financial math

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

A

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

A

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

A

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

A

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

A

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

A

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

D

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

D

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

F

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

F

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

the cash inflow should be less than the cash outflow.

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

when a company spends more money than they make

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

Barry gets hurt at work and must go on disabililty for 4 months. On disability, the pay that Barry receives is 60% of his normal net pay. Barry should be fine if he has a plan for _____. a. financing b. managing his income c. managing his liquidity d. protecting his assets

c. managing his liquidity

A single person earns a gross biweekly salary of $780 and claims 6 exemptions. What is the person's net pay? a. It is the same as the gross pay. b. It is $11 more than the gross pay. c. It is $11 less than the gross pay. d. It is $13 less than the gross pay.

A

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

A

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

A

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

A

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

A

Jasmine has a gross pay of $754.80. By how much will Jasmine's gross pay be reduced if she has the following items withheld? federal tax of $31 Social Security tax that is 6.2% of her gross pay Medicare tax that is 1.45% of her gross pay state tax that is 18% of her federal tax a. $94.32 b. $192.83 c. $224.60 d. $323.11

A

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

A

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

A

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

A

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

A

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

A

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

A

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

A

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

C

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

C

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

C

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

C

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

C

Marilyn has a biweekly gross pay of $810 and claims 3 federal withholding allowances. Marilyn has all of the following deductions from her gross pay: federal tax from the following table 2007-02-03-00-00_files/i0190000.jpg Social Security tax that is 6.2% of her gross pay Medicare tax that is 1.45% of her gross pay state tax that is 21% of her federal tax Determine how Marilyn's net pay will be affected if she increases her federal withholding allowances from 3 to 4. a. Her net pay will increase by $15.00. b. Her net pay will decrease by $15.00. c. Her net pay will increase by $18.15. d. Her net pay will decrease by $18.15.

C

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

C

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

B

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

B

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

B

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

C

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

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

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

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

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

b. $624

The table below shows the typical hours worked by employees at a company. A new employee is offered an annual salary of $37,000. Hourly employees get paid $14 per hour, but get $21 per hour for each hour over 40 hours. Should the new employee choose the salaried or hourly pay? Explain your reasoning. Sun. Mon. Tues. Wed. Thurs. Fri. Sat. 0 8.5 9.5 7.5 8 8.5 4

if u have worked at least 40 hours 40 * 14 would be $560 but if u got over 40 lets say 46 u do $560+ 126 (21*6) you would end up with $686 per week u work

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

A

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

A

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

A

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

A

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

A

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

A

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

D

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

A

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

A

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

A

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

A

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

A

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

A statement of an employee's biweekly earnings is given below. Earnings Deductions Week Ended Regular FED. SOC. MED STATE WITH. WITH. CARE. WITH. NET PAY 8/18 $_____ $62.00 $45.06 $10.54 $12.40 $596.80 What is the employee's gross pay? a. $703.86 b. $714.40 c. $716.26 d. $726.80

D

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

B

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

C

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

C

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

C

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

C

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

A

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

A

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

A

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

A

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

A

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

A

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

A

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

A

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

A

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

A

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

A

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

A

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

A

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

B

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

C

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D

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

D