Personal Finance Final

The unit price of a 64-ounce carton of orange juice that costs $3.20 is

$0.10 per ounce

Jordan earns an annual salary of $45,000. If a lender uses 33% of monthly gross income as a guideline for the maximum PITI (principal, interest, taxes, and insurance), what is the maximum mortgage that Jordan can apply for?

$1,237.50

If a 10,000 investment earns a 4% annual return, what should its value be after one year?

$10,400

Acme Home Lending offers home equity loans up to 80% of the home value for its customers. If Sally Johnson has a home valued at $200,000 and a current mortgage of $50,000, how much can she borrow in a home equity loan from Acme?

$110,000

Crystal is looking for a new apartment. What are her total annual costs associated with renting? Monthly rent payment: $1,000 Annual renter's insurance: $250 Annual interest lost on security deposit: $20 Value of apartment: $150,000

$12,270

If Vince charged $200 on his credit card with 18% APR and he paid his balance in full within the grace period, how much was he required to pay?

$200.00

Given the information here, what should Jason's adjusted checkbook balance be? Bank balance: $300 Outstanding Checks: $129 Deposit in Transit: $50 ATM Fees: $26 Interest Earned: $5 Checkbook Balance $242

$221

Shane borrowed $255. He paid $20 interest and a service charge of $3.00. What is his finance charge?

$23.00

Rebecca Wilson budgeted $1,200 for housing and utilities in July. She actually spent $1,160. What is her budget variance?

$40 surplus

A family with $10,000 in assets and $60,000 of liabilities would have a net worth of

$40,000

Evan had three accounts as listed below. In 2014, how much was his total insurance coverage by FDIC? Bank A:$150,000 Bank B:$50,000 Bank C:$350,000

$450,000

Brenda lost her debit card. When she realized it was gone, her account had $173 in unauthorized charges. She notified her financial institution within two days. How much is she potentially liable for?

$50

Using the following table, calculate the taxes for an individual with taxable income of $45,000.

$7,375

Janet is completing her federal income taxes for the year and has identified the amounts listed here. How much can she rightfully deduct? • AGI: $42,000 • Medical and dental expenses: $1,100 • State income taxes: $1,000 • Mortgage interest: $7,000 • Charitable contributions: $1,250

$9,250

Hannah has liabilities totaling $30,000 (excluding her mortgage of $100,000). Her net worth is $45,000. What is her debt-to-equity ratio?

.67

If inflation is expected to be 8 percent, how long will it take for prices to double?

9 years

Susan Smith has a goal of "saving $25 per month for a TV." Consider the SMART approach, Susan's goal lacks

A time frame

Which of the following can result from failure to repay a loan?

All of these answers may be a result to repay a loan

Donald wanted to buy a house in the country, so he sought advice from his cousin Evan. Evan explained the advantages and disadvantages of home ownership; however, he had some information incorrect. Which of the following is incorrect?

An advantage is that the down payment required is less than the security deposit for a rental

Will wants to open an account with $500 that will allow him easy access to his funds (by checks, ATMs, or debit card usage) from many locations. He also wants to earn at least a low interest rate and have federal deposit insurance. What kind of account should he open?

An interest-earn checking account

Which of the following ratios shows the relationship between debt and net worth?

Debt Ratio

Paul bought some bad gasoline that damaged the gas tank of his vehicle.

He should provide the gas station with documentation of his purchase and all repair cost

Nancy is married to Jerry and needs to complete her tax form. They both earn about the same amount of money each year. What filing status would be best for them?

Married, filing a joint return

A worker's primary goal should be to

Pay his or her fair share of taxes while taking advantage of appropriate tax benefits

The document that would be most useful to plan spending and saving to achieve financial goals is the

Budget

Louise got caught in a cash flow trap and desperately needed money quickly. Unfortunately, she didn't shop around and she went to a ________. As a result, her annual percentage rate was higher than 780%!

Payday loan company

Changes in personal, social, and economic factors may require you to

Review and revise your financial plan more frequently

All of the following are signs of financial trouble except

You pay your credit card bill in full each period

The major function of personal financial planning is to

achieve personal economic satisfaction

if you have a problem whose remedy will be $1,500-$3,000, the appropriate tool to use would be

small claims court