Financial Math - Complete edge

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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

$458.57

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

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

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

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

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

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

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

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

The following federal tax table is for biweekly earnings of a single person. A single person earns a gross biweekly salary of $780 and claims 6 exemptions. How does their net pay change due to the federal income tax withheld? a. No federal income taxes are withheld. b. They will add $11 to their gross pay. c. They will subtract $11 from their gross pay. d. They will add $13 to their gross pay.

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

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

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

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

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

Use the following federal tax table for biweekly earnings of a single person to help answer the question below. Mario has gross biweekly earnings of $784.21. By claiming 1 more withholding allowance, Mario would have $13 more in his take home pay. How many withholding allowances does Mario currently claim? a. 3 b. 4 c. 5 d. 6

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

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.

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

What is the purpose of the Electronic Funds Transfer Act? a. It limits your liability if your ATM card is stolen. b. It limits the amount of money that can be electronically transferred between two bank accounts in one day. c. It monitors the amount of money that banks transfer electronically. d. It charges a tax on money transferred electronically.

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

Which of the following 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 is not a good plan for achieving goals? a. Set goals higher than what you feel you can achieve. b. Be positive about achieving your goals. c. Continue to monitor your plan for achieving your goals. d. Keep reminding yourself of your goals.

Which of the following is not a way in which the Federal Reserve ("the Fed") and its policies affect banks? a. The Fed sets a maximum on the interest rates banks can charge for loans or credit. b. The Fed's required reserve policy limits how much money banks can lend out. c. The Fed determines at what price banks must lend money to one another. d. The Fed serves as "the bank's bank," lending other banks money when necessary.

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")

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 about the NCUA is correct? a. The NCUA is similar to the FDIC, but it insures credit unions instead of banks. b. The NCUA is an independent coalition of credit unions that works to protect investors. c. The NCUA is the branch of the FDIC that insures credit unions. d. The NCUA controls the amount of money banks have available to lend out.

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.

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.

Yvonne continues to work full-time at her job while she attends college part-time. It takes 5 years for Yvonne to complete the program, but when she does she is able to increase her salary from $37,000 per year to $45,000 per year. At this rate, Yvonne will have recovered her college costs after 4.5 years. How much did it cost Yvonne to go to college? a. $36,000 b. $45,000 c. $40,000 d. $32,000

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

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

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

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

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

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

Breanna works in the mall and her hours increase during busy shopping times of the year. Breanna has a plan to save $25 each week for 5 weeks, and then increase that amount by $20 for the next 7 weeks during the busy time, then go back to $25 per week. If Breanna's plan is to save $540, how many weeks total will she need to save? a. 11 weeks b. 16 weeks c. 22 weeks d. 23 weeks

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.

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

Consider the following incomplete deposit ticket: What was the value of the third check Tony deposited? a. $617.60 b. $105.20 c. $31.28 d. $36.76

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

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

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

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

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

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

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

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

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

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

In order to reduce their debt, the Johnsons sold some real estate property valued at $165,000 for $143,000. They paid off a loan balance of $100,000 and put the rest in savings. Which of the following is a true statement? a. The Johnsons increased their liabilities. b. The Johnsons increased their liquid assets. c. The Johnsons increased their net worth. d. The Johnsons increased their use assets.

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.

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

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

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

Look at the following financial ledger: 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

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.

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

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

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

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

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

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.

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

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

Rounded to the nearest thousandth, what is the decimal equivalent of %? a. 0.067 b. 0.068 c. 0.677 d. 0.678

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

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

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 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

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.

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

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

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

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

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

Based on the above table, which occupation listed is projected to have the greatest total number of jobs in 2016? a. Network systems and data communications analysts b. Personal and home care aides c. Home health aides d. Personal finance advisors

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

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

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

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

Kyle uses a spreadsheet to keep track of his spending. This is an example of Kyle's spreadsheet for two months: 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

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

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

Martha earned a gross pay of $1,215.60 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social security tax deducted from Martha's gross pay. a. $7.54 b. $65.37 c. $75.37 d. $75.40

Max has a monthly salary of $1,100 and also earns 7.5% commission on his sales. If Max had $43,000 in sales last month, what were his total earnings for the month? a. $3,225 b. $4,050 c. $4,325 d. $5,150

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

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.

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

Sheila has a plan to save $45 a month for 18 months so that she has $810 to remodel her bathroom. After 13 months Sheila has saved $510. If the most Sheila can possibly save is $70 per month, which of the following statements is true? a. Sheila will meet her goal and does not need to adjust her plan. b. Sheila must save $50 per month to achieve her goal. c. Sheila must save $60 per month to achieve her goal. d. Sheila will not be able to achieve her goal.

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.

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%

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

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.

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

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

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 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

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

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

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.

You are examining your choices of banks to open a new checking account. Potential costs include monthly maintenance fees, statement copy fees, and ___________. a. Credit cards b. Debit cards c. Overdraft fees d. Interest on deposits

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

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 $3,750 to deposit. If you deposit the money in a savings account at your local bank, you will earn 1.75% annual interest and will be able to make ATM withdrawals at your bank's ATMs. If you deposit the money in an online savings account, you will earn 3.25% interest, but you will be charged $4 every time you make an ATM withdrawal. Assuming that your ATM withdrawals do not reduce the amount of interest you earn, roughly how often must you make an ATM withdrawal for the local savings account to be a better deal than the online savings account? a. Thirteen times per year b. Once per month c. Every three weeks d. Every two months

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

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

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

Ian invests $13,670 in a savings account at his local bank which gives 1.9% simple annual interest. He also invests $6,040 in an online savings account which gives 4.5% simple annual interest. After nine years, which one will have earned more interest, and how much more interest will it have earned, to the nearest dollar? a. The local account will have earned $7,521 more interest. b. The local account will have earned $3,199 more interest. c. The online account will have earned $3,090 more interest. d. The online account will have earned $109 more interest.

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

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

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 shopping budget

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

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

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

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

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

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

d. protecting assets

Trevor earns $7.80 an hour take home pay and works 20 hours each week. Trevor wants to buy a new laptop computer to take to college that costs $780. How many weeks will it take for Trevor to achieve his goal? a. 4 weeks b. 5 weeks c. 6 weeks d. 7 weeks

Certain investments compound interest at different intervals. What effect does the size of the compounding interval have on the yield of the investment? a. Investments with smaller compounding intervals have a higher yield, because the interest earned is reinvested more quickly and thus gains compound interest more quickly. b. Investments with smaller compounding intervals have a lower yield, because the interest earned is smaller at each interval. c. The size of the compounding interval does not affect the total yearly interest percentage rate and only exists for bookkeeping purposes. d. Investments with smaller compounding intervals have a lower yield, because the bank charges a small fee every time interest is compounded.

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

Cottage cheese is being sold in different size containers. The sizes and prices are given below: 4 - 5 ounce containers for $5.00 1 - 12 ounce container for $3.24 1 - 16 ounce container for $4.19 Which container is the better buy? a. The 5 ounce container is the better buy. b. The 12 ounce container is the better buy. c. The 16ounce container is the better buy. d. The containers have the same unit price.

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

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

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

Given the 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.

If $2300 is spent on vacations or travel each year, estimate how much should be set aside each month for those expenses? a. Approximately $200 per month should be set aside for vacation or travel expenses. b. Approximately $2300 per month should be set aside for vacation or travel expenses. c. Approximately $1250 per month should be set aside for vacation or travel expenses. d. Approximately $230 per month should be set aside for vacation or travel expenses.

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

In 2007, the FDIC's insurance limit was $100,000 per person per bank. If Sam had a $150,000 savings account and $80,000 checking account at Bank J, a $95,000 money market account at Bank K, and a $200,000 savings account at Bank L, how much of Sam's money was FDIC insured? a. $295,000 b. $300,000 c. $375,000 d. $525,000

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.

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

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

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

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

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

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

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. How much did Mario spend on golfing? a. $35.20 b. $45.20 c. $47.88 d. $143.96

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

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

Mr. Chavez has assets of $250,000 and liabilities of $18,000. He decides to finance the entire amount of the purchase of a car valued at $26,000. Which of the following is true? a. Mr. Chavez increased his assets. b. Mr. Chavez increased his net worth. c. Mr. Chavez increased both his assets and net worth. d. Mr. Chavez did not increase his assets or his net worth.

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

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

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

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

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

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

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

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

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

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

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

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

The Svensons find a refrigerator valued at $2,300 on sale for $1,900. They decided to withdraw $500 from savings to use as a down payment on the purchase of the refrigerator and took out a loan to pay the balance. Choose the true statement. a. The Svensons' assets increased by $1,400. b. The Svensons' assets increased by $1,800. c. The Svensons' assets increased by $1,900. d. The Svensons' assets increased by $2,300.

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

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

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

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

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

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

Use the tax table below to answer the following question. Consider cases where the number of withholding allowances is less than 6. Which will cause the amount of federal income tax withheld to increase? a. Gross pay stays the same and withholding allowances increase. b. Gross pay increases by more than $20 and withholding allowances stay the same. c. Gross pay increases by more than $20 and withholding allowances increase. d. Gross pay decreases by more than $20 and withholding allowances stay the same.

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.

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.

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

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

Which of the following is true? a. net cash flow - cash outflow = cash inflow b. net cash flow + cash outflow = cash inflow c. net cash flow + cash inflow = cash outflow d. cash inflow + cash outflow = net cash flow

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 products represents % tax, in dollars, on a price of $14.29? a. (0.00675)(14.29) b. (0.0675)(14.29) c. (0.675)(14.29) d. (6.75)(14.29)

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

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

Which of these is an appropriate attitude to take toward personal budgets? a. Personal budgets are mainly useful for managing financial trouble or getting out of debt. b. Personal budgets are useful regardless of your financial status and can be used by anyone. c. Personal budgets make a good tool for beginners or those just starting out, but those with more experience should try to avoid relying on them. d. Personal budgets are useful for people with many investments or large amounts of wealth, but are largely a waste of time for more average people.

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.

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 a restaurant bill of $46.32. If you are taxed % and decide to tip your server 20%, how much is your total? a. $59.75 b. $59.05 c. $58.92 d. $58.87

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

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

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

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

Glenda makes an online purchase of 4 picture frames for $12.95 each and 4 mats for $5.89 each. The site says that taxes paid by the customer are 6.5% of the total purchase price. Shipping charges are based on the following table: Amount of Purchase Standard Shipping Express Shipping up to $50 $5.10 $7.00 $50 up to $100 $6.35 $8.20 $100 up to $200 $7.80 $11.60 $200 and over $10.50 $16.45 Glenda selects express shipping for her purchase and the company bills her credit card $91.86 for the total of the online purchase. Determine if Glenda has been billed correctly for her purchase. a. Glenda has been billed correctly. b. Glenda has not been charged enough for her purchase. c. Glenda has been over charged by $3.40 for her purchase. d. Glenda has been over charged by $3.80 for her purchase.

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

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

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

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

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

Jenna wants to save a $10,000 trust fund she received when she turned 21, and add $50 per month as emergency funds. She has narrowed her search for a savings account to 2 banks, Bank A and Bank B. Bank A pays a fixed rate of interest, and Bank B pays a variable rate, but both rates are currently the same. Jenna's trusted friend advises her to make the selection based upon her banking needs in consideration of the other services and fees of the banks, because the interest rates are the same. If you were advising Jenna about how to choose an account based upon her own needs, what advice below would you not give her? a. The fees and services will make a much bigger difference than the type of interest while your balances are small. b. The more that you expect to save, the more you should think about what effect the interest rates might have in respect to your values. c. Choose the variable rate because if it goes up, you will make a lot of money that will pay for the fees. d. With either bank, you will be earning a competitive rate of interest. You can re-evaluate once a year in comparison with other banks' interest rates.

Katherine invests $7,770 in a six-month money market account giving 5.8% simple annual interest and $12,500 in a three-year CD giving 7.25% simple annual interest. Assuming that Katherine does not reinvest or renew these investments, how much money will she have when both investments reach maturity, to the nearest dollar? a. $2,944 b. $15,219 c. $23,214 d. $30,886

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

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

Occupation Median Annual Earnings (Dollars) Postsecondary Education or Training Category Sheet metal worker 37,360 Long-term on-the-job training Massage therapist 33,400 Postsecondary vocational award Religious worker 24,330 Bachelor's degree Mathematician 86,930 Doctor's degree Makeup artist 31,820 Postsecondary vocational award Private detective 33,750 Work experience in a related occupation U.S. Bureau of Labor Statistics, 2006. Jasmine wants to enter a career with median earnings of at least $33,500, but she doesn't want to go to college. Which of the following occupations fits her plan? a. Makeup artist b. Mathematician c. Private detective d. Massage therapist

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

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

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

Rex has several hundred thousand dollars to save, and he wants to keep it as safe as possible. What would you recommend Rex do to keep his money safe? a. Deposit the money in a bank, ideally in a single well-protected account. b. Deposit the money in a bank, but in several different accounts. c. Deposit the money in several banks, not putting too much money in any one. d. Keep the physical cash at home in a fireproof safe.

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

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

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.

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

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

The actual income for this month has been reduced by $200. How can this budget be modified so there will be a positive actual net income? Monthly Budget Budgeted Amount Actual Amount Income Wages $1250 $1050 Expenses Rent Utilities Food Clothes Cell Phone $450 $150 $220 $200 $75 $____ $____ $____ $____ $____ Net Income $155 $____ a. This budget can be modified by increasing the amount spent on food and utilities and decreasing the amount spent on clothes and rent, thereby maintaining a positive actual net income. b. This budget can be modified by reducing the amount spent on rent and utilities, thereby reducing overall expenses to have the maximum amount of money for all other expenses. c. This budget can be modified by reducing the amount spent on food and clothes, thereby reducing overall expenses to have the maximum amount of money for fixed expenses and maintaining a positive actual net income. d. This budget cannot be modified.

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

The table below shows the typical hours worked by employees at a company. A salaried employee makes $67,000 per year. Hourly employees get paid $25 per hour, but get $37.50 per hour for each hour over 40 hours. Sun. Mon. Tues. Wed. Thurs. Fri. Sat. 0 10 8 8 7 6.5 4.5 Which of the payment options would you recommend to a new employee? a. Either one. Hourly and salaried employees earn the same amount per week. b. Hourly pay. Hourly employees make more per week than salaried employees. c. Salaried pay. Salaried employees make more per week than hourly employees. d. There is not enough information given to compare weekly earnings.

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

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

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

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

Using mental math, the approximate tip to leave for a bill of $81.79, if you tip 15% would be _____.. a. $8.20 b. $10.30 c. $12.30 d. $16.40

What does a negative net worth indicate? a. Your assets exceed your liabilities. b. Your assets equal your liabilities. c. Your liabilities exceed your assets. d. You have only assets and no liabilities.

What is a "balance brought forward?" a. The amount of money you transfer from another checking account b. The amount of money you will owe in the future c. The amount of money you have from the previous statement period d. The amount of money you used to open your account

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

Which of the following could be true if one decreases their long term liability and increases their liquid assets? a. Paid off credit card balance and added money to savings. b. Paid off medical bills and invested money. c. Paid down mortgage and received a cash prize. d. Paid taxes owed and bought a car.

Which of the following government agencies does not regulate banking or financial markets? a. The NCUA b. The Federal Reserve c. The FCC d. The OCC

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

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

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

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

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

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

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

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

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

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.

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

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld? federal tax of $92 Social Security tax that is 6.2% of his gross pay Medicare tax that is 1.45% of his gross pay state tax that is 22% of his federal tax a. $82.66 b. $129.13 c. $164.01 d. $174.66

Melinda kept a record of her spending for the week. She spent $25 to put gas in the car, bought a new shirt for a total of $22.38, played putt-putt golf with some friends that cost $6.95 and paid $38.71 for a few groceries. What was the total of Melinda's expenses for the week? a. $68.24 b. $86.09 c. $91.94 d. $93.04

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

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

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

Nick is making a deposit with a check and wants cash back. His deposit slip has his name, his account number, the date, the amount of the check, his signature, the total deposit amount, and what else? a. A record of his last deposit b. The check number c. His account balance d. The amount of cash he wants

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

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

Ozzie has a coupon for 5% off any purchase in his favorite bakery. When Ozzie stops to buy some cookies, he discovers that all cookies are on sale for 15% off the regular price. The cookies are regularly $5.89 per dozen. If Ozzie uses his coupon and pays 7% sales tax, how much does he pay for two dozen cookies? a. $9.42 b. $9.51 c. $10.08 d. $10.18

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

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

Scott earns $16.85 per hour at his job. He works 7 hours per day, 4 days per week. What is Scott's gross monthly income for 4 weeks? a. $471.80 b. $943.60 c. $1,415.40 d. $1,887.20

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.

The Changs updated their bedroom by purchasing a new lamp for $89.95 and a comforter set for $239.99. They paid % 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 Greens want to put an addition on their house 18 months from now. They will need to save $10,620 in order to achieve this goal. They set aside the same amount each month, and after a year discover they have saved $6,120. The Greens must adjust their plan in order to meet their goal, so they came up with the following options: Option A: Stay with saving the original amount each month but put the addition on one month later than originally planned. Option B: Increase the amount of money they save each month by $120 from their original plan. Which of the following statements is true? a. Only option A will allow them to meet their goal. b. Only option B will allow them to meet their goal. c. Both options A and B will allow them to meet their goal. d. Neither option A nor option B will allow them to meet their goal.

The car owned by a person is part of his or her ____. a. investment assets b. liquid assets c. long term assets d. use assets

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

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.

What is true about the way you should approach financial goals across different stages of your life? a. Failure to meet a financial goal is a sign of personal weakness, so you should never alter a goal until you have completed it exactly as you imagined it. b. You need to be consistent and determined when it comes to financial goals. The financial goals you make as a young adult should stay in place for the rest of your life. c. Most people tend to make more money as they grow older and more experienced. After a certain point in your life you should have enough money to meet all of your financial goals, at which point you will no longer need to concern yourself with long-term goals. d. As you progress through life, your values and financial possibilities will gradually change, which leads to an evolution of your financial goals over time.

Where does the FDIC's reserve fund come from? a. The FDIC has access to federal tax revenue. b. If an insured bank fails, the FDIC keeps the money at that bank that is beyond the insured limit. c. A certain amount of money goes directly from the Treasury to the FDIC's reserve fund. d. Insured banks pay a premium on the money insured.

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. 28/$2.89 d.$2.89/28

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

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

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

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

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

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

Which of the following spreadsheets shows the financial plan with the greatest net cash flow? a. total cash outflow - $2,335 b. total cash outflow - $2,260 c.total cash outflow - $2,380 d.total cash outflow - $2,055

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

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.

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