b. Debit cards c. Minimum monthly balance d. Interest on deposits

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.

not a

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

not a

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

not c

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

not d

Orlando invested $16,000 in an eight-year CD bearing 6.5% simple annual 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

not d

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

not d

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

not d

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

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?

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

Describe the key features of a financial record keeping system.

A financial record keeping system should be safe, comprehensive and accessible.

An essential expense (fixed or variable) is one that cannot be reduced in order to save more money, whereas a non-essential expense is one that should be eliminated and directed to savings. Please select the best answer from the choices provided T F

Consider the following incomplete deposit ticket: How much cash did Liz receive? Please select the best answer from the choices provided $458.57 $670.71 $323.54 $1,805.32

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? a. One b. Two c. Three d. Four

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? a. $1,101 b. $2,294 c. $35,520 d. $1,193

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? a. $29,978 b. $20,157 c. $25,517 d. $21,946

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

Consider the following incomplete deposit ticket: What was Art's total deposit? a. $1,701.23 b. $1,545.83 c. $1,856.63 d. $1516.35

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

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

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? a. $78,530 b. $12,441 c. $10,481 d. $53,559

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: 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.

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

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

What does it mean for a 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.

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.

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

Which of the following is not considered a buying incentive? a. coupon b. display c. prize d. rebate

Adam invested $12,000 in a six-year CD that paid 7.1% interest, but later needed to withdraw $2,500 early. If the CD's penalty for early withdrawal was eighteen months' worth of interest on the amount withdrawn, how much of a penalty did Adam pay? a. $138.89 b. $177.50 c. $266.25 d. $319.50

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? a. 2.64% b. 3.04% c. 3.72% d. 4.51%

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

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? a. $4,4530,000 b. $445,300 c. $4,453 d. $445.30

Kelly is reconstructing her expenses for the past two weeks. Here are the records of her expenses: Transaction Cost ($) Camera 164 Film 21 Hiking boots 113 First aid kit 12 Radio 27 Overcoat 55 Tent 86 Kelly's bank statement says that she has an ending balance of $349. What is Kelly's starting balance? a. $478 b. $388 c. $827 d. $607

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%

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

What does it mean to be "in the black?" a. Your financial records are in good order. b. Your financial records are being called into question. c. You have more credits than debits. d. You have more debits than credits.

According the the chart below, what percentage of the Simpsons' annual expenses is taxes? a. 10% b. 14% c. 24% d. 34%

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? a. 20.5% b. 12.7% c. 37.7% d. 26.5%

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? a. $15.5 million b. $1.9 million c. $19.8 million d. $18.2 million

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? a. $70.1 billion b. $24.9 billion c. $27.7 billion d. $26.3 billion

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. A $13,000 money market account at Bank T; a $31,000 CD, $44,000 savings account, and $16,000 checking account at Bank U; a $70,000 CD and $28,000 money market account at Bank V b. A $54,000 checking account and $84,000 savings account at Bank T; a $28,000 money market account, $27,000 savings account, and $20,000 CD at Bank U; a $130,000 CD at bank V c. A $60,000 money market account and $70,000 savings account at Bank T; a $40,000 checking account and $92,000 savings account at Bank U; a $45,000 CD and $75,000 checking acount at Bank V d. 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

Irene invested $27,000 in a twelve-year CD bearing 8.0% interest, but needed to withdraw $6,000 after three years. If the CD's penalty for early withdrawal was eighteen months' worth of interest on the amount withdrawn, when the CD reached maturity, how much less money did Irene earn total than if she had not made her early withdrawal? a. $3,600 b. $4,320 c. $720 d. $5,040

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.

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

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

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.

If your essential expenses plus your non-essential expenses are greater than your income, then your financial reserves are growing larger. Please select the best answer from the choices provided T F

The only expenses that can be reduced in order to produce more savings are "Non-essential Expenses" and "Essential (Variable)" expenses. Please select the best answer from the choices provided T F

What kind of financial institutions does the Office of Thrift Supervision oversee? a. Credit unions and local banks b. The stock market c. Savings and loan institutions d. Check clearinghouses

If you wish to calculate the interest on an investment with a rate of 6.17%, what number will you plug into your equation? a. 0.00617 b. 0.0617 c. 0.617 d. 6.17

Ike invests $7,660 in an account paying 7.27% simple interest annually. How much interest has Ike gained after four years? a. $222.75 b. $2,227.53 c. $1,392.20 d. $13,922.05

Explain why you would want to keep some, but not all, receipts as part of your financial records.

You might want to keep receipts for items that may need to be returned or exchanged at the store. Some receipts may be needed to take deductions on taxes. Keeping all of your receipts would be overwhelming and hard to keep track of. It would make it difficult for the receipts you need to be easily accessible.

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

Consider the following incomplete deposit ticket. What was the subtotal of Rachel's deposit? a. $1,145.39 b. $746.23 c. $399.16 d. $1,075.95

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? a. $879 b. $317 c. $873 d. $1,513

You make $443 per week, and have claimed five exemptions. How much money will be withheld from you in a year? a. $2,392 b. $2,288 c. $2,756 d. $2,858

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? a. $230,000 b. $280,000 c. $300,000 d. $390,000

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. Mega Bank Reconciliation Worksheet Amount 1. Enter the statement closing balance. $ 345 89 2. Enter the sum of any outstanding deposits or credits. $ 0 00 3. Add lines 1 and 2. $ 345 89 4. Enter the sum of any outstanding checks or debits. $ 37 51 5. Subtract line 4 from line 3. $ 308 38 6. Enter your checkbook balance. $ 328 37 Note: Lines 5 and 6 should be equal at the end of the reconciliation. 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? a. $17.52 b. $19.99 c. $20.01 d. $37.51

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

A box of chocolates weighs 226.8 grams and costs $14.99. If 1 ounce is approximately 28.35 grams, what is the unit price per ounce of the chocolates? a. $0.53 b. $0.66 c. $1.87 d. $2.33

A clearance rack is marked as 60% off the regular price to be taken at the register. If a jacket on the clearance rack is marked $239.99, what will it ring up for at the register? a. $14.40 b. $60.00 c. $96.00 d. $143.99

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

What does "FDIC" stand for? a. Financial Deposit Institute of Congress b. Financial Deposit Insurance Commission c. Federal Deposit Investigation Council d. Federal Deposit Insurance Corporation

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

Which of the following government agencies regulates financial markets? a. OSHA b. The IRS c. The FAA d. The OTS

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

not a

A financial transaction that is added to a ledger balance is called a credit. Please select the best answer from the choices provided T F

A traditional, physical bank with online options is a type of online bank.

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.

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.

Darius did not keep a perfect record of his expenses for the week. However, he has all but one of his receipts. Darius also knows the total amount of money that he has spent. He enters all of the information he has into his expense spreadsheet as shown below. 2007-03-03-00-00_files/i0100000.jpg How much did Darius spend on going bowling? a. $16.22 b. $27.32 c. $43.97 d. $255.42

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

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

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. 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 b. A $109,000 savings account, $124,000 checking account, and $36,000 money market account at Bank G; a $52,000 CD and $86,000 money market account at Bank H; a $79,000 checking account, $42,000 savings account, and $88,000 CD at Bank I c. A $107,000 money market account and $150,000 savings account at Bank G; a $22,000 checking account, $31,000 savings account, and $40,000 CD at Bank H; a $70,000 CD, $47,000 money market account, and $59,000 savings account at Bank I d. A $28,000 checking account and $30,000 CD at Bank G; a $77,000 savings account, $60,000 money market account, and $28,000 CD at Bank H; a $64,000 checking account, $92,000 CD, and $112,000 money market account at Bank I

In the formula I=P·r·t, what does r stand for? a. Rate: the percent that interest is paid annually as a decimal b. Ratio: the size of the interest interval compared to time c. Return: how much money you end up earning d. Reserves: how much money you have in the investment

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? a. Good Bank will have the least amount in fees per year. b. Great Bank will have the least amount in fees per year. c. Good Bank and Great Bank would have the same costs for Jessie. d. The fees can simply not be estimated in advance, so no decision should be made.

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.

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

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

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. 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

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.

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

Which of these indicates that a bank is likely to be answerable to the Office of the Comptroller of the Currency? a. The bank lists the initials "NA" after its name. b. The bank has the word "Federal" in its name. c. The bank is qualified to give loans. d. The bank is owned by the government.

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. 0.051 b. 0.058 c. 0.019 d. 0.066

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? a. $2,448.02 b. $8,344.10 c. $14,200.39 d. $20,096.67

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.

Michael 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, the amount of cash that he wants, his signature, and what else? a. his date of birth b. his social security number c. the net deposit amount d. the balance of money in the account

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

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

Consider the following incomplete deposit ticket: 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

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? a. $5,280.15 b. $1,270.40 c. $4,045.66 d. $4,843.40

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? a. The bank offers $100 to customers who get a pre-approval for a home loan. b. The bank provides ATMs in all the suburbs where Steve is interested in living. c. Banks that provide home loans can usually charge lower fees on checking accounts. d. If he needs a home loan in the future, he will have a relationship with the bank.

Taking successive discounts of 15% off and then 25% off is the same as taking a one time discount of 40%.

To calculate the unit price of an item, divide the total number of units by the total price.

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

not b

Why does the FDIC place a limit on the amount of money it will insure? a. The FDIC has only limited reserves. b. Limiting the amount of money insured encourages people with a large amount of money to spread their money out among different banks, which stimulates the economy. c. The FDIC believes that insuring too much money encourages reckless investing. d. The limit prevents the money used to replace lost deposits from being taxed.

not b

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

not d

Which of the following is not protected by the FDIC? a. Safety deposit boxes b. Savings accounts c. Checking accounts d. Certificates of Deposit ("CDs")

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