Math 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

Consider the following incomplete deposit ticket: How much cash did Liz receive?

$458.57

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

A

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

A

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

A

Say that you own property with a market price of $74,000. The state tax assessors have given it an assessed value of 48% of that amount. If your state's property tax rate is 0.031, how much do you owe in property tax, to the nearest dollar? a. $1,101 b. $2,294 c. $35,520 d. $1,193

A

Select the budget that would most quickly achieve the financial goal of saving $6000 for college tuition. a.Budget A b.Budget B c.Budget C d.Budget D

A

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

A

Frank has $66.50 in his account on Sunday. Over the next week, he makes the following changes to his balance via deposits and purchases: On what day does Frank first get charged an overdraft fee? a. Wednesday b. Thursday c. Friday d. Saturday

A

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

B

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

A

Which of the following characteristics does apply to Medicare Part A but does not apply to Medicare Part B? a. Available only to those over 65 b. Covers hospital inpatient services c. Available to the spouse of beneficiaries d. Usually costs a monthly premium

B

KaiLynn has total job benefits of $41,000 per year in her sales job. She pays $63 each month for a cell phone for work. She is also required to purchase samples kits which cost $235 each. If KaiLynn paid for 4 samples kits last year, what was her total employment compensation? a.$39,304 b.$40,060 c.$40,244 d.$42,696

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

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

A

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

B

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

A

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

A

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

A

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

Raquel has gross pay of $732 and federal tax withholdings of $62. Determine Raquel'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 21% of her federal tax a.$600.99 b.$610.54 c.$641.83 d.$662.99

A

The Long family spent $38.62 for school supplies and $215.78 for new school clothes. They paid 6 4/5% sales tax on their purchases. If the Long family paid $269.07 total, determine if they paid the correct amount. a. The Long family paid $2.63 too little for their purchases. b. The Long family paid the correct amount for their purchases. c. The Long family paid $1.61 too much for their purchases. d. The Long family paid $2.63 too much for their purchases.

A

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

A

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. 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

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

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

A

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

B

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

A

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

A

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.

A

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

A

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

A

Which of the following is 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.

A

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

A

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.

A

Why is it sometimes easier to open an account with a bank rather than with a credit union? a. Most credit unions require some kind of affiliation, but banks will let anyone with money open an account. b. Credit unions usually require more paperwork than banks. c. Banks can generally open an account immediately, but credit unions require a waiting period. d. Banks can open accounts over the phone or online, but credit unions can only open accounts in person.

A

Yolanda makes $1,196 gross income per week and has claimed two allowances. According to the table below, what is Yolanda's weekly net income after tax withholding? a. $879 b. $317 c. $873 d. $1,513

A

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

A

Describe the key features of a financial record keeping system.

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

Evelyn spent the day shopping and made the following purchases: When Evelyn was done, she checked her account balance and found she had a total of $208.16. How much money was in Evelyn's account to begin with? a. $110.63 b. $305.69 c. $315.47 d. $97.53

B

MaryLiz claims single having no exemptions. Her state tax deduction is 18% of her federal tax contribution. Calculate the amount of state tax MaryLiz owes if her gross pay for two weeks is $800. The following federal tax table is for biweekly earnings of a single person. a.$16.02 b.$16.56 c.$92.00 d.$127.44

B

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

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

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

Calculate 6 3/4% tax on $2,305. a. $15.56 b. $145.22 c. $146.14 d. $155.59

D

Consider the following incomplete deposit slip: How much cash did the person who filled out this deposit slip receive? a. $849.25 b. $715.56 c. $7,621.53 d. $721.50

D

Mark lives in a state that charges him 6.1% income tax on his federal taxable income. If his federal taxable income is $79,400, how much does Mark pay in state income tax? a. $5,280.15 b. $1,270.40 c. $4,045.66 d. $4,843.40

D

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

D

All debit cards can pull money from a credit balance.

F

To calculate 4 1/5% tax on $63.78, multiply 4.2 times 63.78.

F

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

T

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

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

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

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

Sammy makes $2362/month as a baseball coach. He is making a budget, and has made the following chart in order to divide his monthly paycheck into his accounts: Sammy has included a total row to help make sure that his paycheck can be divided to make deposits into these 4 accounts. If there were any extra, then he would increase one or all of the deposits. If there were not enough, he would decrease one or all of the deposits. Explain how Sammy calculated his total amount deposited.

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

Adam makes $632 gross income per week and has claimed four allowances. According to the table below, what is Adam's net income after tax withholding? a. $99 b. $533 c. $731 d. $502

B

Adam's bank account has a balance of $1213.69 before he starts spending money. He makes the following transactions: Adam is considering getting his car a new paint job. Doing so will have a total cost of $264.83. Can Adam afford this? a. Yes, he can make the purchase and still have money left over. b. Yes, but doing so will clear out his account. c. No, purchasing that would overdraw his account. d. No, he is overdrawn already.

B

Allen bought 1,350 shares of stock for $12 per share. If he sold all his shares for $27,000, how much profit on each share did he make? a.$6 b.$8 c.$10 d.$12

B

An employee has an annual salary of $48,700. They receive $1,530 in health insurance and $2,810 in paid time off per year. They drive their personal vehicle for work which costs them $500 per month, but the company reimburses them $0.53 per mile for the total work miles driven. If the employee drives 9,000 miles for work for the year, what will be their total employment compensation? a.$43,130 b.$51,810 c.$57,810 d.$59,470

B

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.

B

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

B

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

B

Desiree works 28 hours per week. She has a monthly income of $120 from investments. Desiree also plays in a band one night a week making $200. She has a total annual income of $49,696. Desiree wants to ask her boss for a raise so that next year she can have a total income of $51,880. Assuming the other incomes remain the same, how much of an hourly raise will Desiree need? a.$1.25 b.$1.50 c.$1.75 d.$2.00

B

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

B

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

B

Given the following information, determine if one of the brands is a better buy. Brand A: 14 ounces for $33.18 Brand B: 22 ounces for $52.80 a. Both brands cost the same per ounce. b. Brand A is the better buy. c. Brand B is the better buy. d. There is not enough information provided to determine the better buy.

B

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

B

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

B

If 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

B

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.

B

Irving spent the day shopping and made the following purchases: When Irving was done, he checked his account balance and found he had a total of $95.06. How much money was in Irving's account to begin with? a. $56.43 b. $151.49 c. $38.63 d. $142.36

B

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

B

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.

B

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

B

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

B

Tax returns filed manually have a 20% chance of containing errors, while tax returns filed electronically have a 0.05% chance of containing the same. If 2.7 million tax returns are filed each way, how many more erroneous manually filed returns will there be than erroneous electronically filed returns? a. 270,675 b. 538,650 c. 541,350 d. 269,325

B

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

B

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

A

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

A

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

A

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

A

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

A

Calculate the income needed based on the following budgeted expenses. 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

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

A

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

A

Determine the total annual FICA tax for an annual salary of $63,250. a. $4,838.63 b. $7,538.73 c. $48,386.30 d. $75,387.30

A

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

A

Abigail has an account that pays 6.92% simple interest per year and wants to accumulate $5,896 in interest from this account over six years. How much money should Abigail invest in this account to meet this goal? a. $2,448.02 b. $8,344.10 c. $14,200.39 d. $20,096.67

C

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

C

Andrew earns $45,300 in taxable income annually, and pays federal income taxes of $5,345.40. What is Andrew's net federal income tax rate? a. 8.47% b. 15.1% c. 11.8% d. 9.1%

C

Anna has $274.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: On which day or days does Anna get charged an overdraft fee? I. Wednesday II. Thursday III. Friday a. I only b. I and II c. II and III d. III only

C

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

C

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

C

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

C

Henry is moving and needs to open a new checking account. He is trying to decide between three banks using the chart below: Henry usually has about $300 in his account at any given time during the month. He limits his ATM visits to one per week and is interested in banking online options. Bank X and Bank Z have 5 ATMs within a 5 mile radius of Henry's work and his new home. Which bank should he choose? a. Bank X b. Bank Y c. Bank Z d. Bank X and Z

C

How is a debit card similar to an ATM card? a. Each is only available to adults 18 and older. b. Any one person can only have one of each at a time. c. Both can be used to withdraw money from ATMs. d. Both can be used to make purchases online.

C

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

C

Ian's house and land have a market price of $225,000 and an assessed value of 55% of that amount. His state has a property tax rate of 0.088. How much does Ian pay in property tax every year? a. $19,800 b. $18,900 c. $10,890 d. $8,910

C

Kelly is reconstructing her expenses for the past two weeks. Here are the records of her expenses: Kelly's bank statement says that she has an ending balance of $349. What is Kelly's starting balance? a. $478 b. $388 c. $827 d. $607

C

Manny makes the following purchases at the store: pair of jeans for $32.65 3 t-shirts for $14.89 each pair of sneakers for $39.99 The store is having a promotional sale where 10% is taken off of each customer's total purchase before tax. The sales tax is 8%. If Manny paid $114.03 , then he _____ for his purchase. a. paid $5.63 too little b. paid $3.28 too little c. paid the correct amount d. paid $8.45 too much

C

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. a. $9.54 b. $12.26 c. $12.90 d. $18.64

C

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

C

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

C

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

C

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

C

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

C

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

Rank the 1040 forms in order from simplest to most complex. a. 1040-A, 1040-EZ, 1040 b. 1040-EZ, 1040, 1040-A c. 1040-EZ, 1040-A, 1040 d. 1040, 1040-EZ, 1040-A

C

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.

C

Robert is currently working for a landscaping company earning $1520 per month. He has a dream of starting his own landscaping company and figures he would need to save $5000 to buy his own equipment. Select the budget that would help Robert most quickly achieve his financial goal of starting his own business, while still meeting his basic needs. a. Budget A b. Budget B c. Budget C d. Budget D

C

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

C

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

C

Sally has just finished her thirty-fifth year with her company and is getting ready to retire. During her thirty-five years, Sally's average annual salary was $45,603. How much can Sally expect to receive from Social Security annually if she were to retire today? (Assume she will receive 42% of her average annual salary.) a. $191.53 b. $1,915.33 c. $19,153.26 d. $191,532.60

C

Sienna wants to set up a special fund so she can save to buy presents for her friends and family throughout the year. If her gift purchases last year totalled $580, estimate how much she should save each month to have approximately the same amount available for gifts next year? a. Approximately $480 b. Approximately $58 c. Approximately $48 . d. Approximately $96

C

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

C

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

C

Which method or methods listed below describe a solid system for keeping financial records? I. Making a mental note of all purchases made during the week. II. Recording money spent in a hand-held notebook. III. Organizing receipts and transactions on a computer. a. I only b. II only c. II and III d. I, II, and III

C

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

C

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

C

Which of the following is an example of earning income from capital gains? a.hourly employee earning $17 per hour b.salaried employee earning $56,000 per year c.selling a car and making a profit of $3,000 d.selling stocks for a total of $5,000

C

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

C

Which of the following statements accurately describes the result of a decreasing worker-per-beneficiary ratio in the Social Security system? a. Fewer taxed workers than beneficiaries means that the system is collecting more money for the money being drawn out. This leaves money in the system and secures benefits for future beneficiaries. b. Fewer taxed workers than beneficiaries means that the system is collecting more money for the money being drawn out. This leaves a shortage of money in the system making benefits for future beneficiaries unsure. c. Fewer taxed workers than beneficiaries means that more money is being drawn from the system for the money put in. This leaves a shortage of money in the system making benefits for future beneficiaries unsure. d. Fewer taxed workers than beneficiaries means that more money is being drawn from the system for the money put in. This leaves money in the system and secures benefits for future beneficiaries.

C

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.

C

Alejandro lives in a small apartment, within walking distance to school. He takes the bus to work where he makes $10 per hour after taxes and works 30 hours per week. He wants to save money to buy a $6000 car within the next 2 years. How could a monthly budget be created to help Alejandro meet his financial goals? Select the best option. a. Budget A b. Budget B c. Budget C d. Budget D

D

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

D

Analyze the following budget, with an income of $750, to determine how much can be spent on food for the month. a. No more than $70 can be spent on food. b. No more than $75 can be spent on food. c. No more than $80 can be spent on food. d. No more than $60 can be spent on food

D

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

D

Arthur's yearly taxable income totals $116,600, and he pays $30,910.66 in federal income tax every year. Approximately what is Arthur's net federal income tax rate? a. 20.5% b. 12.7% c. 37.7% d. 26.5%

D

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

D

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

D

Determine the total annual FICA tax for an annual salary of $38,480. a. $294.37 b. $717.96 c. $2,385.76 d. $2,943.72

D

For each of the following wages, determine the Social Security tax that would be withheld. i. $23,660 ii. $89,000 iii. $166,090 a. i. $146.69 ii. $551.80 iii. $1,029.76 b. i. $1,466.92 ii. $5,518.00 iii. $10,297.58 c. i. $146.69 ii. $551.80 iii. $662.16 d. i. $1,466.92 ii. $5,518.00 iii. $6,621.60

D

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

D

If you were teaching a foreign visitor about checking and savings accounts at banks and credit unions in the USA, which item below would you say consumers of these accounts usually do not have as a protection of their rights? a. Government-backed insurance on the deposits. b. Regulation of bank practices by government agencies. c. A written statement providing the current fees and policies for the account. d. No automatic fees charged to the account.

D

Jason keeps a record of his transactions in a notebook. Looking over his records for the past two weeks, Jason finds that his bank statement does not match his notebook, and he actually has less money than he thought he did. These are the relevant entries in Jason's notebook: However, Jason's bank statement says that his ending balance is $473.33. Which of the following is a possible explanation for the discrepancy? a. Jason actually made two $20 charitable donations but forgot to write one of them down. b. Jason listed the refund as a credit, but it should be a debit. c. Jason listed the groceries out of habit, but he did not actually purchase them this week. d. Jason transposed the digits on the microwave's price, which actually cost $86.74.

D

Jennifer earns $17.35 per hour at her job. She works 6 hours per day, 5 days per week. What is Jennifer's gross income for a 2 week pay period? a.$520.50 b.$694.00 c.$867.50 d.$1,041.00

D

Kevin, while calculating his tax adjustments, notes that he can make adjustments of $3,435 for contributions to his retirement plan, $3,393 for business losses, and $1,128 for business expenses. If Kevin's gross income is $45,942, what is his adjusted gross income? a. $53,898 b. $40,242 c. $41,421 d. $37,986

D

Lakisha's employer pays $2,150 in health insurance and $86 in life insurance per year. She also gets $3,520 in paid time off per year. Her monthly gross pay is $4,370. What are Lakisha's total job benefits per year? a.$5,756 b.$10,126 c.$52,440 d.$58,196

D

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

D

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

D

Ralph's annual expenses for the upcoming year are summarized in the chart below. Based on the information in the graph, approximately what percent of his total annual income is Ralph having withheld for taxes? a. 6% b. 18% c. 30% d. 36%

D

Sandy and Alex are married, with no dependents. They wish to file a joint tax return. Both of them work, but their combined salaries only put them at a slightly above-average income. They would also like to deduct interest paid on their student loans. Recommend an appropriate 1040 form for Sandy and Alex to fill out. a. 1040 b. 1040-EZ c. 1040-2 d. 1040-A

D

Sandy is trying to reconstruct her spending pattern from July. She knows that she had $277 in her account on July 1, but after that, her receipts and balance statements are all scrambled. Here are Sandy's records: Assuming that this is a complete, if scrambled, record of Sandy's July spending and that any overdraft fees incurred do not affect the running total, how many times did Sandy overdraw her account in July? a. Sandy never overdrew her account. b. Sandy only overdrew her account once. c. Sandy overdrew her account twice. d. Sandy overdrew her account more than twice.

D

Shaquil receives total employee benefits that are 13.5% of his gross annual pay. If Shaquil has a gross annual pay of $40,000, how much in total employee benefits does he receive? a.$5.40 b.$54.00 c.$540.00 d.$5,400.00

D

Vera orders some prints of photos that she uploaded to her computer. She orders 3 of the 5 x 7 prints for $0.89 each, 12 of the 4 x 6 prints for $0.15 each and 1 of the 8 x 10 prints for $2.99. She also orders a photo album for $8.69. Vera pays taxes that are 7% of the total purchase price. Vera selects standard shipping and the company bills her credit card $20.78 for the total of the online purchase. Determine if Vera has been billed correctly for her purchase. a. Vera has been billed correctly. b. Vera has not been charged enough for her purchase. c. Vera has been over charged by $1.13 for her purchase. d. Vera has been over charged by $3.50 for her purchase.

D

Wendy is calculating her tax deductions. She finds that she can deduct $5,522 from medical expenses, $7,240 from charitable donations, and $2,126 from property taxes. What is Wendy's total deduction? a. $5,700 b. $15,104 c. $18,284 d. $14,888

D

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.

D

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

D

Which of the following employees has the greatest total employee compensation? a.Employee A: total job benefits $49,200 and total job expenses $300 b.Employee B: total job benefits $49,500 and total job expenses $500 c.Employee C: total job benefits $ 49,800 and total job expenses $700 d.Employee D: total job benefits $50,100 and total job expenses $900

D

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

D

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

D

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

D

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

D

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

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

An essential expense (fixed or variable) is one that cannot be reduced in order to save more money, whereas a non-essential expense is one that should be eliminated and directed to savings.

F

The only expenses that can be reduced in order to produce more savings are "Non-essential Expenses" and "Essential (Variable)" expenses.

F

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

F

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

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

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

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

What is the standard deduction used for? a. The standard deduction is the minimum size a deduction can be to be counted. b. The standard deduction is claimed automatically, before other deductions are calculated. c. The standard deduction is the minimum deduction that anyone may claim. d. The standard deduction is the maximum allowable deduction.

NOT ; B

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:

NOT ; C

Explain why you might not want to have passive income as your only source of income.

Passive income relies on what others do and you don't really have control over the amount of money that you make. The income you get from it can be very good or bad without you doing anything different. For example, if you are an author and people hate your book, you may not have a very good income from it. On the other hand, if they love it, you might make a lot of money.

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

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

You want to buy a new pair of Kickin' sneakers and you see the following ads: Which store would you go to in order to get the best deal on your sneakers? Explain your reasoning.

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

A financial transaction that is added to a ledger balance is called a credit.

T

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

T

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

T

Bonnie claims single with 2 federal withholding allowances, and contributes state tax of 20% of her federal tax. Below is a copy of Bonnie's biweekly statement of earnings. Bonnie knows that her gross earnings and federal tax are correct, but she thinks that her net pay is not correct. Using the fact that Social Security is 6.2% and Medicare is 1.45% of gross pay, explain why the given net pay is not correct. Determine how the error can be corrected, and what the net pay should be.

The amount of Medicare tax has been calculated incorrectly. The Medicare tax should be $11.02, not $110.20. The actual net pay should be $641.86.

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

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

Describe how total job benefits and total employee compensation differ.

Total employee compensation is the result of deducting total job expenses from total job benefits.

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

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

Alberto is making a budget. He owes a cell phone bill of $60 per month for 23 more months, plus the fees for any extra usage such as text messaging or extra minutes. Which of the following is the correct category for this expense? a. Essential (flexible) expense b. Emergency fund c. Essential (fixed) expense d. Non-essential expense

A

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

A

Bill wants to open a checking account to pay bills from and a savings account to cover overdrafts and other emergencies. He wants online services, and a debit card. He analyzes the following statements of fees from State Bank and Common Bank: Based upon past experience, Bill expects to accidentally overdraft the account 2 times per year, unfortunately, due to unexpected charges and miscommunications. He expects no 2nd copies of statements, and to use network ATMs 4 times per month with State Bank (due to less in-network ATMs being available), or 2 times per month with Common Bank. He has $2500 to deposit to an emergency savings account for overdraft protection, and thinks that the balance will be enough to cover most all overdrafts in the future if automatic transfers are made when needed. Based on the tables of fees, which bank is expected to cost the least amount in fees per year? a. State Bank is expected to cost the least. b. Common Bank is expected to cost the least. c. State Bank and Common Bank would have the same costs for Bill. d. The fees cannot be estimated in advance.

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

Brian is calculating his tax deductions. He finds that he can deduct $1,225 as a result of money given to charity, $4,391 from interest paid on his mortgage, and $2,821 from what he paid in state and local taxes. What is Brian's total deduction? a. $8,437 b. $8,383 c. $6,414 d. $5,700

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? a. Budget A b. Budget B c. Budget C d. Budget D

A

Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following transactions: At the end of the week, how much money is in Danielle's account? a. $99.91 b. $27.11 c. $184.41 d. $142.16

A

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

A

Emma is ready to open a new checking account and is trying to decide between three banks using the chart below: 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

A

Henry and Walter open savings accounts at the same time. Henry invests $6,500 at 4.54% simple interest, and Walter invests $7,100 at 4.74% simple interest. After eight years, how much more interest has Walter earned than Henry? a. $331.52 b. $420.67 c. $631.52 d. $719.59

A

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

A

If the FDIC has a $59.5 billion insurance fund and must use 5.6% of it to cover several failed banks, approximately how much money is left in the fund? a. $56.17 billion b. $62.83 billion c. $66.16 billion d. $3,332 million

A

In 2007, the FDIC's insurance limit was $100,000 per person per bank. Approximately 59% of Mark's deposits were insured by the FDIC. Which of the following is a possible setup for Mark's deposits? a. A $50,000 savings account and $31,000 money market account at Bank G; a $71,000 money market account, $109,000 CD, and $39,000 checking account at Bank H; a $55,000 checking account, $84,000 savings account, and $38,000 CD at Bank I b. A $109,000 savings account, $124,000 checking account, and $36,000 money market account at Bank G; a $52,000 CD and $86,000 money market account at Bank H; a $79,000 checking account, $42,000 savings account, and $88,000 CD at Bank I c. A $107,000 money market account and $150,000 savings account at Bank G; a $22,000 checking account, $31,000 savings account, and $40,000 CD at Bank H; a $70,000 CD, $47,000 money market account, and $59,000 savings account at Bank I d. A $28,000 checking account and $30,000 CD at Bank G; a $77,000 savings account, $60,000 money market account, and $28,000 CD at Bank H; a $64,000 checking account, $92,000 CD, and $112,000 money market account at Bank I

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

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.

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. 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

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

A

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

A

Marco is reconstructing his expenses for the past two weeks. Here are the records of his expenses: Marco's bank statement says that he has an ending balance of $81. What is Marco's starting balance? a. $255 b. $93 c. $174 d. $210

A

One possible solution to a diminishing Social Security payroll is to increase the Social Security tax by 1.89%. How would such an increase effect the tax on an annual salary of $54,000? a. Annual tax would increase by $1,020.60. b. Annual tax would increase by $2,327.40. c. Annual tax would increase by $3,348.00. d. Annual tax would increase by $4,368.60.

A

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

A

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.

A

Say that you pay property taxes of $2458.20 every year. If your state has a property tax rate of 0.082, what is the assessed value of your property? a. $29,978 b. $20,157 c. $25,517 d. $21,946

A

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

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

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

A

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

A

Which of the following statements accurately describes the result of an increasing worker-per-beneficiary ratio in the Social Security system? a. More taxed workers than beneficiaries means that the system is collecting more money for the money being drawn out. This leaves money in the system and secures benefits for future beneficiaries. b. More taxed workers than beneficiaries means more money is being drawn from the system for the money put in. This leaves a shortage of money in the system making benefits for future beneficiaries insecure. c. More taxed workers than beneficiaries means that the system is collecting more money for the money being drawn out. This leaves a shortage of money in the system making benefits for future beneficiaries insecure. d. More taxed workers than beneficiaries means more money is being drawn from the system for the money put in.This leaves money in the system and secures benefits for future beneficiaries.

A

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

A

You own a house and land with an assessed value of $55,580. Every year, you pay a total of $2,834.58 in property taxes. What is your local property tax rate? a. 0.051 b. 0.058 c. 0.019 d. 0.066

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

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

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

Ben is looking at banks for checking and savings accounts. Some offer car loans and others do not. Ben may need a car loan sometime in the next few years. But Ben wonders if he should really ask what kinds of loans the bank makes, because he is getting a checking account, not a car loan. Which statement below gives the best reason for Ben to consider loan availability in choosing a checking account? a. The bank offers $10 to customers who get a pre-approval for a car loan. b. If he needs a car loan in the future, he will have a relationship of trust with the bank. c. The bank provides ATMs that are particularly useful for people who drive. d. Banks that provide car loans can usually charge lower fees.

B

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

B

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

B

Byron's income last year was $61,700. He made $48,000 at his plumbing job and had income from an apartment that he rented out. If Byron earned the same amount of rent each month for the entire year, approximately how much per month did he collect? a.$940 b.$1,140 c.$4,000 d.$5,140

B

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

B

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

B

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

B

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

B

If you invest $8,600 at a 3.95% simple annual interest rate, approximately how long will it take for you to have a total of $21,000? a. 25 years b. 36 years c. 45 years d. 60 years

B

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

B

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

B

In 2007, the FDIC's insurance limit was $100,000 per person per bank. At that time, if Kit had three separate $50,000 CDs at Bank R, a $60,000 checking account and a $140,000 money market account at Bank S, and an $80,000 savings account at Bank T, how much of Kit's money was FDIC insured? a. $230,000 b. $280,000 c. $300,000 d. $390,000

B

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

B

Isabelle has $84.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: On which day or days does Isabelle get charged an overdraft fee? I. Thursday II. Friday III. Saturday a. I only b. I and III c. II and III d. III only

B

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

B

Kathy makes $66,000 per year, and she pays a net federal income tax rate of 18.85%. How much should Kathy expect to pay in taxes every year? a. $78,530 b. $12,441 c. $10,481 d. $53,559

B

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

B

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

B

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

B

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

B

Maggie has $14,100 to invest, and wishes to gain $4,000 in interest over the next eight years. Approximately what is the minimum simple interest rate Maggie needs to reach her goal? a. 2.89% b. 3.55% c. 4.95% d. 5.18%

B

Mauro just won $1,000,000 from the lottery! Despite his excitement in winning a tremendous amount of money, his brother (who is an accountant) warns him not to spend it all at once and hands him this tax rate schedule for single taxpayers. Using this chart, a taxpayer who makes $58,000 annually (line 3) will have to pay $4,386.25 plus 25% of the differene of 58,000 and 31,850 or 4,386.25 + (0.25)(58,000-31,850) = $10,923.75. Before winning the lottery, Mauro's annual income was $34,500. Use the chart to determine Mauro's federal tax before winning the lottery and after winning the lottery. How much extra does he have to pay in federal taxes because he won the lottery? a. $5,048.75 b. $336,100.50 c. $341,149.25 d. $676,260.76

B

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

B

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

B

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

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 $30 $____ 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 $30. d. As long as you are saving money, you will not have a negative actual net income.

B

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

B

Sammy makes $2,362/month as a baseball coach. He is making a budget, and has created the following chart in order to divide his monthly paycheck into his various accounts: Sammy makes 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

B

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

B

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

B

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

B

Ted is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Ted's spending pattern: If the bank charges Ted an overdraft fee of $25 every time he overdraws his account, and Ted overdrew his account on Wednesday but not on Friday, which of the following is a possible amount of money that Ted could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees. a. $300 b. $280 c. $240 d. $200

B

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

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. 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

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

B

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

B

Vítor knows he must prepare and possibly prevent overdraft funds fees since they are charged automatically. Which statement below would be the least effective element of a plan Vitor could use to accurately estimate (or minimize) overdraft fees on the account? a. Always keep extra money in the account for such unexpected events. b. Use the debit card for a large number of small purchases and check the balance later. c. Always keep track of how much is being temporarily held d. Do not enter deposits into the register until they are verified as available.

B

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

B

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

B

Which 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.

B

Yolanda used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it does not. Yolanda wants to first look for a single transaction that could have caused this problem with reconciliation. What is the amount of the transaction that Yolanda should look for in order to find a solution to the problem? a. $17.52 b. $19.99 c. $20.01 d. $37.51

B

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

B

You have a restaurant bill of $61.45. If you are taxed 8 1/2% and decide to tip your server 15%, how much is your total? a. $75.65 b. $75.89 c. $76.32 d. $76.67

B

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

B

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

C

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

C

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

C

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. 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

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

C

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

C

An investment of $1,000 is earning interest at the rate of 3.8% compounded daily over 3 years. Approximately how much interest is earned on the investment? a. $892.26 b. $1120.75 c. $120.75 d. $38.73

C

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

C

An investment of $9,875 earns 4.8% interest compounded monthly over 12 years. Approximately how much interest is earned on the investment? a. $4,740 b. $7,458 c. $7,672 d. $17,567

C

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

C

Arthur has $19,500 to invest, and wishes to gain $8,000 in interest over eleven years. Approximately what is the minimum simple interest rate that Arthur needs to achieve his goal? a. 2.64% b. 3.04% c. 3.72% d. 4.51%

C

Below is a graph of the Murphys' annual expenses. If the Murphys' gross annual household income is $85,420, how much will they pay in federal taxes? a. $3,559.17 b. $8,542.00 c. $20,500.80 d. $29,897.00

C

Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income? a. $50,193 b. $41,843 c. $48,403 d. $52,793

C

Bill has $270.61 in his account before making any transactions. Over the course of a week, Bill makes the following transactions: At the end of the week, how much money is in Bill's account? a. $518.10 b. $156.70 c. $427.31 d. $608.89

C

Calculate the income needed based on the following budgeted expenses a. The income would need to be at least $925. 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 $1050.

C

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

C

Chris is calculating his deductions for his tax return. He is filing singly. He can claim $1,813 from property taxes, $1,513 from medical expenses, and $761 from state income tax. The standard deduction for a single filer is $5,700. How does the standard deduction compare to Chris's deductions? a. Chris's deductions are $1,437 better than the standard deduction. b. Chris's deductions are $4,087 better than the standard deduction. c. The standard deduction is $1,613 better than Chris's deductions. d. The standard deduction is $664 better than Chris's deductions.

C

Craig is single and lives alone. He earns a respectable salary, but the bulk of his income comes from his property holdings and stock market investments. Craig is well versed in tax law and has many deductions to claim, hoping to pay the smallest amount possible. Recommend the appropriate 1040 form for Craig. a. 1040-EZ b. 1040-Plus c. 1040 d. 1040-A

C

Dominic is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Dominic's spending pattern: If the bank charges Dominic an overdraft fee of $25 every time he overdraws his account, and Dominic overdrew his account on Thursday but not on Saturday, which of the following is a possible amount of money that Dominic could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees. a. $500 b. $480 c. $435 d. $400

C

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

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

Given the following information, choose the brand that is the better buy. Brand A: $2.16 for 18 ounces Brand B: $1.50 for 12 ounces Brand C: $2.26 for 20 ounces Brand D: $1.95 for 16 ounces a. Brand A b. Brand B c. Brand C d. Brand D

C

Glenda makes an online purchase of 4 picture frames for $12.95 each and 4 mats for $5.89 each. The site says that taxes paid by the customer are 6.5% of the total purchase price. Shipping charges are based on the following table: Glenda selects express shipping for her purchase and the company bills her credit card $91.86 for the total of the online purchase. Determine if Glenda has been billed correctly for her purchase. a. Glenda has been billed correctly. b. Glenda has not been charged enough for her purchase. c. Glenda has been over charged by $3.40 for her purchase. d. Glenda has been over charged by $3.80 for her purchase.

C

If the FDIC charges Bank D 6.1 cents per 100 dollars insured, how much must Bank D pay to insure $7.3 million in deposits? a. $4,4530,000 b. $445,300 c. $4,453 d. $445.30

C

If your state has a property tax rate of 0.056, and you pay $3,164.45 in property taxes every year, what is the assessed value of your property? a. $177,209 b. $21,265 c. $56,508 d. $48,684

C

In what way is a debit card similar to a check? a. You must always provide a signature to use either. b. Both always take a few days to clear, so there is some float time until the payment goes through. c. Both pull money directly from a checking or savings account. d. Both charge interest on the purchases you make with them.

C

Katie keeps a record of her transactions in a notebook. Looking over her records for the past two weeks, Katie finds that her bank statement does not match her notebook, and she actually has more money than she thought she did. These are the relevant entries in Katie's notebook: However, Katie's bank statement says that her ending balance is $707.10. Which of the following is a possible explanation for the discrepancy? a. Katie's neighbor paid for half of the fence repair, which Katie forgot to record. b. Katie transposed the digits in the cost of the dry cleaning, which actually cost $23.38. c. Katie's new chair was on sale for 15% off, making it cost $137.32, but Katie wrote down the before-sale price. d. Katie's tax refund came in two equal-sized checks, but Katie only recorded one of them.

C

Ken, a single taxpayer, has a gross income of $79,685. He claims one exemption and can take a deduction of $1,257 for medical expenses, a deduction of $2,181 for interest on his mortgage, an adjustment of $800 for alimony, a deduction of $1,419 for property taxes, an adjustment of $1,722 for business expenses, and an adjustment of $2,511 for contributions to his retirement fund. The standard deduction for a single filer is $5,700, and exemptions are worth $3,650 apiece. Using the table below, how much does Ken owe in income tax? a. $12,663 b. $12,825 c. $12,675 d. $12,838

C

Knowing that a 6.2% Social Security tax is applied to a maximum wage of $106,800, the maximum amount of Social Security tax that could ever be charged in a single year is: a. $213.60 b. $6,408.00 c. $6,621.60 d. $17,225.81

C

Leigh is the head of a household and earned $43,763 in taxable income this year. Over the course of the year, her employer withheld a total of $6322 for income tax. Based on the table below, what can Leigh expect when her taxes are due? a. Leigh will owe the IRS $379. b. Leigh will owe the IRS $966. c. Leigh will receive a refund of $316. d. Leigh will receive a refund of $558.

C

Looking at her paycheck, Rhonda notices that $30.56 was withheld from her last paycheck for state income stax while $122.25 was withheld for federal income tax. She knows that she indicated on her employment paperwork to set her state withholding at 21% of the federal withholding. What should Rhonda be thinking? a. The state withholding is correct, the correct amount is being withheld. b. The state withholding is too low, too little is being withheld. c. The state withholding is too high, too much is being withheld. d. She should not have any money withheld by the state since she is having federal taxes withheld.

C

Macky wants to open a checking account. He is examining different banks and banking accounts. Then he will choose a bank account for his needs. Which of the following statements should not be one of Macky's reasons for choosing a bank? a. Being more informed leads to being better prepared to make financial decisions. b. Banks could have charges that Macky does not know about until reading carefully. c. The first bank Macky considered offered a chance to win a prize upon opening an account. d. He will become more aware of how well banks meet his particular needs.

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 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

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

C

Michael is making a deposit with a check and wants cash back. His deposit slip has his name, his account number, the date, the amount of the check, the amount of cash that he wants, his signature, and what else? a. his date of birth b. his social security number c. the net deposit amount d. the balance of money in the account

C

Mike has an adjusted gross income of $85,643. He claims two exemptions and can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. If the standard deduction is $5,700 and exemptions are each worth $3,650, what is Mike's total taxable income? a. $72,643 b. $75,479 c. $71,829 d. $66,129

C

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

C

Say you are filing as a single taxpayer. You have a gross income of $61,026 and claim two exemptions. You can make a deduction of $2,871 for interest on your mortgage, a deduction of $2,376 for property tax, an adjustment of $3,206 for business losses, an adjustment of $2,575 for contributions to your retirement plan, a deduction of $2,682 for medical expenses, and an adjustment of $2,440 for business expenses. If exemptions are each worth $3,650 and the standard deduction is $5,700, what is your total taxable income? a. $39,805 b. $35,526 c. $37,576 d. $43,276

C

The actual income for this month has been reduced by $200. How can this budget be modified so there will be a positive actual net income? 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.

C

The total amount of deductions from an employee's gross pay is $97.45. If the gross pay is $423.70, what percent of their gross pay is being withheld? a.21% b.22% c.23% d.24%

C

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

C

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

C

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

C

Tyrell is gearing up for the football season and decides to purchase some items online. He has a promotional code for a one time $10 off any purchase of $50 or more. Tyrell orders 2 new jerseys at $32.89 each and a hat for $23.99. Tyrell pays 7% sales tax on his purchase, but pays no shipping charges. What is the total of Tyrell's online purchase? a. $50.16 b. $79.77 c. $85.35 d. $96.05

C

Use the following federal tax table for biweekly gross earnings of a single person to help answer the question below. 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

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

C

Which of the following companies offers the greatest total employment compensation? a.Company A b.Company B c.Company C d.Company D

C

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

C

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

C

You earn $1,166 gross taxable income every week, and have claimed no exemptions. Assuming that you have no other sources of income, what is the amount of income tax withheld each week? a. $323 b. $337 c. $340 d. $344

C

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

C

You have $6,500 to deposit. If you deposit the money in a savings account at your local bank, you will earn 1.45% annual interest and will be able to make ATM withdrawals at your bank's ATMs. If you deposit the money in an online savings account, you will earn 2.25% interest, but you will be charged $4 every time you make an ATM withdrawal. Assuming that your ATM withdrawals do not reduce the amount of interest you earn, how many ATM withdrawals must you make in a year for the local savings account to be a better deal than the online savings account? a. 5 b. 12 c. 14 d. 10

C

You have a gross income of $117,151 and are filing your tax return singly. You claim one exemption and can take a deduction of $2,713 for interest on your mortgage, an adjustment of $2,791 for business losses, an adjustment of $1,346 for alimony, a deduction of $2,086 for property taxes, a deduction of $2,376 for contributions to charity, and an adjustment of $1,091 for contributions to your retirement fund. The standard deduction for a single filer is $5,700, and exemptions are each worth $3,650. What is the difference between your adjusted gross income and your taxable income? a. $16,053 b. $9,350 c. $10,825 d. $14,475

C

You have a home with a market value of $144,700, which has an assessment value of 72% of that amount. Your city has a property tax rate of 0.039. You know that 65% of your property tax dollars go to public schools. To the nearest dollar, how much of your taxes went to funding schools? a. $4,063 b. $3,668 c. $2,641 d. $6,772

C

You have decided both to open a savings account and to purchase a vehicle. You would like a savings account with the highest interest rate and a vehicle loan with a low interest rate. You currently have a checking account at Bank A. From the banks listed below, determine with which bank you should open a savings account and at which bank should you apply for your vehicle loan. a. Bank A for the car loan and Bank B for the savings account b. Bank C for the car loan and Bank C for the savings account c. Bank B for the car loan and Bank A for the savings account d. Bank B for the car loan and Bank B for the savings account

C

Given the following prices, explain why Brand B is the better buy. (Hint: 16 ounces = 1 pound and 1 pound = 453.59 grams) Brand A: 54 ounces for $4.89 Brand B: 2 3/4 pounds for $3.91 Brand C: 910 grams for $3.10

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

0.05% of all tax returns filed electronically contain errors, but 20% of all tax returns filed manually contain errors. If 3.3 million tax returns are filed each way, how many more manually filed returns containing errors will there be than electronically filed returns containing errors? a. 330,825 b. 643,500 c. 321,750 d. 658,350

D

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

D

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

D

A statement of an employee's biweekly earnings is given below. What is the employee's gross pay? a.$703.86 b.$714.40 c.$716.26 d.$726.80

D

Abby lives in a state in which the state income tax rate is equal to 5.38% of federal taxable income. Abby's federal income tax is equal to 19.6% of her federal taxable income. If Abby owes $8,880.17 in federal income tax, how much does she owe in state income tax? a. $477.75 b. $1,740.51 c. $3,235.15 d. $2,437.52

D

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

D

Agnes pays state income tax equal to 3.75% of her federal taxable income. She pays federal income tax equal to 28.4% of her federal taxable income. This year, she paid $15,449.60 in federal income tax. How much did Agnes pay in state income tax? a. $573.36 b. $4,387.69 c. $1,170.04 d. $2,040.00

D

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

D

Assume that you pay $2,849.84 in state property taxes every year. If your property has an assessed value of $41,302, what is your state's property tax rate? a. 0.077 b. 0.032 c. 0.014 d. 0.069

D

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

D

Bob's bank charges him a $3.15 service fee every time he uses an out-of-network ATM. If Bob uses an out-of-network ATM an average of three times every two weeks, how much will he pay in service fees over the course of a year? a. $327.60 b. $109.20 c. $491.40 d. $245.70

D

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $125,000. a. Social Security tax: $77,500.00, Medicare tax: $18,125.00 b. Social Security tax: $7,750.00, Medicare tax: $1,812.50 c. Social Security tax: $66,216.00, Medicare tax: $18,125.00 d. Social Security tax: $6,621.60, Medicare tax: $1,812.50

D

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $235,430. a. Social Security tax: $1,459.67, Medicare tax: $341.37 b. Social Security tax: $14,596.66, Medicare tax: $3,413.70 c. Social Security tax: $662.16, Medicare tax: $341.37 d. Social Security tax: $6,621.60, Medicare tax: $3,413.70

D

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

D

Cassandra is trying to think of a good way to keep her financial records. She makes a lot of purchases, using cash, debit cards, and credit cards about equally. When she gets home every day, she tends to be very tired and doesn't like to do a lot of organized thinking. She tends to lose individual pieces of paper if she doesn't file them immediately. What might be a good method for Cassandra to use? a. Recording all of her daily expenditures in an organizational computer program. b. Keeping and collecting receipts for everything she buys. c. Tracking and collecting her bank and credit statements every month. d. Carrying a notebook and immediately recording all of her transactions in it.

D

Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters, and plants. If the cost of the fish is $84.79, the filters usually cost $60.45 but Colin finds them on sale for $44.75, and the cost of the plants is $18.66, determine how much of Colin's $488.85 savings will be used to set up his aquarium. a. $289.81 b. $163.90 c. $340.65 d. $148.20

D

Consider Michelle and Gladys, two neighbors who each earn the same salary. Gladys pays less in federal income taxes than Michelle does. Which of the following is a possible explanation for this? a. Michelle and Gladys are in different tax brackets. b. Gladys pays less in federal income taxes, but Michelle pays less in state income taxes. c. Gladys has more money in savings than Michelle. d. Gladys is taking advantage of more deductions and credits than Michelle.

D

Doug is filing singly. His net taxable income is $80,575. Every week, $304 is withheld from his earnings for income tax. Based on the table below, what can Doug expect when his taxes are due? a. Doug will receive a refund of $123. b. Doug will receive a refund of $2,977. c. Doug will owe an additional $1,125. d. Doug will owe an additional $731.

D

Faye's bank charges her a $2.25 service fee every time she uses an out-of-network ATM. If Faye uses an out-of-network ATM twice a week, how much money does she pay in service fees every year? a. $240.25 b. $225.00 c. $200.75 d. $234.00

D

Four different stores have the same watch on sale. The original price and discounts offered by each store are listed below. Rank the stores from the cheapest to most expensive sale price of the watch. Store A: price $129.99 and discount of 25% Store B: price $119.99 and discount of 15% Store C: price $115.99 and successive discounts of 5% and 5% Store D: price $109.99 and discount of 10% a. A, B, C. D b. A, B, D, C c. A, C, D, B d. A, D, B, C

D

Gareth is single and has a net taxable income of $54,446. Over the year, his employer has collected $9,100 in withheld payroll tax. Based on the table below, what should Gareth expect when his taxes are due? a. Gareth will receive a tax refund of $863. b. Gareth will receive a tax refund of $1,739. c. Gareth will owe the IRS $896. d. Gareth will owe the IRS $850.

D

Harry and Helen are married, filing jointly. Their combined taxable income is $65,922. Every week, a total of $187 is withheld from their pay. Based on the table below, what can Harry and Helen expect when their taxes are due? a. Harry and Helen will owe an additional $193. b. Harry and Helen will owe an additional $3,104. c. Harry and Helen will receive a refund of $724. d. Harry and Helen will receive a refund of $555.

D

If gross pay increases by $500, total employee benefits increase by $200 and total job expenses decrease by $300, then total employment compensation _____. a.increases by $400 b.increases by $700 c.increases by $800 d.increases by $1,000

D

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

D

If the NCUA charges 3.3 cents per 100 dollars insured and Credit Union M pays $5,995 in NCUA insurance premiums, approximately how much is in Credit Union M's insured deposits? a. $15.5 million b. $1.9 million c. $19.8 million d. $18.2 million

D

If the NCUA pays $1.36 billion to cover several failed credit unions, and doing so drains its reserve fund by 5.18%, approximately how much was in the fund to begin with? a. $70.1 billion b. $24.9 billion c. $27.7 billion d. $26.3 billion

D

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

D

Iris has an investment worth $8,813. She made her only deposit in it seven years ago. Given that the investment yields 3.7% simple interest annually, how big was the initial deposit? a. $1,806 b. $2,282 c. $4,095 d. $7,000

D

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

D

Jennifer is excited to be retiring after 35 years of service as a high school English teacher. Over the past 35 years, Jennifer's average annual salary was $26,443. How much can Jennifer expect to receive on a monthly basis from Social Security, assuming she will receive 42% of her average annually? a. $11,106.06 b. $1,110.61 c. $9,255.05 d. $925.51

D

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

D

Kim has worked in the tech industry for some time and would like to start consulting. In opening her new business, she will need equipment. She needs to purchase 3 laptops, 2 desktop computers, and a fax machine. Each laptop costs $546.78, each desktop computer costs $1,255.99, and the cost of the fax machine is $125.99. She currently has $3,500 in her savings account. Determine if Kim has enough in her savings account to cover the expenses of her new company, and if she doesn't have enough, determine the amount needed to cover the cost. a. Kim can cover the cost with $315.25 left over. b. Kim can cover the cost with $477.68 left over. c. After expenses, Kim will need an additional $1,478.52 to start her company. d. After expenses, Kim will need an additional $778.31 to start her company.

D

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

D

Luis has a biweekly gross pay of $770 and claims 2 federal withholding allowances. Luis has all of the following deductions from his gross pay: federal tax from the following table 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 Determine how Luis' net pay will be affected if he increases his federal withholding allowances from 2 to 3. a.His net pay will decrease by $19.00. b.His net pay will increase by $19.00. c.His net pay will decrease by $22.61. d.His net pay will increase by $22.61.

D

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

D

Many communities today are concerned with their local government's ability to appropriately manage the taxes it collects. If a government doesn't use all of the tax money it collects in taxes on existing expenditures, it may end up with extra money, called surplus. Which of the following could result in a county government budget in surplus? a. The government gives $100,000 to build and maintain a new sight-seeing attraction without adjusting existing expenditures. b. The government lowers sales and property taxes to satisfy taxpayers without adjusting expenditures. c. The government gives financial assistance to a neighboring county without adjusting taxes. d. The government reduces public transportation costs by switching to propane-run buses without adjusting taxes.

D

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

Maya works 16 hours per month at her part-time job earning $6.75 per hour. She earns some additional money house sitting for neighbors and friends. Maya charges $30 per day to house sit if there are no pets. If the house sitting includes pets, then she charges $40 per day. Last month, Maya spent 3 days house sitting with no pets and 5 days house sitting with pets. What is the total amount of earnings Maya had for the month? a. $270 b. $290 c. $378 d. $398

D

Ralph's annual income is about $32,000. Based on his expenses illustrated in the graph below, roughly how much should Ralph expect to pay in taxes this year? a. $1,920 b. $8,000 c. $9,280 d. $11,200

D

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

D

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.

D

The following federal tax table is for biweekly earnings of a single person. 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

The following federal tax table is for biweekly earnings of a single person. How will the federal tax affect a gross biweekly pay of $740 for a single person claiming 1 exemption? a.It increases gross pay by $62. b.It decreases gross pay by $62. c.It increases gross pay by $65. d.It decreases gross pay by $65.

D

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

D

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

D

What 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

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

You are examining your choices of banks to open a new savings account. Costs include monthly maintenance fees and statement copy fees. Income can come from ___________. a. Overdraft fees b. Debit cards c. Minimum monthly balance d. Interest on deposits

D

If your essential expenses plus your non-essential expenses are greater than your income, then your financial reserves are growing larger.

F

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

F

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

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

Sue's bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: 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.

NOT ; A

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

NOT ; B

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

NOT ; B

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.

NOT ; B

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

NOT ; B

Which statement or statements accurately describe a good way to avoid excessive service fees? I. Try to deposit money in large batches rather than in small amounts. II. Try to limit the number of withdrawals you make from out-of-network ATMs. III. Try to avoid using your debit card online. a. I and II b. II only c. III only d. I and III

NOT ; C

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

NOT ; D

Henry is up for retirement after 35 long years at his pharmacy. Before retiring, he would like to know how much he would receive each month from Social Security if he were to retire. During his 35 years, Henry averaged an annual salary of $45,620. Assuming he would recieve 42% of his annual average each year, how much can Henry expect to receive from Social Security on a monthly basis? a. $1,596.70 b. $1,916.04 c. $15,967.00 d. $19,160.40

NOT ; D or B

Analyze the following budget, with an income of $600, to determine how much can be spent on food for the month. 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.

NOT B

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

NOT C

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.

NOT 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

NOT D

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

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

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

The original price of the briefcase was $91.12.

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

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

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.

The total number of hours worked in the week is 46. The hourly pay would be 40(14) + 6(21) = $686 per week. The annual earnings are 52(686) = $35,672. The salary pay is more than the hourly pay based on the typical hours worked each week given in the table. Therefore, the employee would probably want to choose the salaried pay.

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

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