Financial Math E2020

Which of the following statements is true?

c. The lower your interest rate is, the lower your monthly payments are.

Marcia has two credit cards and would like to consolidate the two balances into one balance on the card with the lower interest rate. The table below shows the information about the two credit cards Marcia currently uses.

d. $227.40

Which method of calculating finance charge results in the lowest finance charge?

d. adjusted balance

The debt-to-income (DTI) ratio of a borrower is used to compare _____ to the borrower's gross monthly income.

d. monthly living expenses (rent or mortgage, property tax, mortgage insurance, minimum credit card payments, and monthly loan payments)

Which step is not part of the 5-point credit card debt elimination plan?

d. pay only the minimum amount on all credit cards

Housing expenses are commonly referred to as PITI. What does PITI stand for?

d. principal, interest, taxes, insurance

A warning sign that a credit counseling agency may not be legitimate is when they promise to

d. settle your debts without it hurting your credit rating

double time

double your pay

what is given to family members when you die

life insurance

what is it called when unions recommend political candidates that will benefit the union?

lobbying

A service charge is the sum of lender fees for taking out a loan.

service charge

overtime

time and 1/2

pros for commision

you can make an unlimited amount of money

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.

$148.20

Jackie's broker charges her a commission of $8 per ten shares of stock she buys or sells. If Jackie buys 77 shares of Alesia Insurance at $10.34 per share and 120 shares of Ergar Appliances at $8.11 per share, how much will Jackie spend in commission?

$157.60

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?

$245.70

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?

$3.24

If you sell 225 shares of Dryas Security at $5.12 per share and 340 shares of Cilla Shipping at $12.43 per share, how much money will you receive, to the nearest dollar?

$5,378

Today, you sold the 459 shares of Rayje Clothiers that you purchased yesterday. How much profit did you make?

$6,306.66

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

$618.12

What is the employee's gross pay? Net pay: $596.80 Deductions: $130

$726.80

Fed. with: $98.00 Soc. with: $52.88 Med care: $12.37 State with: $22.54 What is the employee's gross pay?

$852.96

An air-conditioning unit costs $544, and the full-replacement extended warranty costs $113. If the manufacturer sells 506,970 units with extended warranties and must replace 20% of them as a result, how much will the replacement costs be? (Note: Assume manufacturing costs and replacement costs are the same.)

- A .

In auto insurance, a lower deductible means the customer _____.

- A .

Sarah, age 29, makes $45,000 a year and wants to buy a 15-year term policy that would replace seven years of her salary. The annual premium rate (per $1000 of face value) for her age group is $1.46. What is Sarah's premium, to the nearest dollar?

- A .

Susan is paying $0.30 per $100 on her $483,000 home in homeowners insurance annually. If her annual homeowners insurance premium is divided into twelve equal monthly installments to be included on each of her monthly mortgage payments of $2128.00, what is her total monthly payment?

- A .

When shopping for life insurance, you should look for:

- A .

Which of the following health care programs will wait to pay their share of medical coverage until after treatment is provided?

- A .

An electric guitar costs $830, with a $225 full-replacement warranty. If the manufacturer sells 532,475 warranties and has to honor 12% of them, how much profit did the manufacturer gain from the warranties?

- B .

Renters insurance is different than homeowners insurance in that _____.

- B .

Sarah pays $48.00 each month to keep her house insured. If her house is valued at $223,050, about how much is Sarah paying per $100 in homeowners insurance annually?

- B .

The health benefits Tom receives from his employer cover 43% of the total monthly premium of $345.00. How much does Tom have to pay each month?

- B .

You will pay substantially less for life insurance if which of the following factors is true?

- B .

Zach is looking for a homeowners insurance policy for his new house. AAA Insurance company has offered him a plan that insures his home annually for $0.36 per $100 of value in the home. In order to make calculations easier, Thompson's Insurance lists their annual homeowners insurance premium a bit differently, at $3.63 per $1,000 of value in the home.

- B .

DeShawn is 38 years old and is married with 3 children, ages 2, 4, and 6. He makes $45,000 a year and is planning to retire when he turns 60. From the following three options, DeShawn decides to buy the $900,000 20 year term policy. Given DeShawn's scenario, assess whether DeShawn made a wise decision.

- C .

Tara and Levi are trying to decide between homeowners insurance policies offered by two different agencies.

- C .

Andrew is insured by Leroux Health Insurance under Plan A. The plan includes a $248.00 monthly premium with a $5,500.00 annual deductible (not including co-pays).

- D .

Cesar's annual homeowners insurance premium is $972.80. If his home is valued at $253,000, roughly how much is Cesar paying for homeowners insurance?

- D .

Liam has purchased a fee-for-service health insurance plan from Leroux Health Insurance. Plan A includes a $248.00 monthly premium and an annual deductible of $5,500.00 (not including co-pays).

- D .

Most U.S. workers and their families receive their health care plan through their employer because _____?

- D .

Your children are 3 and 5 years old now, and you want an inexpensive policy that covers your family at least until the youngest is 22. Based on the given information, what is the best policy to buy?

- D .

NYSE (The New York Stock Exchange)

- Oldest and largest of the organized stock exchanges in the USA - Based on total market capitalization of its listed securities.

According to the chart below, what percentage of Ralph's expenses are items other than taxes? a. 65% b. 71% c. 75% d. 94%

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

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

Determine the amount needed such that when it comes time for retirement, an individual can make monthly withdraws in the amount of $2,154 for 30 years from an account paying 5.1% compounded monthly. Round your answer to the nearest cent. a. $396,721.78 b. $398,407.85 c. $775,440 d. $1,833,962.40

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

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

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

Pat and his friend rent an apartment together. Their total cost to move in included first months rent, last months rent and a security deposit of $600. If Pat paid a total of $1,050 to move in, how much is his share of the rent each month? a. $375 b. $450 c. $525 d. $750

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

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 depreciation component of a lease payment is _____.

A

The table below is comparing level of education achieved to the rate of unemployment and the median weekly earnings in 2008. Based on the information provided, the unemployment rate decreases the most when moving between which two consecutive educational levels?

A

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

Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with a monthly income of $3,200. a. $256 b. $512 c. $640 d. $896

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

Sherita, age 37, wants to pay no more than $750 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $3.96, what is the largest 15-year term policy she can buy without spending more than $750 annually?

A. $189,000

List 3 things that you should consider when choosing a career.

Amount of education, salary, personal interests

Stockbrokers

An agent who specialized in the buying and selling of stock.

Deductions

Any item or expense subtracted from gross income is defined as a deduction.

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

Below is a graph of the Murphys' annual expenses. How much will the Murphys' pay in state/local taxes if their gross annual household income is $85,420? a. $3,559.17 b. $8542.00 c. $20,500.80 d. $29,897.00

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

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

In auto insurance, a higher deductible means the customer _____. a. has a higher monthly bill, but pays less out of pocket in the event of an accident. b. has a lower monthly bill, but pays more out of pocket in the event of an accident. c. has a higher monthly bill and pays more out of pocket in the event of an accident. d. has a lower monthly bill and pays less out of pocket in the event of an accident.

B

Karina bought a townhouse for $199,900. She has a 30 year mortgage with a fixed rate of 5.5%. Karina's monthly payments are $998.08. What percent of the purchase price was Karina's down payment? a. 7% b. 12% c. 15% d. 18%

B

Limited mobility may be a disadvantage of buying because the home is _____. a. difficult to get around in b. difficult to sell c. expensive to repair d. far away from work

B

Liz owns stock in Nar Heating/Cooling and Cilla Shipping. She owns 120 more shares of Cilla Shipping than she does of Nar Heating/Cooling. Nar Heating/Cooling pays a yearly dividend of $5.78 per share, and Cilla Shipping pays a yearly dividend of $4.15 per share. If Liz receives $1630.02 in dividends annually, how many shares of Nar Heating/Cooling does she own? a. 196 shares b. 114 shares c. 348 shares d. 282 shares

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

Muriel has kept track of her income and expenses for the week in the spreadsheet below. How much was Muriel's restaurant bill?

B

Prince Waste Collection pays a yearly dividend of $14.94 per share of stock. If Prince Waste Collection pays Kathy $46,926.54 in dividends every year, how many shares does Kathy own? a. 2,978 b. 3,141 c. 3,443 d. 2,934

B

Sally's employer pays for 38% of her annual health insurance premium of $4,350.00. Sally pays the remaining balance by having it deducted in equal amounts from her 26 paychecks throughout the calendar year. How much will Sally have deducted from each paycheck? a. $63.58 b. $103.73 c. $137.75 d. $207.46

B

The extended warranty on a ceiling fan is 18% of the purchase price. If the price of the fan is $140, how much is the warranty? a. $7.78 b. $25.20 c. $18.72 d. $12.86

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 of the following would least likely be used to determine your eligibility for a home loan? a. credit history report b. current utility bills c. recurring debt total d. savings account balance

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

Your broker charges you 2.5% commission on the market value of bonds you buy or sell. If you wish to buy a par value $1,000 bond from Cuyahoga County with a market rate of 86.681, approximately how much will you owe your broker? a. $25.00 b. $21.67 c. $89.18 d. $27.17

B

Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10 year policy?

B. $1,202

Maria, age 28, wants to pay no more than $300 a year in life insurance. What is the face value of the largest 20-year term policy she can buy without spending more than $300 annually?

B. $158,000

After getting married, Joe, 32, and Melinda, 29, decide to take out life insurance policies. Joe would like a 15-year term policy and Melinda would like a 20-year term policy. They each want a $300,000 policy. How much can Joe and Melinda expect to pay in premiums the first year?

B. $2,484

In what way is a debit card similar to a check?

Both pull money directly from a checking or savings account.

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

Brand A is the better buy.

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

Brand C

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

C

Aria paid $75,000 for her house. Its property value increased by 2.2% per year. When Aria sold her house after eleven years, how much was it worth, to the nearest hundred dollars? a. $133,700 b. $95,400 c. $95,300 d. $93,100

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

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

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

How much did Kay deposit in cash and coins? a. $404.57 b. $213.51 c. $93.44 d. $284.50

C

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

C

If you invest $3,900 at a 7.83% simple annual interest rate, approximately how long will it take for you to have a total of $10,000? a. 12 years b. 15 years c. 20 years d. 30 years

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

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 order to go to college, Hank goes from working full-time making $28,000 per year to working part-time at half the salary for two years. The cost of his education will be $5,000. If Hank makes $33,000 per year after getting his degree, approximately how many years will it take him to recover his investment? a. 1 b. 5.6 c. 6.6 d. 12.2

C

In the table below, we are given two annuity plans, A and B, and the amount invested into each plan every month. Given this information, determine which of the two investments is an ordinary annuity, and the amount invested over a 12 month period. a. Investment A is an ordinary annuity with an annual contribution of $1,100 b. Investment A is an ordinary annuity with an annual contribution of $100 c. Investment B is an ordinary annuity with an annual contribution of $1,100 d. Investment B is an ordinary annuity with an annual contribution of $100

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

Osceola County bonds worth $1,000 are selling at 88.391. What is the market price of one such bond? a. $1,088.39 b. $1,000.00 c. $883.91 d. $88.39

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

Ronnie wants to lower his utility bills to save money on his monthly expenses. He discovers that if he replaces his water heater with a solar water heater his monthly utility bills can decrease around 50% to 85%. At the end of the year Ronnie wants to calculate the percentage his new solar water heater saved him in the utility bills compared to last year. Ronnie?s total utility expenses for this year are $862.40 and last year the utility expenses were $1935.67. What percentage did Ronnie save on his utlility bills by switching to a solar water heater? a. 44.5% b. 97.8% c. 55.4% d. 67.5%

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

Rudy has been paying an annual homeowners insurance premium of $1,106.30 ($0.37 per $100 of value) since he first purchased his house. For the past six months, Rudy has completed some major improvements to his house to improve its overall value. If Rudy successfully adds $50,000 to the value of his house, what will his new annual homeowners insurance premium be? a. $185.00 b. $315.00 c. $1,291.30 d. $1,351.14

C

Sammy is a full-time students who does not work. He is too old to stay on his parents health insurance and is looking for his own health care program. The two options he is considering are outlined in the tables below.

C

Sandra owns a bond issued by Animite Energy with a par value of $1,000. The bond pays 7.6% interest yearly and had a market rate of 93.411 when Sandra bought it. If the current market rate of Animite Energy bonds is 102.382, what is the current yield on Sandra's bond? a. 0.076 b. 0.074 c. 0.081 d. 0.089

C

Say you have a warranty on your laptop computer. Which of these situations is most likely to be covered by that warranty? a. The laptop is stolen. b. You short out the hard drive by installing a bigger power supply. c. The graphics system fails due to faulty wiring. d. The screen cracks when you drop the laptop.

C

The Hendersons have just bought a home that requires some monthly yard maintenance. They are trying to decide if they should hire a professional lawn care service to maintain the property or do it themselves. Below are the costs associated with both options: Professional Service Option Do-It-Yourself Option $75 for the first month $250 lawnmower $45 per month after initial visit $135 edger Includes mowing and edging the lawn, trimming the bushes, and raking the leaves. $69 hedge trimmer $25 rake How long would it take before the Hendersons would recover their costs if they chose to do it themselves over the professional service?

C

The chart below summarizes Ralph's annual expenses for the upcoming year. Based on the information in the graph, approximately what percent of his total budget will be for federal taxes? a. 6% b. 18% c. 30% d. 36%

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

Three friends decide to rent an apartment and split the cost evenly. They each paid $640 towards the total move in cost of first and last months rent and a security deposit. If rent is $650 per month, how much was the security deposit? a. $10 b. $207 c. $620 d. $1,270

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 is a financial risk of being a homeowner? a. The home may be difficult to sell. b. The home may need repairs. c. The home may decrease in value. d. The home may have taxes.

C

What is risk, as pertains to investing? a. The time period needed to find a buyer for an investment. b. The cost of purchasing an investment. c. The chance you take that your investments will lose their value. d. The opportunity cost of tying your money up in investments.

C

When shopping for life insurance, the best strategy is to: a. Follow your agent's recommendations. They are the experts and it is the agent's job to make sure you get the products that are right for you. b. Buy your coverage through your employer, if possible. c. Figure out how much you need, then comparison shop using the Web and other resources. d. Wait until you are older so that you can buy a cheaper, shorter term policy.

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 could result in higher living costs for the homeowner that the renter doesn't have? a. decreased property value b. down payment c. maintenance d. monthly payment

C

Without buying points, a monthly mortgage payment will be $958. Buying 1 point at closing would reduce the payment to $948.75. If each point costs $1000.00, rounded to the nearest year, how long would it take to break even by buying 1 point? a. 7 years b. 8 years c. 9 years d. 10 years

C

If Yessenia wants to buy a $165,000 whole life policy, and the annual premium rate (per $1000 of face value) for her age group is $15.46, how much is Yessenia's monthly premium?

C. $212.57

A pharmacist is trying to stock the pharmacy with cheaper alternatives for customers. She will stop carrying the more expensive items. In doing so, she is trying to determine which of the following forms is the most expensive. Tablet form comes in 50 mg tablets and cost $75.00 for a bottle of 100 tablets. Capsule form comes in 75 mg capsules and cost $63.75 for a bottle of 85 capsules Caplet form comes in 100 mg caplets and cost $70.00 for 40 caplets. Based on the given information, which form is the most expensive?

C. the caplet form is more expensive

Comparison shopping

Comparison shopping is the process of shopping for bargains by comparing the prices of competing brands or stores.

$3,250 is withdrawn at the end of every month from an account paying 4.1% compounded monthly. Determine the previous value of the account, given that withdrawals are made from the account for 30 years. Round to the nearest cent. a. $1,170,000.00 b. $2,304,150.99 c. $674,899.66 d. $672,601.61

D

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 $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

Because Bernard has some health issues, he must pay 15% more for life insurance. About how much more annually will a $115,000 10-year term insurance at age 35 cost Bernard than someone of the same age without health issues?

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

D

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

D

Chloe lives in an area where she runs the air conditioner during the 4 hottest months of the year. The air conditioner runs for 7 hours per day at a cost of 21 cents per hour. How much does she spend per year on utility bills for the air conditioner?(Assume there are 30 days in each month) a. $705.60 b. $588.00 c. $216.09 d. $176.40

D

Housing expenses are commonly referred to as PITI. What does PITI stand for? a. principal, income, taxes, investment b. payment, investment, terms, insurance c. payment, interest, terms, income d. principal, interest, taxes, insurance

D

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

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

In 2007, the FDIC's insurance limit was $100,000 per person per bank. Approximately 62% of Gil's deposits were insured by the FDIC. Which of the following was a possible setup for Gil's deposits? a. A $13,000 money market account at Bank T; a $31,000 CD, $44,000 savings account, and $16,000 checking account at Bank U; a $70,000 CD and $28,000 money market account at Bank V b. A $54,000 checking account and $84,000 savings account at Bank T; a $28,000 money market account, $27,000 savings account, and $20,000 CD at Bank U; a $130,000 CD at bank V c. A $60,000 money market account and $70,000 savings account at Bank T; a $40,000 checking account and $92,000 savings account at Bank U; a $45,000 CD and $75,000 checking acount at Bank V d. A $108,000 savings account and $46,000 CD at Bank T; a $36,000 money market account and $38,000 CD at Bank U; a $63,000 checking account, $80,000 savings account, and $70,000 money market account at Bank V

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

Jean told her stockbroker to purchase 300 shares of stock of Company ABC at $20 per share. The fee that the stockbroker charges for this service is called ____. a. Dividend b. Yield c. Net Proceeds d. Commission

D

Mr. and Mrs. Lorenzo want to buy a home valued at $213,500. If they have 18% of this amount saved for a down payment, how much have they saved? a. $384.30 b. $3,843.00 c. $38,043.00 d. $38,430.00

D

Mr. and Mrs. Yeager want to buy a home valued at $320,000. If they have 15% of this amount saved for a down payment, how much have they saved? (Queue AOT theme song) a. $480 b. $4,080 c. $4,800 d. $48,000

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

Robert makes $951 gross income per week and keeps $762 of it after tax withholding. How many allowances has Robert claimed?

D

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

D

Today, you sold the 459 shares of Rayje Clothiers that you purchased yesterday. How much profit did you make? a. $13,985.73 b. $11,520.90 c. $5,338.17 d. $6,306.66

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

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

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

What is the biggest difference in who controls the 401(k) and IRA retirement plans? a. IRA is intended for a stable retirement income, while a 401(k) is reserved for emergencies or luxuries. b. 401(k) is a good last minute investment for retirement, while IRAs require years of investing. c. IRAs allow one to save a lot more money towards retirement than a 401(k). d. A 401(k) is controlled and monitored by an employer, and an IRA is controlled by the investing individual.

D

Which of the following is not an advantage of renting? a. ease of mobility b. fewer responsibilities c. lower initial costs d. restricted lifestyle

D

Which of the following is not considered one of the four basic types of auto insurance? a. Collision b. Bodily Injury c. Property Damage d. Legal Responsibility

D

Which of the following is something that should not be a consideration when choosing a health care plan? a. annual premiums to be paid by the insured individual and family b. deductible or co-pay to be paid by the insured individual and family c. total coverage received by insured individual and family d. the coverage the insured individual and family already receive in auto insurance

D

Which of the following kinds of bonds earn interest? I. Corporate bonds II. Bonds selling at a discount III. Municipal bonds a. I and II b. II only c. I and III d. I, II, and III

D

Which of the following ratios is used to determine ones debt-to-income ratio? a. 20/28 b. 20/36 c. 28/30 d. 28/36

D

Which of the following retirement plans places a maximum amount that an individual can contribute to the fund in a given year at $5,000? a. 401(k) b. Tax-Deferred Annuity c. Pension d. IRA

D

All debit cards can pull money from a credit balance.

F

Stock index

Measure and reports the change in price of a stock

The following table shows a portion of a five-year amortization schedule. 2007-10-05-00-00_files/i0040000.jpg What percent of the payments made were due to interest for the months shown?

NOT a. 30.9%

If it is completely impossible to put a contract in writing, which of the following would be the best substitute?

NOT a. having a friend witness the verbal agreement

Ursula took out an unsubsidized Stafford loan to help pay for her first of her four years at college. The loan had a principal of $6,400, an interest rate of 6.9% compounded monthly. After college, Ursula started making monthly payments over a 10 year period on her loan. What percentage of the total cost of the loan is the finance charge?

NOT b. 27.91%

Which statement or statements accurately describe characteristics of subsidized Stafford loan? I. grace period during which payments are not due II. based on student need III. student is responsible for all interest for the lifetime of the loan.

NOT b. II only

Net pay

Net pay is the amount received by an employee after deductions.

What is a stock index?

Not A listing of all stocks available in a specific market.

Describe what is meant by the statement "Renting can restrict ones lifestyle."

Renters must live by the landlord's rules or guidelines. For example, a renter may not be allowed to paint, hang things on the wall, put up decorations or have pets.

Stock Exchange

Secondly group where stocks are bought and sold

Antonio has just graduated from four years of college. For the last two years, he took out a Stafford loan to pay for his tuition. Each loan had a duration of ten years and interest compounded monthly. Antonio will pay each of them back by making monthly payments, starting as he graduates. Antonio's loans are detailed in the table below. Year Loan Amount ($) Interest Rate (%) Subsidized? Junior 5,894 6.9 Y Senior 5,258 7.5 N Once all of his loans are paid off, what will Antonio's total lifetime cost be? Round all dollar values to the nearest cent.

a. $16,246.80

The following formula is used to calculate the monthly payment on a personal loan. 2007-10-03-00-00_files/i0020000.jpg In this formula, n represents the

a. number of periods over which interest is calculated on the loan

personal days

absences for personal reasons

An acquisition fee is an administration fee charged by the leasing company.

acquisition fee

Which of the following is a liability?

b) credit card balance

Jerry's loan had a principal of $22,000. He made quarterly payments of $640 for nine years until the loan was paid in full. How much did Jerry pay in interest?

b. $1,040

The following table shows a portion of a three-year amortization schedule. After two years, how much has been paid into interest?

b. $1,246.10

Stock in Trochel Office Supplies trades at $72.40 per share and pays a yearly dividend of $6.92 per share. If David owns stock in Trochel Office Supplies worth $6,443.60, how much does he get paid in yearly dividends? a. $678.16 b. $931.16 c. $615.88 d. $560.52

c

What does a negative net worth indicate?

c) Your liabilities exceed your assets.

Approximate the interest rate for a lease that comes with a money factor of 0.0027.

c. 6.5%

In order to approve a loan, lenders want to see a credit score of at least

c. 700

Irving spent the day shopping and made the following purchases: Item Cost ($) Novel 8.75 Shirt 21.66 Lunch 9.13 Potted plant 16.89

$151.49

Luce is single and making $763 biweekly. She claims no federal withholding allowances. If the state tax is 19% of the federal tax, how much in state tax does Luce contribute?

$16.34

Mary Liz claims single having no exemptions. Her state tax deduction is 18% of her federal tax contribution. Calculate the amount of state tax Mary Liz owes if her gross pay for two weeks is $800.

$16.56

Evelyn spent the day shopping and made the following purchases: Item Cost ($) Camera 66.31 Hat 13.44 Parking 8.00 Planner 9.78 When Evelyn was done, she checked her account balance and found she had a total of $208.16. How much money was in Evelyn's account to begin with?

$305.69

Billy's employer pays for 65% of his annual health insurance premium. Billy has the rest deducted in equal amounts from his paycheck. If Billy has $105.73 withheld from his paychecks twice each month, how much does his employer contribute towards his health insurance on an annual basis?

$4,712.54

Bill has $270.61 in his account before making any transactions. Over the course of a week, Bill makes the following transactions: Transaction Debit ($) Credit ($) Paycheck --- 535.67 Electric bill 112.53 --- Groceries 90.79 --- Savings bond --- 50.00 Car payment 225.65 --- At the end of the week, how much money is in Bill's account?

$427.31

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.

$432.97

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

$435

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 $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:

$5,136; approximately 24 months

Liam has purchased a fee-for-service health insurance plan from Leroux Health Insurance. Plan A includes a $248.00 monthly premium and an annual deductible of $5,500.00 (not including co-pays). Liam is a fairly healthy young man. He visits his primary care physician three times a year on scheduled visits. He sees a chiropractic specialist every week to help with lower back pain. He has no current prescriptions that need refilling regularly. Assuming Liam maintains his regular visits with his primary care physician and his chiropractor, and avoids any trips to the emergency room or urgent care, how much will Liam pay in health care related fees this year?

$6,216.00

Bob's employer covers 23% of his family's annual health insurance premium. The balance of the premium is deducted in equal amounts from Bob's paycheck 26 times over the calendar year. If $185.30 is withheld from each of Bob's paychecks, what is his family's annual health insurance premium?

$6,256.88

Javier's employer pays for 43% of his annual health insurance premium. Javier pays the remaining balance by having it deducted from his paychecks in equal amounts twice a month throughout the year. If $157.38 is deducted from each of Javier's paychecks, what is his total annual premium?

$6,626.53

Mr. Henderson's annual premium of $4,668 is covered entirely by his employer along with 25% of the $9,264 premium for his wife and kids. How much of the Henderson family's annual premium is being paid for by Mr. Henderson's employer?

$6,984

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.

$75.37

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.

$899.15

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

$94.32

You buy 45 shares of Evu Confectioners at $63.12 apiece. Unfortunately, the company falls on hard times and you end up selling the stock for $41.20 per share. How much money did you lose?

$986.40

Danielle has $127.02 in her account before making any transactions. Over the course of a week, Danielle makes the following transactions: Transaction Debit ($) Credit ($) Birthday check --- 75.00 Night out 66.14 --- Garage sale proceeds --- 121.58 Charitable donation 42.25 --- Doctor's appointment 115.30 --- At the end of the week, how much money is in Danielle's account?

$99.91

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.

$990.54

Because Aaron, age 32, is a smoker, he must pay more for life insurance. Given that Company A charges 20% more for smokers, Company B charges 18% more for smokers, Company C charge 25% more for smokers and Company D charges 15% more for smokers, Aaron decides to buy his $250,000 policy from Company B. Which of the following statements is true?

- A .

Ben just purchased a house in an older neighborhood. After talking to several neighbors across the street, he found that he is paying much more in homeowners insurance than other homeowners in the neighborhood.

- A .

Between permanent life insurance and term life insurance, which typically has the lower premium and why?

- A .

Eva is 29 years old and has 2 children, ages 3 and 5. She makes $48,500 a year. Eva decides to buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards. To renew the policy the insurance company charges an extra 40% to her premium rate. Given the options below, assess whether Eva made a wise decision.

- A .

Health insurance helps to protect you from financial loss by _____.

- A .

If Jesse wants to buy a $75,000 10-year term life insurance policy, and the annual premium rate (per $1000 of face value) for his age group is $2.34, how much is Jesse's annual premium?

- A .

In addition to general medical services, Holly would like to add dental and vision options to her health care plan. The monthly premium for her medical insurance is $345 of which her employer pays 65%. Her employer also offers to pay 50% of the monthly dental premium of $38 and 75% of the $23 monthly premium for the vision plan that is offered. If Holly opts for both the dental and vision options in addition to her regular health insurance, what will her total monthly premium be?

- A .

In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change?

- A .

In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below.

- A .

Rachel just purchased a homeowners insurance policy for her new home that costs $0.43 per $100. Her home is worth $387,500. What is Rachel's annual homeowners insurance premium?

- A .

Sally just purchased a beautiful home on a riverbank for what she thought was a very good deal. She later learned that her house was very susceptible to flood damage during the rainy season. Which of the following statements best describes the effect the location of Sally's new home will have on her homeowners insurance premium?

- A .

Tracy was involved in an accident in which the other driver suffered severe injuries. The police determined that the accident was Tracy's fault. Tracy is fully insured through her insurance company. Which of the following components of Tracy's insurance policy will cover the injuries of the other driver?

- A .

Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan?

- A .

A complete desktop computer costs $965. A replacement monitor costs $238, a replacement hard drive costs $260, a replacement outer case costs $145, labor to repair it costs $77, and shipping it to and from a repair center costs $41. A full warranty, which covers the entire cost of repairing the computer, is 35% of the purchase price. A limited warranty, which only covers internal parts and labor, costs 11% of the purchase price. If the computer tower is damaged, requiring a new hard drive, new case, labor, and shipping, which warranty will be the better deal, and by how much?

- B .

A new DVD player has a purchase price of $430. With the extended warranty, the total cost is $512. What percent of the purchase price is the price of the warranty?

- B .

A vacuum cleaner costs $68, and the full-replacement extended warranty costs $22. If the manufacturer sells 360,920 vacuum cleaners under warranty and must replace 15% of them to honor the warranties, how much will the replacement costs be?

- B .

After being involved in a car accident last month, Ralph's insurance company has increased his annual premium by $105.38. Approximately what change will Ralph see on his future monthly statements as a result of the change?

- B .

After getting married, Joe, 32, and Melinda, 29, decide to take out life insurance policies. Joe would like a 15-year term policy and Melinda would like a 20-year term policy. They each want a $300,000 policy. How much can Joe and Melinda expect to pay in premiums the first year?

- B .

Allie and Sarah decided that they want to purchase renters insurance for the apartment they share. They made a list of all of the items to be covered by the insurance policy, along with their estimated values. If the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. If the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items.

- B .

Gerald would like to add a dental and vision option to the health insurance plan he purchased through his employer. In addition to the 65% of Gerald's $345 monthly health insurance premium, his employer has offered to pay 50% of a $38 monthly dental premium and 75% of a $23 monthly vision premium. If Gerald adds both the dental and vision options to his insurance plan, how much will he pay each month towards health insurance?

- B .

Greg just purchased a house for $450,000. His annual homeowners insurance premium is $0.42 per $100 of value. If his annual premium is divided into equal monthly payments, what will Greg have to pay on a monthly basis to keep his home insured?

- B .

In many cases, lenders allow homeowners to included their homeowners insurance premium with their monthly mortgage payment. Tim's home is worth $279,500. If his homeowners insurance premium is $0.33 per $100, how much is added to his monthly mortgage payment for insurance?

- B .

Jim and Stephanie just got married and are thinking about changing their health care insurance plans to be more affordable. Currently, both Jim and Stephanie are insured through their own employers. Jim's employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries. Stephanie's employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary.

- B .

Maria, age 28, wants to pay no more than $300 a year in life insurance. What is the face value of the largest 20-year term policy she can buy without spending more than $300 annually?

- B .

Sally's employer pays for 38% of her annual health insurance premium of $4,350.00. Sally pays the remaining balance by having it deducted in equal amounts from her 26 paychecks throughout the calendar year. How much will Sally have deducted from each paycheck?

- B .

Say you are buying a bicycle. You do not plan to use the bicycle for more than a few years before buying a new one, but will rely on it in the meantime. You know that your bicicyles tend to need repairs periodically, but you tend to take good care of them overall. The bicycle is relatively cheap, so you do not want to invest too much money into it. What kind of warranty would be a good one to purchase and why?

- B .

Stephanie would like to lower her premium by increasing her deductible. If Stephanie wants to increase her deductible to $1000, what annual premium would result in an annual out-of-pocket expense that is about the same as her current plan?

- B .

The health care Jimmy's employer offers is a fee-for-service plan in which Jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. Jimmy and his family have several health related issues that demand $685.00 each month. If one of Jimmy's children were to become seriously injured at the end of the year, how much would the related health costs need to be in order for the insurance company to assume responsibility?

- B .

The two basic types of life insurance policies are:

- B .

What does it mean for a manufacturer's warranty and an extended warranty to overlap?

- B .

What is the basic difference between liability insurance and collision insurance?

- B .

A microwave costs $89, with a $17 full-replacement warranty. If the manufacturer sells 475,360 warranties and has to honor 7.5% of them, how much profit did the manufacturer make from the warranties?

- C .

A space heater costing $235 offers an extended warranty for 15% of the purchase price. If the local repair shop will fix a space heater for $12, how many times must the space heater need repairs for the warranty to be worth the cost?

- C .

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. Using the table, find the difference in total premium costs over 20 years for this policy at the two age levels.

- C .

As a part-time employee, Rachel does not qualify for any benefits from her current employer. Seeing a need for a health care program, Rachel went shopping for health insurance and is trying to decide between two options with a national health insurance provider. The benefits of each option are outlined in the tables below.

- C .

Bob's employer covers 23% of his family's annual health insurance premium. The balance of the premium is deducted in equal amounts from Bob's paycheck 26 times over the calendar year. If $185.30 is withheld from each of Bob's paychecks, what is his family's annual health insurance premium?

- C .

Cindy's apartment complex is offering renters insurance through their insurance company. The insurance company charges an annual premium of $565.00 which can be paid in equal payments throughout the year with her monthly rent. Cindy's monthly rent is currently $789.00. What will Cindy's new rent be if she includes the renters insurance?

- C .

Determine what Paul will have to pay on an annual bases for his $449,000 home if his insurance company is charging him $0.41 per $100 of value in his home.

- C .

If Yessenia wants to buy a $165,000 whole life policy, and the annual premium rate (per $1000 of face value) for her age group is $15.46, how much is Yessenia's monthly premium?

- C .

Jacob wants to buy a $500,000 15-year term life policy, and the annual premium rate (per $1000 of face value) for his age group is $6.78. If Jacob lives until the end of the term of his policy, how much will Jacob have paid in premiums overall?

- C .

Javier's employer pays for 43% of his annual health insurance premium. Javier pays the remaining balance by having it deducted from his paychecks in equal amounts twice a month throughout the year. If $157.38 is deducted from each of Javier's paychecks, what is his total annual premium?

- C .

Jennifer purchased a house in a brand new development in the outskirts of town. When her house was built, the nearest fire department was nearly 20 miles away. As her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. What effect will the new fire station have on her homeowners insurance premium?

- C .

Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?

- C .

Of the following, which factor or factors would make it more likely that buying an extended warranty is a good idea? I. The extended warranty overlaps with the manufacturer's warranty. II. The product has a high probability of needing repair in the next few years. III. The product is a major purchase that you are unlikely to soon replace.

- C .

Patrick and Susie just welcomed a set of twins to their family and have to decide how to purchase health insurance for the babies. Patrick's employer pays for 100% of his monthly health insurance premium of $378, but will not pay for any of the $280 for each additional beneficiary. Susie's employer, who pays 63% of her $403 monthly premium, offers to pay 32% of the $310 monthly premium for each additional beneficiary. Which would be the most economical way to purchase health insurance for the family?

- C .

Rudy has been paying an annual homeowners insurance premium of $1,106.30 ($0.37 per $100 of value) since he first purchased his house. For the past six months, Rudy has completed some major improvements to his house to improve its overall value. If Rudy successfully adds $50,000 to the value of his house, what will his new annual homeowners insurance premium be?

- C .

Sam knows that his annual homeowners insurance premium is $0.27 per $100 of value, which usually works out to be $683.10 annually. But Sam is confused by a letter from his insurance company telling him that an increase in the value of his home has led to an increase in his annual homeowners insurance premium. He is now being charged an annual premium of $720.90. Based on the increase in his annual homeowners insurance premium, what was the increase in his home's value? (Note: The cost is still $0.27 per $100, even though the annual premium went up.)

- C .

Sammy is a full-time students who does not work. He is too old to stay on his parents health insurance and is looking for his own health care program. The two options he is considering are outlined in the tables below.

- C .

Say you have a warranty on your laptop computer. Which of these situations is most likely to be covered by that warranty?

- C .

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie's limits the most without increasing her monthly premium by more than $5.00?

- C .

The extended warranty on a mini-fridge costs $41.25. If the warranty is 12.5% of the normal price, what is the cost of the mini-fridge itself, to the nearest dollar?

- C .

Tina was involved in an accident in which she rear-ended another driver stopped at a stoplight. Tina is fully insured through her insurance company. Which of the following components of her insurance policy will cover the damages caused to Tina's car in the accident?

- C .

When shopping for life insurance, the best strategy is to:

- C .

Which of the following is a cost homeowners insurance does not protect?

- C .

Which of the following is not a factor that affects your auto insurance premiums?

- C .

Which of the following is something that will not affect your homeowners insurance premium?

- C .

Which of the following statements best describes the difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)?

- C .

You're 35 years old now, and you want to purchase life insurance which will cover your spouse for your lost income in the event of your death. You want this policy to last until what would be your normal retirement age of 65. Based on the given information, what is the best policy to buy?

- C .

A combination washer/dryer costs $1,179. New parts for this washer/dryer cost $211, labor to repair it costs $553, and shipping it to and from a repair center costs $152. A full warranty, which covers all aspects of repairing the washer/dryer, costs 30% of the price of the washer/dryer. A limited warranty, which only covers labor costs, only costs 14% of the price of the washer/dryer. Assuming that the washer/dryer needs repairs which include parts, labor, and shipping, which warranty is the better deal, and by how much, rounded to the nearest dollar?

- D .

Because Bernard has some health issues, he must pay 15% more for life insurance. About how much more annually will a $115,000 10-year term insurance at age 35 cost Bernard than someone of the same age without health issues?

- D .

Below is the information from a brochure for Fret-No-More Auto Insurance outlining the insurance coverage options they offer. To be considered "full" coverage, an insurance plan must include one level of coverage from each category. What is the annual premium for the full-coverage insurance plan with the highest coverage limits and the lowest deductibles available from Fret-No-More?

- D .

Billy's employer pays for 65% if his annual health insurance premium. Billy has the rest deducted in equal amounts from his paycheck. If Billy has $105.73 withheld from his paychecks twice each month, how much does his employer contribute towards his health insurance on an annual basis?

- D .

Jeremy is 29 years old and in good health. What is the annual premium for the cheapest policy having a $90,000 face value that Jeremy can buy?

- D .

Lamar, age 43, wants to pay no more than $1,000 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $12.59, what is the largest whole life policy he can buy without spending more than $1,000 annually?

- D .

Ralph wants to purchase a renters insurance policy for his new apartment. His insurance company charges an annual premium of 16.53% of the approximate value of the items he owns and is keeping in his apartment. Below is a list of items Ralph made of the items he has in his apartment that he would like to be insured with his policy. What will Ralph's annual renters insurance premium be?

- D .

The extended warranty on a $960 dishwasher is 21% of the purchase price and lasts for eight years. What is the effective cost per year of the extended warranty?

- D .

The extended warranty on a garage door is $238. If the warranty costs 35% of the purchase price, how much does the garage door itself cost, to the nearest dollar?

- D .

Which of the following is not a reason young drivers have higher auto insurance premiums than older drivers?

- D .

Which of the following is not a way health insurance helps to save you money?

- D .

Which of the following will not help Robert lower his homeowners insurance premium?

- D .

what is a benefit with job rotation

- Gives employees variety and allows them to use different skills - Reduces boredom and burnout, leading to greater job satisfaction - Allows for free exchange of information and idea - Keeps work flowing when one worker is absent

Dow Jones

- Most well-known type of stock index - Now it prices weight average of the 30 most significant stocks traded on the NYSE and the Nasdaq.

what is the functions of unions

1. Recruit new members 2. Engage in collective bargaining 3. Support political candidates who support members' interest 4. Provide support services for members

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?

23%

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?

3

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

A lender estimates the closing costs on a home loan will be 3% of the loan amount of $180,000. The actual closing costs are listed below. Evaluate the lender's good faith estimate. a. The lender made an excellent estimate; it was equal to the actual closing costs. b. The lender made a very good estimate; it was within 0.25% of the actual closing costs. c. The lender made a fairly good estimate; it was between 0.25% and 0.5% of the actual closing costs. d. The lender made a poor estimate; it was higher than 0.5% of the actual closing costs.

A

A toaster oven costing $130 offers an extended warranty for 25% of the purchase price. If the local repair shop will fix a toaster oven for $8, how many times must the toaster oven break in order for the warranty to pay for itself? a. five b. six c. four d. one

A

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

A

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

A

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

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

An account paying 4.6% interest compounded quarterly has a balance of $506,732.32. Determine the amount that can be withdrawn quarterly from the account for 20 years, assuming ordinary annuity. a. $9,722.36 b. $6,334.15 c. $23,965.92 d. $7,366.99

A

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

A

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

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

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 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

Ana is retiring next year from the school that she has taught at for the last 25 years. Her pension pays a monthly salary of $1,562.32. She also receives a monthly income from an IRA that she has made regular monthly payments, in the amount of $230.32, for the last 15 years. If Ana plans on using her pension and the funds from her IRA as her primary source of income for the next 10 years, determine Ana's monthly income given that her IRA compounds interest at 2.3% monthly. Round to the nearest cent. a. $2,024.02 b. $1,887.42 c. $461.70 d. $325.10

A

Andrea is shopping for items for her pet sitting business because the store is having a sale where everything in the store is 5% off. Andrea buys a cat carrier for $39.99 and a cat tower for $19.99. She has a coupon for an additional 15% off on the cat tower. Before tax, Andrea estimates that her total, after discounts, will be about $54. Determine if Andrea has estimated correctly. a. Yes. Andrea has estimated correctly. b. No. Andrea has taken 20% of the total, which is not correct.. c. No. Andrea has taken successive discounts on the total, but the coupon is just on the cat tower. d. No. Andrea has only taken the 5% discount on the cat tower and not on the carrier.

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

Ben just purchased a house in an older neighborhood. After talking to several neighbors across the street, he found that he is paying much more in homeowners insurance than other homeowners in the neighborhood. Ben's house is about 30 years old. It is made of wood framing and stucco texture. It has all of it's original plumbing and electrical work. The brick wall at the back of his back yard separates his yard from a drainage wash. Which of the following is not a reasonable argument for the insurance company to use to justify Ben's higher homeowners insurance premium? a. The age and outdated structural design of the house implies that remodeling is likely. This warrants a higher premium. b. Knowing that old plumbing has a tendency to break, there is a real possibility of internal flooding. This warrants a higher premium. c. Since Ben is right next to a drainage wash, there is a certain danger of flood damage should the wash overflow. This warrants a higher premium. d. Considering that the house is made of flammable materials and has the original wiring, there is a certain danger of fire. This warrants a higher premium.

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

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

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

Budgeting for home maintenance early can save money in the long run. Why save early compared to later, especially if the home is new? a. Home maintenance is unpredictable, but it is important to do it promptly, or it will result in home damage that requires repair. b. Homebuilders are often untrustworthy and do low quality work, requiring home owners to fix or finish a lot of things on their own. c. Homeowners often run into problems soon after purchasing a brand new house. d. Homeowners always have a lot of money after moving into a house they purchased, so they save it for the future.

A

Byron is a wealthy tycoon who makes his money buying and selling stocks. This is an example of _____ income. a. capital gains b. earned c. hourly d. passive

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

Cheryl wants to purchase a par value $500 bond from Agram Imports. Agram Imports bonds have a market rate of 102.114 and offer 8.1% interest. If Cheryl's broker charges a commission of 2.5% of the market value of each bond sold, what is the current yield on Cheryl's bond? a. 0.077 b. 0.078 c. 0.081 d. 0.040

A

Choose the method of pay that would result in the most earnings for one month on sales of $40,000. a. Straight commission of 7.5% on all sales. b. Monthly salary of $1,600 plus 2.5% commission on all sales. c. Graduated commission of 5% on the first $30,000 in sales and 6% on anything over that. d. Graduated commission of 4% on the first $25,000 in sales and 8% on anything over that.

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

Corporate bonds from Dagofi Radar are selling at 88.354, bonds from Chambers Translation are selling at 112.894, and bonds from Essentia Inc. are selling at 96.262. If Roger wants to buy two bonds with a par value of $1,000 each from Dagofi Radar, five bonds with a par value of $500 each from Chambers Translation, and four bonds with a par value of $1,000 each from Essentia Inc., how much can he expect to spend? a. $8,439.91 b. $8,500.00 c. $2,975.10 d. $9,343.97

A

Corporate bonds from Hyren Airlines are selling at 106.133, bonds from Xyx Motors are selling at 97.701, and bonds from Ergar Appliances are selling at 101.294. If all of the bonds mentioned have a par value of $1,000 apiece, how much will it cost George to purchase one from each corporation? a. $3,051.28 b. $3,000.00 c. $3,305.12 d. $2,694.88

A

Darius wants to purchase his favorite salad dressing. The salad dressing comes in two different size bottles. The 16 ounce bottle is on sale for $3.36. The 10 ounce bottle is priced at $2.30. Darius has a coupon for 40 cents off if you buy two 10 ounce bottles. Determine if Darius gets the better buy when he buys one 16 ounce bottle or when he buys two 10 ounce bottles. a. Darius will get the same deal on either purchase. b. Darius will get the better deal buying one 16 ounce bottle. c. Darius will get the better deal buying two 10 ounce bottles. d. Darius doesn't need the coupon, he will get the best deal on one 10 ounce bottle.

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

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

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

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

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

Ethan is planning for his retirement. He has narrowed it down to two investment options. The first is an IRA where monthly payments are made, in the amount of $416.66, for 30 years. The second is a Roth IRA where annual payments are made, in the amount of $5000, for 30 years. If both compound interest at a rate of 2.5%, determine which account will yield the largest future value for Ethan, and how much greater that value will be than that of the other account. Round your final answer to the nearest cent. a. IRA; $3,552.72 b. Roth IRA; $3,552.72 c. IRA; $1,470.39 d. Roth IRA; $1,470.39

A

For each of the following wages, determine the Medicare tax that would be withheld. i. $23,660 ii. $89,000 iii. $166,090 a. i. $343.07 ii. $1,290.50 iii. $2,408.31 b. i. $3,430.70 ii. $12,905.00 iii. $24,083.05 c. i. $146.70 ii. $551.80 iii. $1,029.76 d. i. $1,466.92 ii. $5,518.00 iii. $10,297.58

A

For the last 10 years, Megan has made regular semiannual payments of $1,624.13 into an account paying 1.5% interest, compounded semiannually. If, at the end of the 10 year period, Megan stops making deposits, transfers the balance to an account paying 2.3% interest compounded monthly, and withdraws a monthly salary for 5 years from the new account, determine the amount that she will receive per month. Round to the nearest cent. a. $616.39 b. $615.21 c. $39,079.25 d. $39,154.16

A

For which of the funds shown would you pay the most commission on the purchase of 100 shares? a. Green Energy b. TJH Small-Cap c. Upton Group d. WHI Health

A

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

A

Frances bought 144 shares of Dwyn Horticulture for $7.73 apiece. Her broker charged her a commission of $46.15 for the purchase. If the yearly dividend on Dwyn Horticulture is 61 cents per share, what is the annual yield on Frances's stock? a. 0.0758 b. 0.0789 c. 0.0132 d. 0.0320

A

Frank and Lynn are co-workers getting paid the same salary. They both decide to quit their jobs and start going to school on the same day. Frank gets a degree after just 18 months and spends $6,500 dollars on his education. Lynn only spends $3,500, but it takes her 2 years to get her degree. Assuming that they each will make $6,000 more per year after graduating, which of the following is true? a. Frank will recover his investment at an earlier date than Lynn. b. Lynn will recover her investment at an earlier date than Frank. c. Frank and Lynn will recover their investments on the same date. d. There is not enough information given to know who will recover their investment first.

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

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

A

Given the following information, determine if one of the brands is a better buy. Brand A: 14 ounces for $44.66 Brand B: 20 ounces for $63.80 a. Both brands cost the same per ounce. b. Brand A is the better buy. c. Brand B is the better buy. d. There is not enough information provided to determine the better buy.

A

Given the graph below, predict the cost of utilities for Seattle, WA for the month of September based on the relationship with the other plotted line for Baltimore, MD. a. $263 b. $360 c. $151 d. $73

A

Hank is a salaried plus commission employee. Hank has a monthly salary of $2,500 and earns 5.5% commission on all sales. Which of the following expressions represents Hank's total earnings in one month if he has $6,300 in sales? a. 2,500 + (0.055)(6,300) b. 2,500 + (5.5)(6,300) c. (2,500) (5.5) + 6,300 d. (2,500) (0.055) + 6,300

A

Health insurance helps to protect you from financial loss by _____. a. paying for some or all of your medical costs while you are insured. b. working with medical care providers to minimize or discount the total cost of medical care. c. connecting you with health care representative to help keep you in good medical condition to avoid excessive medical care costs. d. informing you about lectures, classes, and presentations that help inform you about maintaining good medical condition to avoid excessive medical care costs.

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 Jesse wants to buy a $75,000 10-year term life insurance policy, and the annual premium rate (per $1000 of face value) for his age group is $2.34, how much is Jesse's annual premium? a. $175.50 b. $3,205.12 c. $234.00 d. $1,755.00

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

If the purchase price for a house is $218,500, what is the monthly payment if you put 3.5% down for a 30 year loan with a fixed rate of 6.5%? a. $1,332.73 b. $1,378.19 c. $1,247.54 d. $646.40

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

In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below. If Kevin is currently insured under Leroux for his medical insurance under Plan A, how will the proposed changes affect his health care costs? a. Costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured. b. Costs for regularly scheduled health care will go up, but Kevin will probably pay less than he would have if he finds himself seriously ill or injured. c. Both the cost for regularly scheduled health care and the cost for emergency health care will go down, making the changes very good for Kevin. d. Both the cost for regularly scheduled health care and the cost for emergency health care would go up, contradicting the intentions of Leroux Insurance.

A

Isaiah is trying to decide if the interval use plan is better than the standard use plan for his electricity consumption. Calculate the monthly costs of both plans if he uses 1,275 kWh of electricity per month with 575 kWh on-peak usage and the rest off-peak usage. Standard Use Plan Interval Use Plan 7.5 cents/kWh for the first 400 kWh 10 cents/kWh for anything over 400 kWh On-peak hours - 15 cents/kWh Off-peak hours - 3 cents/kWh a. standard use plan - $117.50; interval use plan - $107.25 b. standard use plan - $87.50; interval use plan - $86.25 c. standard use plan - $117.50; interval use plan - $86.25 d. standard use plan - $87.50; interval use plan - $107.25

A

It is important to re-evaluate financial goals periodically. In which of the following situations would it be necessary to change an existing financial goal? a. You fell sharply behind your expected schedule with regard to saving. b. You recovered from an unexpected expense and are rattled that you did not see it coming. c. You married, and your spouse has a similar financial goal. d. You came across unexpected income.

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

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

Joseph paid $105,000 for his home twenty years ago. Since then, his house has increased its property value by 2.0% every year. In addition, Joseph has made renovations and improvements to the house which will increase its sale value by $28,700. If Joseph sells his home, how much profit will he make, to the nearest hundred dollars? a. $79,700 b. $84,700 c. $93,700 d. $122,400

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

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

A

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

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: Kito selects express shipping and the company bills his credit card $105.69 for the total of the online purchase. Determine if Kito has been billed correctly for his purchase. a. Kito has been billed correctly. b. Kito has not been charged enough for his purchase. c. Kito has been over charged by $1.85 for his purchase. d. Kito has been over charged by $3.40 for his purchase.

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

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

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

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

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

A

Luis wants to buy a home priced at $315,000. He plans to finance this amount less the down payment required. His mortgage payment would then be $2100. Luis has an annual income of $91,500 and $65,000 in savings. Luis has a car payment of $370, a student loan payment of $165 and a credit card payment of $45. Use a 20% down payment and the 28/36 ratio to determine if Luis is eligible for a loan. What would you advise him to do if he is not eligible? a. Luis is eligible for a home loan; he meets all of the requirements. b. Luis is not eligible for a home loan; he should continue to save for a down payment. c. Luis is not eligible for a loan; he should look for a cheaper house. d. Luis is not eligible for a loan; he should reduce his recurring debt.

A

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

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

Maggie noticed that her financial record is missing information. She recalls that on October 15th, she purchased gasoline in the amount of $32.51 and on October 16th, she and her friends went out for dinner, where she spent $25.62. Given this information, and the image below, determine her balance as of October 26th.

A

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

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

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

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

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

Mary pays income tax according to the graduated schedule shown below. If Mary's taxable income is $68,562, how much income tax does she owe, rounded to the nearest dollar? a. $13,564 b. $17,140 c. $21,527 d. $12,349

A

Mrs. Jones has received her bank statement and is ready to reconcile it with her checkbook register. Fill out the reconciliation worksheet for Mrs. Jones using the data from her bank statement and checkbook register. Assume all transactions on previous pages have already cleared. Consider what must be done, if anything, in order to finish the reconciliation process. a. Line 6 is $10.00 higher than line 5; look back at the statement to find the discrepancy. b. Any transaction that appears on the register must still be added to the bank statement. c. Add lines 5 and 6 together. d. The rent of $600 is in your checkbook but not on your bank statement.

A

On average 113,204 aluminum cans are recycled in a minute. Approximately how many cans will be recycled in 16 days? (Express your answer in scientific notation.)

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

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

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

Rachel just purchased a homeowners insurance policy for her new home that costs $0.43 per $100. Her home is worth $387,500. What is Rachel's annual homeowners insurance premium? a. $1,666.25 b. $2,208.75 c. $8,802.33 d. $9,011.63

A

Rank the following kinds of bonds in order from least secure to most secure: Municipal, Corporate, Treasury a. Corporate, Municipal, Treasury b. Treasury, Corporate, Municipal c. Treasury, Municipal, Corporate d. Municipal, Corporate, Treasury

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

Rauol made an investment in 155 shares of stock in a load fund for $3,117.05. After one year the stock had a net asset value of $18.35 per share. If Rauol redeems all 155 shares, which of the following is a correct statement? a. Rauol will have a loss of $272.80. b. Rauol will have a profit of $272.80. c. Rauol will have a profit of $2,844.25. d. There is not enough information to calculate profit or loss.

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

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

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

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

Sal and two of his friends rent an apartment together. Their total cost to move in included first month's rent, last month's rent and a security deposit of $1,200. If Sal paid a total of $1,000 to move in, how much is his share of the rent each month? a. $300 b. $450 c. $600 d. $900

A

Sarah is 27 years old and is retiring at the age of 65. When she retires, she estimates that she will need a semiannual income for 20 years. If Sarah contributes 9% of her semiannual income of $18,567.11 to a 401(k) paying 6.1% compounded semiannually, approximately what semiannual income will she be able to draw? (Hint: Find the future value of her investment prior to retirement and use that amount as her investment amount upon retirement) a. $21,050.02 b. $21,692.05 c. $20,407.99 d. $14,629.72

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

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

Suppose that a family wants to start a college fund for their child. If they can get a rate of 5.2%, compounded monthly, and want the fund to have a value of $55,500 after 20 years, how much should they deposit monthly? Assume an ordinary annuity and round to the nearest cent. a. $131.93 b. $2,662.49 c. $1,643.30 d. $3,446.64

A

Suppose that a family wants to start a college fund for their child. If they can get a rate of 5.5% , compounded monthly, and want the fund to have a value of $35,450 after 20 years, how much should they deposit monthly? Assume an ordinary annuity and round to the nearest cent. a. $81.38 b. $80.01 c. $11,829.97 d. $11,776.00

A

Susan is paying $0.30 per $100 on her $483,000 home in homeowners insurance annually. If her annual homeowners insurance premium is divided into twelve equal monthly installments to be included on each of her monthly mortgage payments of $2128.00, what is her total monthly payment? a. $2,248.75 b. $2,409.75 c. $3,381.00 d. $3,577.00

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 Long family spent $38.62 for school supplies and $215.78 for new school clothes. They paid 6.8% 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 Reed and the Merrill families are comparing their utility costs for the past month. The following is a list of the appliances that the families are using to make their comparisons: Reed Family Appliances Merrill Family Appliances Gas range 5 cents per day Electric range 13 cents per day Gas dryer - 1 load per day 10 cents per load Gas dryer - 1 load per day 10 cents per load Electric water heater 90 cents per day Gas water heater 40 cents per day Typical later model refrigerator 16 cents per day Energy Star-labeled refrigerator 12 cents per day Assuming that the families use the same appliances in the same way, who spends more to run these appliances in a given 30 day period and by how much?

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

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

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

A

The 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 following list shows the items and prices for a restaurant order. Calculate the total amount if there is 7.5% tax and the customer leaves a 15% gratuity. 1 appetizer: $8.99 2 entrees: $14.99 each 1 entree: $12.99 3 drinks: $1.99 each a. $70.96 b. $71.62 c. $75.31 d. $75.97

A

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

A

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

A

The national average utility cost is $270.48 per month. If the average electric bill is 44.9% of the total amount and the average utility cost for Orlando, FL is $308.83, what would be the cost of a typical Orlando electric bill and how would that compare with the national average? a. The typical Orlando electric bill would be $138.66, which would be $17.21 more than the national average. b. The typical Orlando electric bill would be $121.54, which would be $17.21 less than the national average. c. The typical Orlando electric bill would be $138.66, which would be $76.64 more than the national average. d. The typical Orlando electric bill would be $121.54, which would be $76.64 less than the national average.

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

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

Tony invested $5,500 in a four-year CD that paid 4.8% interest, but later needed to withdraw $475 early. If the CD's penalty for early withdrawal was three months' worth of interest on the amount withdrawn, how much of a penalty did Tony pay? a. $5.70 b. $22.80 c. $60.30 d. $66.00

A

Tracy buys 150 shares of Upton Group and 100 shares of WHI Health. What is Tracy's total investment? a. $4,940.00 b. $5,040.00 c. $5,914.50 d. $5,988.00

A

Tracy was involved in an accident in which the other driver suffered severe injuries. The police determined that the accident was Tracy's fault. Tracy is fully insured through her insurance company. Which of the following components of Tracy's insurance policy will cover the injuries of the other driver? a. bodily injury b. property damage c. collision d. comprehensive damage

A

Trent is 25 years old and works for a company that matches his 401(k) contribution up to 5%. The interest rate for his 401(k) is 7.3%. If he puts away 10% of his $32,000 salary every year, how much would he have saved in 10 years? Round your answer to the nearest cent. a. $67,266.16 b. $72,176.59 c. $33,250.60 d. $35,677.89

A

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

A

Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with an annual income of $86,250. a. $575.00 b. $2,012.50 c. $2,415.00 d. $2,587.50

A

Using the following prices, calculate the unit price to determine how much it would cost for 7 granola bars and 9 bottles of water. $7.14 for 6 granola bars $8.72 for 8 bottles of water a. $18.14 b. $18.63 c. $21.41 d. $31.72

A

Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in costs of $2,380 and monthly payment of $845. Buy: Move-in costs of $5,260 and monthly payment of $785. Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Choose the best evaluation of Viola's decision. a. Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 4 year period as long as she doesn't have major repairs to make. c. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 4 year period. d. There is not enough information given to determine which option is best.

A

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 does it mean that stocks and bonds are relatively liquid? a. They are easier to buy and sell than other forms of investment. b. They tend to go up and down in value. c. The amount of income they can bring changes frequently. d. There are more of them to choose from than other forms of investment.

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 actual net income for the month? What, if any, changes could have been made to the actual amounts this month to keep the actual net income at a positive value? a. The actual net income for the month is -$85. Less money could have been spent on food, recreation and clothes. b. The actual net income for the month is $85. No changes necessary. c. The actual net income for the month is -$85. No changes necessary. d. The actual net income for the month is $85. Less money could have been spent on food, recreation and clothes.

A

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

When 500 phone books are recycled, which of the following statements is false? a. conserves around 9 cubic yards in landfill space b. conserves around 17-31 trees c. conserves around 4,077 kilowatt hours of energy d. conserves around 463 gallons of oil

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 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 is a benefit Social Security does not offer? a. automobile insurance b. disability insurance c. retirement insurance d. survivor insurance

A

Which of the following is an advantage of renting? a. ease of mobility b. economic gain c. financial risk d. tax savings

A

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

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 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 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 something that will not affect your homeowners insurance premium? a. the distance of the home from a school b. the distance of the home from a flood plain c. the distance of the home from a fire station d. the distance of the home from a fire hydrant

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

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

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 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.

A

Which of the following services will be provided by a full-service broker but not by a discount broker? I. Research of potential investment opportunities II. Purchase and sale of stock at your request III. Recommendation of investments a. I and III b. II only c. III only d. I, II, and III

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

Which of the following statements best describes the difference between sales tax and property tax? a. Sales tax is applied to items as they are purchased while property tax is applied to items already owned. b. Sales tax is applied repeatedly while property tax is paid only once for as long as you own the item. c. Sales tax can be applied to a new speed boat while property tax cannot. d. Sales tax is strictly meant for food and consumables while property tax is meant for non-food items.

A

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

A

Which of these statements is most accurate regarding mortgage payments through the life of your loan? a. At the beginning of your loan, your payments are covering mostly interest. At the end of your loan, your payments are covering mostly principal. b. The amount for your mortgage payments will decline over the life of your loan. c. The amount of interest paid per mortgage payment will remain the same over the life of your loan. d. The amount of principal paid per mortgage payment will decrease over the life of your loan.

A

Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan? a. PPO insurance plans offer a wider choice of primary care doctors and specialists. b. HMO insurance plans have higher deductibles and copays. c. PPO insurance plans have higher deductibles and copays. d. HMO insurance plans require a referral for a patient to visit a specialist.

A

Why do certificates of deposit tend to offer better interest rates than money market accounts? a. Certificates of deposit involve a longer time commitment than money market accounts, so they carry a greater return. b. Certificates of deposit are only available to the bank's most proven and valuable customers, so the bank can afford to give a greater interest rate on them. c. They do not offer a better interest rate. Money market accounts tend to have the best interest rates of any bank deposit. d. Money market accounts invest your money but sometimes lose some of it, so the lower interest rate pays for the difference.

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 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

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 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 make $443 per week, and have claimed five exemptions. How much money will be withheld from you in a year?

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

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

You put $125.32 at the end of each month in an investment plan that pays 2.5% interest, compounded monthly. How much will you have after 23 years? Round to the nearest cent. a. $46,683.28 b. $4,564,471.88 c. $2,949.39 d. $3,832.84

A

Your broker charges a commission of 5.1% of the cost of the stock you sell. If you sell a batch of stocks worth $2,617.75, how much commission will you owe your broker? a. $133.51 b. $513.28 c. $110.56 d. $392.66

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.

commission

A commission is a fee rendered either as fixed amount or based on a percentage of the total transaction.

Unit rate

A unit rate describes how many units of the first type of quantity corresponds to one unit of the second type of quantity.

In order to lower his monthly auto insurance bill, Henry has decided to change his existing policy by increasing the deductible for both collision and comprehensive insurance to the highest amount permitted by his insurance company, AA Auto Insurance. His current monthly auto insurance bill, which includes a $250.00 deductible for collision and a $50.00 deductible for comprehensive, is $43.79. How will Henry's monthly auto insurance bill be affected by the change?

A. $12.48

Because Aaron, age 32, is a smoker, he must pay more for life insurance. Given that Company A charges 20% more for smokers, Company B charges 18% more for smokers, Company C charge 25% more for smokers and Company D charges 15% more for smokers, Aaron decides to buy his $250,000 policy from Company B. Which of the following statements is true?

A. Aaron is paying the smallest premium possible with Company B.

Between permanent life insurance and term life insurance, which typically has the lower premium and why?

A. Term life insurance has the lower premium because term life insurance pays the face value to your beneficiary if you die within a certain set period of time, whereas whole life insurance covers you your entire life.

ATM fees

ATM usage fees are the fees banks charge for the use of their Automated Teller Machines (ATMs).

Which of the following statements best describes the difference between a health maintenance organization (HMO) and a preferred provider organization (PPO)?

An HMO requires the insured individual to go to a provider within their organization while a PPO allows the insured individual the option to receive care from a non-preferred provider at a higher cost.

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.

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

B

A married couple buys 280 shares of stock for a total investment of $8,722. They decide to sell all of their shares in the fund at the listing value shown below. Determine if the couple makes a profit or loss, and how much per share. a. loss of $0.05 per share b. loss of $0.10 per share c. profit of $0.05 per share d. profit of $0.10 per share

B

A mutual fund's net asset value increases by $5 per share. An investor who owns 450 shares of this fund sells them all for a profit of $2,205. What can you conclude about the fund? a. The fund is a no-load fund. b. The fund had a $0.10 per share commission when purchased. c. The fund had a $1.00 per share commission when purchased. d. The fund had a $0.10 per share commission when sold.

B

A new DVD player has a purchase price of $430. With the extended warranty, the total cost is $512. What percent of the purchase price is the price of the warranty? a. 16% b. 19% c. 24% d. 29%

B

A savvy shopper combines a 25% off coupon with the store's existing 25% off sale. Ignoring sales tax, how much of the base price should the shopper expect to pay? a. 75% b. 56.25% c. 50% d. 43.75%

B

A tip employee's earnings most closely resemble those of which of the following? a. An employee working on straight commission b. An employee working on commission plus salary c. An employee working on a piece-rate basis d. An employee working on a fixed salary

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

After being involved in a car accident last month, Ralph's insurance company has increased his annual premium by $105.38. Approximately what change will Ralph see on his future monthly statements as a result of the change? a. Ralph's monthly insurance payment will not change. b. Ralph's monthly insurance payment will increase by $8.78. c. Ralph's monthly insurance payment will increase by $17.56. d. Ralph's monthly insurance payment will increase $105.38.

B

Aleisha wants to buy a condominium. She has the choice of buying it now or renting it with the option to buy at the end of 4 years. If she rents now, she must pay a deposit of $1,500 and pay rent of $865 per month. If she buys, she would need closing costs and her mortgage payment would be $844. How much would her closing costs need to be in order for the cost to buy to be the same as the cost to rent? a. $4,008 b. $2,508 c. $1,521 d. $1,008

B

Alistar has an annual income of $25,000. He decides to take classes on line and at night so that he can continue to work. After 3 years he gets his degree and immediately starts earning $32,000 per year. If it takes Alistar 6 years to recover his investment for his education, how much did it cost him? a. $21,000 b. $42,000 c. $63,000 d. $150,000

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

Allie and Sarah decided that they want to purchase renters insurance for the apartment they share. They made a list of all of the items to be covered by the insurance policy, along with their estimated values. If the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. If the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items. Using the list of items Allie and Sarah provided, determine their monthly renters insurance premium.

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

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

B

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

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

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?

B

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

B

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

B

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

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

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

Choose the method of pay that would result in the most earnings for one month on sales of $73,620. a. Straight commission of 6% on all sales. b. Monthly salary of $3,000 plus 2% commission on all sales. c. Graduated commission of 4% on the first $50,000 in sales and 9% on anything over that. d. Graduated commission of 5% on the first $35,000 in sales and 7% on anything over that.

B

Christina will be retiring next month from her job after 35 years as a school bus driver. Over the last 35 years, Christina's annual salary averaged $22,040. She expects to receive some money each month from Social Security and plans to take the rest of the money she needs to pay the monthly bills from savings. Each month her bills total to about $1,375. Assuming her annual Social Security benefit will be 42% of her salary average, how much will she need to take from savings each month to help pay the bills? a. At least $771.40 b. At least $603.60 c. At least $629.71 d. At least $1,722.08

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

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

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

Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings. a. $901.41 b. $9,014.10 c. $1,262.25 d. $12,622.50

B

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

B

Edward purchased his home for $89,000. For the first three years after he moved in, the real estate market was very lively, so his property value grew by 4.8% every year. For the next five years, the market slowed down somewhat, and his property value grew by 2.6% every year. How much had the value of Edward's home increased after eight years, to the nearest hundred dollars? a. $25,700 b. $27,500 c. $30,000 d. $13,200

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

Elizabeth has $252.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: On what day does Elizabeth first get charged an overdraft fee? a. Wednesday b. Thursday c. Friday d. Saturday

B

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

B

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

B

Enter the following transactions into Richard's checkbook register and state his ending balance: Date Type Description Amount 03/01 Check #204 Blue Sky Apartments $455.00 03/05 DEP Payroll automatic deposit $390.36 03/08 Debit Benny's Hamburgers and Fries $9.20 03/15 Check #205 Car payment $251.59 03/19 DEP Payroll automatic deposit $390.36 a. $715.79 b. $1,009.81 c. $780.72 d. $880.24

B

Eva is 29 years old and has 2 children, ages 3 and 5. She makes $48,500 a year. Eva decides to buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards. To renew the policy the insurance company charges an extra 40% to her premium rate. Given the options below, assess whether Eva made a wise decision.

B

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

Fees paid at the time of a home loan transaction between the buyer, seller and lender are called _____. a. application costs b. closing costs c. lending costs d. purchase costs

B

Five years ago, William bought a twelve-room apartment complex for $340,000, and he plans to sell it today. The real estate market caused William's complex to increase in value by 1.8% every year. William charges $525 per month to rent a room, and pays $36,500 in building upkeep every year. If William has kept all of his apartments continually rented out since he bought the building, to the nearest hundred dollars, how much profit will he realize once he sells it? a. $195,500 b. $227,200 c. $226,100 d. $245,500

B

Gareth bought a home for $135,000. The home gained 2.2% in value every year for eight years until Gareth sold it. How much profit did Gareth make, to the nearest hundred dollars? a. $60,700 b. $25,700 c. $23,800 d. $29,100

B

Gerald would like to add a dental and vision option to the health insurance plan he purchased through his employer. In addition to the 65% of Gerald's $345 monthly health insurance premium, his employer has offered to pay 50% of a $38 monthly dental premium and 75% of a $23 monthly vision premium. If Gerald adds both the dental and vision options to his insurance plan, how much will he pay each month towards health insurance?

B

Giselle wants to buy a condo that has a purchase price of $163,000. Giselle earns $2,986 a month and wants to spend no more than 25% of her income on her mortgage payment. She has saved up $33,000 for a down payment. Giselle is considering the following loan option: 20% down, 30 year at a fixed rate of 6.25%. What modification can be made to this loan to make it a viable option, given Giselle's situation? a. Change to a 15 year fixed loan b. Change the interest to 5.5% c. Change the down payment to 18% down d. None. This is a viable option for Giselle

B

Give an example of when an actual net income would result in a negative number. a. When the budgeted expenses exceed the actual expenses, the result is a negative actual net income. b. When the actual expenses exceed the actual income, the result would be a negative dollar amount. c. When the budgeted income is less than the actual income, the result is a negative actual net income. d. When the actual expenses are less than the actual income, the result is a negative dollar amount.

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

Glenda bought a new car with monthly payments of $357. Glenda manages to make her monthly car payments each month, but fails to perform the routine maintenance, like regular oil changes, because of the cost. To ensure that regular maintenance on her car can get done, which part of her financial plan should Glenda work on? a. financing b. income c. investing d. saving

B

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

B

Greg invests $2,680 in a CD paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. How much more interest will the CD have earned than the savings account after 1 year? a. $25.90 b. $49.90 c. $380.00 d. $499.00

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 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

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

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 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 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 the lowest price in the past year occurred 48 days ago, find the approximate average change per day since then. a. $4.74 b. $0.72 c. $0.49 d. $1.34

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 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

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

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 an effort to reduce cost on auto insurance, Sophia has lowered each component of her current plan to the cheapest possible option. Sophia's current insurance agency is Fret-No-More Auto Insurance, whose policy options are listed below. The annual premium for Sophia's current policy is $511.31. What decrease in her annual premium will Sophia see after the change?

B

In many cases, lenders allow homeowners to include their homeowners insurance premium with their monthly mortgage payment. Tim's home is worth $279,500. If his homeowners insurance premium is $0.33 per $100, how much is added to his monthly mortgage payment for insurance? a. $7.69 b. $76.86 c. $92.35 d. $922.35

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

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

In what range do the closing costs on a home loan typically fall? a. 1% to 3% b. 3% to 5% c. 5% to 7% d. 7% to 10%

B

In which of the following stores would you pay the least amount for an item that is priced $360? Store A: Sale of 10% off and a successive discount of 10% off. Store B: Sale of 15% with no additional discount. Store C: Sale of $35 off and a successive discount of 10% off. a. All of the stores have the same discounted price. b. You can get the lowest price at Store A. c. You can get the lowest price at StoreB. d. You can get the lowest price at Store C.

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

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

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

B

Jackie's broker charges her a commission of $8 per ten shares of stock she buys or sells. If Jackie buys 77 shares of Alesia Insurance at $10.34 per share and 120 shares of Ergar Appliances at $8.11 per share, how much will Jackie spend in commission? a. $796.18 b. $157.60 c. $973.20 d. $1,926.98

B

Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium table, what is her annual premium for a 10 year policy?

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

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

Jim and Stephanie just got married and are thinking about changing their health care insurance plans to be more affordable. Currently, both Jim and Stephanie are insured through their own employers. Jim's employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries. Stephanie's employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary.

B

Julien was involved in an accident in which he merged into another car, damaging the front fender of the other car. Julien is fully insured through his insurance company. Which component of Julien's insurance plan will cover the damage he caused to the other car? a. bodily injury b. property damage c. collision d. comprehensive damage

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

Leo is 23 years old and works for a company that matches his 401(k) contribution up to 4.6%. The interest rate for his 401(k) is 5.32%. If he puts away 8% of his $65,000 salary every year, how much would he have saved in 10 years? Round your answer to the nearest cent. a. $7110,127.51 b. $104,564.67 c. $65,582.40 d. $62,269.66

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

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

Marco leaves the bathroom faucet running for 22 minutes while he gets ready in the morning. Running the faucet for 5 minutes wastes the same amount of energy as leaving a 60-watt light bulb on for 14 hours. How much energy did Marco waste, in terms of hours which a 60-watt light bulb would remain on? a. 7.9 hours b. 61.6 hours c. 56.0 hours d. 264.0 hours

B

Maria, age 28, wants to pay no more than $300 a year in life insurance. What is the face value of the largest 20-year term policy she can buy without spending more than $300 annually?

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

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

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

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

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

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

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

One possible solution to a diminishing Social Security payroll is to decrease the Social Security benefit by 13%. How would such a decrease effect the benefits on a salary of $54,000? a. Benefit would decrease by $1,404 annually. b. Benefit would decrease by $7,020 annually. c. Benefit would decrease by $8,640 annually. d. Benefit would decrease by $15,660 annually.

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

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

B

Peter and Marcia, both age 34, can pay $650 a year each on life insurance. About how much is the face value of the largest combination of policies they can buy without spending more than a combined $1,300 annually?

B

Peter wants to buy a duplex with a purchase price of $226,950. Peter can afford a 10% down payment. Peter earns $2,985 a month and wants to spend no more than 10% of his income on his mortgage payment. Peter is going to rent out the other half of the duplex. He thinks that if he charges $900 a month in rent this will cover the remainder of his mortgage payment. Given that Peter has a 30 year mortgage with a fixed rate of 6.25%, how should Peter adjust how much he charges for rent of the other half of the duplex? a. Peter should increase the rent by $200. b. Peter should increase the rent by $60. c. Peter should increase the rent by $10. d. Peter should keep the rent at $900.

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

Sally must have a total of $2,250 to move in to her new apartment which includes first month's rent, last month's rent, a pet deposit and a security deposit. If the pet deposit is $150 and the security deposit is $750, how much is her rent each month? a. $650 b. $675 c. $750 d. $1,050

B

Sally must have a total of $2,250 to move in to her new apartment which includes first months rent, last months rent, a pet deposit and a security deposit. If the pet deposit is $150 and the security deposit is $750, how much is her rent each month? a. $650 b. $675 c. $750 d. $1,050

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

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

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

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

B

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

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

Shaniqua brings home $225 per week working 25 hours. She is able to save $25 of her earnings each week. Shaniqua wants to have $600 saved at the end of 15 weeks. She is allowed to work up to 30 hours per week if she wants. She can save all the money earned working extra hours. Which of the following statements is true? a. Shaniqua will meet her goal working 25 hours per week. b. Shaniqua must work 27 hours per week to meet her goal. c. Shaniqua must work 30 hours per week to meet her goal. d. Shaniqua will not be able to reach her goal.

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

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

Social Security and Personal Income tax are called Payroll taxes because _____. a. they help to balance the national payroll budget. b. they are automatically deducted from payroll. c. once paid, they are used to supplement the paychecks of people in need. d. you need to prove you have paid them before you can pick up your paycheck.

B

Social Security offers all but which of the following benefits? a. retirement insurance b. home loans c. survivor insurance d. disability insurance

B

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

B

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

B

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

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

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

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

The Johnsons are buying a house that costs $210,000 and can afford a 20% down payment. If the Johnsons want the lowest monthly payment, which loan option would you recommend? a. 30 year FHA, 3.5% down at a fixed rate of 6.25% b. 30 year fixed, 20% down at a fixed rate of 6% c. 30 year fixed, 10% down at a fixed rate of 6% d. 15 year fixed, 20% down at a fixed rate 5.5%

B

The Picketts have lived in their house for about 13 years. They like to keep a well-maintained property and have noticed that the paint on the exterior of their house is starting to peel. They get two bids for painting services from two different contractors. Based on the fee schedule below, which option would be the cheapest and by how much? Handyman's Paint Service Painting Plus Service $2250 all supplies and labor included for a 2-day job Two day job estimate $300 preparation work $765 labor per day $225 paint and supplies a. Painting Plus Service would be cheaper by $960 b. Painting Plus Service would be cheaper by $195 c. Handyman's Paint Service would be cheaper by $105 d. Handyman's Paint Service would be cheaper by $195

B

The average hourly earnings for a construction worker is projected to be $24.50 in 2012. Jason wants to join the construction work force after he graduates in 2012. His friend tells him that average hourly earnings for construction workers will rise by 2% from 2009 to 2012. Based on the data below, assuming that the projected hourly earnings are correct, is Jason's friend's statement accurate?

B

The following closing costs were paid on a home loan. If the closing costs were 5% of the loan amount, how much was the loan amount? a. $62,580 b. $70,880 c. $74,424 d. $177,200

B

The following list shows the items and prices for a restaurant order. Calculate the total amount if there is a 7% tax and the customer leaves a 20% gratuity. 1 appetizer: $7.39 2 entrees: $16.99 each 1 dessert: $5.29 2 drinks: $2.30 each a. $65.82 b. $65.10 c. $54.85 d. $40.60

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

The health care Jimmy's employer offers is a fee-for-service plan in which Jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. Jimmy and his family have several health related issues that demand $685.00 each month. If one of Jimmy's children were to become seriously injured at the end of the year, how much would the related health costs need to be in order for the insurance company to assume responsibility? a. $984.58 b. $4,280.00 c. $11,815.00 d. $14,417.92

B

The music store is having a 15% off sale on all classical music cds. Lyell has a coupon for 20% off any classical music cd. How much will Lyell save on a classical music cd that has a price of $23.99? a. $7.20 b. $7.68 c. $8.40 d. $9.60

B

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

B

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

B

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

B

Tim needs a new car while he attends college in the United States for the next three years. The car he would like has an MSRP of $15,000. A local dealer can get him a three-year loan with a 7% interest rate if Tim can make a $1,500 down payment. The same dealer offers the same car for lease with a money factor of 0.00271 and a residual value of 75%. The lease requires an additional fee of $1,250 to cover Tim's security deposit and the acquisition and documentation fees for the car. Tim is looking to drive the car home with the smallest monthly payment. Which of the following statements is true?

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

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 conversion that 1 ounce is approximately 28.35 grams to calculate the unit price per ounce for 283.5 grams at $5.48. a. $0.06 b. $0.55 c. $5.48 d. $54.80

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

Using the following prices, calculate the unit price to determine how much it would cost for 5 containers of yogurt and 3 containers of applesauce. $4.29 for 6 containers of yogurt $3.39 for 8 containers of applesauce a. $4.39 b. $4.85 c. $6.41 d. $7.68

B

Using the standard 28/36 guidelines, if the maximum monthly mortgage payment allowed for someone applying for a home loan is $1,085, what is their annual income? a. $36,167 b. $46,500 c. $65,100 d. $162,750

B

Using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual salary of $60,750? a. $1,215.00 b. $1,417.50 c. $1,701.00 d. $1,822.50

B

Using this information, consider the three following real estate investment strategies, and rank them from least to greatest according to how much profit they would likely make in this market, assuming that each of them purchased a house in this area at year 0. I. A house flipper, seeking to sell the house as soon as doing so becomes profitable, sells after 4 years. II. A long-term investor, seeking to hold onto the house for a long time, sells after 23 years. III. A moderate-term investor who will sell the house once it reaches a certain price, sells after 11 years. a. I, II, III b. II, I, III c. III, I, II d. Each of them will make roughly as much profit as the others.

B

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

B

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

B

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

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

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

What is "house flipping?" a. The process of transferring ownership of a house from one person to another. b. The process of buying a house with the intention of selling it for a profit after only a short time. c. The process of two people exchanging the titles to their properties. d. The process of a house's market price rapidly fluctuating.

B

What is a stock index? a. The average change in a stock's price over a given period. b. An indicator of market strength based on the prices of several specific stocks. c. A listing of all stocks available in a specific market. d. The current number of stocks in your portfolio.

B

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

B

What is the basic difference between liability insurance and collision insurance? a. Liability insurance covers only medical injuries, and collision insurance covers only property damage. b. Liability insurance covers damage that you cause, and collision insurance covers damage done to your vehicle. c. Liability insurance is optional, but most states require collision insurance. d. Liability insurance protects against theft or vandalism, and collision insurance covers against accidents or crashes.

B

What is the largest difference in stocks and bonds? a. Bonds are a binding contract, promising the holder a portion of the company's annual profit, unless it is unprofitable, while stocks are a very standard investment and pay off a predetermined amount after a period of time. b. Stocks are a share of ownership in a company and give the stockholder voting rights, while bonds are similar to lending a company or government money. c. Stocks are the most secure of all investments and bonds are some of the least secure. d. Bonds are available to the public, while stocks are reserved for the financial elite.

B

What kind of taxes are likely to pay for universities and police? a. local taxes b. state taxes c. federal taxes d. income taxes

B

What kind of warranty is often offered not through the manufacturer but instead through a third party? a. manufacturer's warranty b. extended warranty c. full warranty d. limited warranty

B

What was Art's total deposit? a. $1,701.23 b. $1,545.83 c. $1,856.63 d. $1516.35

B

What was the value of the third check Tony deposited? a. $617.60 b. $105.20 c. $31.28 d. $36.76

B

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

B

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

B

Which 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

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

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 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 expressions is equal to the total proceeds of a mutual fund? a. net assets times number of shares b. net asset value times number of shares c. offer price times number of shares d. profit minus investment

B

Which of the following expressions represents the total earnings of a commissioned employee earning 9.5% commission with sales of $8,540? a. (0.0095)(8,540) b. (0.095)(8,540) c. (0.95)(8,540) d. (9.5)(8,540)

B

Which of the following is an example of a passive income? a. receiving money from selling stocks b. receiving royalties from writing a book c. making money from selling a motorcycle d. making money by getting paid a salary

B

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

B

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

B

Which of the following is not something you should consider when evaluating an investment advisor? a. Their experience b. Whether or not they are registered with FINRA c. Whether or not they are registered with the SEC d. Their educational background

B

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

B

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

B

Which of the following statements about EnergyStar washing machines and dryers is false? a. EnergyStar washers and dryers consume 30 to 40 percent less energy per load. b. EnergyStar top-loading washers use less water than front-loading washers. c. EnergyStar washers spin-dry laundry, which reduces dryer usage. d. EnergyStar washers and dryers have less tear and wear on laundry.

B

Which of the following statements are true about WaterSense toilets? a. WaterSense toilets prevent toilet leaks b. WaterSense toilets saved customers 9.3 billion gallons of water in 2008 c. WaterSense toilets come with attached float booster d. WaterSense toilets use about 5-7 gallons of water per flush

B

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

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

B

Which of the following statements is not something you should be thinking when considering changes in your auto insurance policy? a. Higher deductibles mean lower premiums but more out-of-pocket expense in the event of an accident. b. The premium you pay guarantees that you will never have to pay more than your deductible in the event of an accident. c. The more types of insurance you include in your policy, the more protected you are from financial loss in the event of an accident. d. Lower coverage limits mean lower premiums but more restrictions on the insurance company when covering injuries and damage resulting from an accident.

B

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

B

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

B

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

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

While driving recklessly, Thomas lost control of his car and accidentally drove it into the water fountain in his neighbor's front yard. Thomas is fully insured through his insurance company. Which of the following components of his insurance policy will cover the damage he caused to his neighbors fountain? a. bodily injury b. property damage c. collision d. comprehensive damage

B

Without buying points, a monthly mortgage payment will be $1,250. Buying 1 point at closing would reduce the payment to $1,236. To the nearest year, how long would it take to break even by buying 1 point, with a $100,000 mortgage? a. 5 years b. 6 years c. 7 years d. 8 years

B

Wyatt uses a notebook for keeping financial records. He has placed dividers in the notebook so that it has different sections. Each divider also has a pocket for keeping receipts or other papers related to the records in each section. Wyatt keeps his notebook in his locker at school. Which of the following things about Wyatt's system of record keeping provides a way to separate his financial details into different categories? a. The fact that financial records are kept in the notebook. b. The fact that the notebook.has section dividers c. The fact that the section dividers have pockets. d. The fact that the notebook is kept in his locker.

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

You work for a lender that requires a 20% down payment and uses the standard debt-to-income ratio to determine a person's eligibility for a home loan. Of the following, choose the person that you would rate the highest on their eligibility for a home loan?

B

You work for a lending institution and are tasked with whether or not to approve a home loan. All applicants are required to have a 20% down payment, and the standard 28/36 ratio is used The loan application is for $230,000. You see that the applicant has an annual salary of $83,000 and a savings account balance of $50,000. The applicant also has a car payment of $315, a student loan of $140 and a boat loan of $96. How likely are you to approve the loan? a. Very likely; recurring debt is considerably less than what is allowed. b. Somewhat likely; recurring debt is very close to what is allowed. c. Not likely; recurring debt is higher than what is allowed. d. There is not enough information given to determine the answer.

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

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

Zalia meets her friend at the science museum to see a special exhibition. The admission to the museum is $12.50 plus tax. Zalia pays for herself and her friend. They have lunch at the museum's cafe. Zalia has a sandwich for $5.95, an apple for $1.25 and a drink for $1.69. She is charged tax and also tips her server 15%. If tax is 7.25%, how much did Zalia pay all total for her day at the science museum? a. $41.43 b. $37.68 c. $36.35 d. $24.27

B

The two basic types of life insurance policies are:

B. Term and Permanent Whole Life

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.

Bank B for the car loan and Bank B for the savings account

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.

Budgeting categories are exact, and gifts can fit into only one of them.

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

A couple is required by their lender to have a down payment of 20% of the purchase price of the home they want to buy. If the couple has saved $35,000, what is the most expensive home the couple can afford to buy? a. $63,000 b. $140,000 c. $175,000 d. $210,000

C

A family eats out at a restaurant and the total for their meals is $73.89. They also pay sales tax of 5.8% and leave a tip for their server. If the family leaves a total of $93, which of the following might be a description of the service they received? a. They left a 10% tip, so the service was probably below average. b. They left a 15% tip, so the service was probably average. c. They left a 20% tip, so the service was probably above average. d. They left a 25% tip, so the service was probably outstanding.

C

A lawnmower costs $284, and the six-year extended warranty on the lawnmower costs 17% as much as the lawnmower itself. What is the effective price per year of the extended warranty? a. $4.82 b. $3.93 c. $8.05 d. $7.03

C

A lender estimates that the closing costs on a $165,000 home loan will be $6,187.50. The actual closing costs were 3.5% of the loan amount. Determine if the closing costs were higher or lower than the estimate and by what percent? a. higher by 0.25% b. higher by 0.5% c. lower by 0.25% d. lower by 0.5%

C

A lender estimates the closing costs on a home loan of $50,000 as listed below. If the lender's good faith estimates are accurate, are they a reasonable amount for closing costs? Why or why not? a. Yes, because the lender esitmated 3.08% of the home loan in closing costs which falls between 3 - 5%. b. Yes, because the lender estimated 4.6% of the home loan in closing costs which does not fall between 3 - 5%. c. No, because the lender estimated 6.2% of the home loan in closing costs which does not fall between 3 - 5%. d. No, because the lender estimated 17.7% of the home loan in closing costs which does fall between 3 - 5%.

C

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

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

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 appliance store is having a liquidation where everything in the store is 70% off the regular price. What is the price of a dishwasher that is regularly $519.89? a. $36.39 b. $70.00 c. $155.97 d. $363.92

C

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

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

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

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

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. Using the table, find the difference in total premium costs over 20 years for this policy at the two age levels.

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

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

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

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: Anna gets an overdraft fee if her balance at the end of the day is negative. On which day or days does Anna get charged an overdraft fee? I. Wednesday II. Thursday III. Friday a. I only b. I and II c. II and III d. III only

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

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

C

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

C

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

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

Bob's employer covers 23% of his family's annual health insurance premium. The balance of the premium is deducted in equal amounts from Bob's paycheck 26 times over the calendar year. If $185.30 is withheld from each of Bob's paychecks, what is his family's annual health insurance premium? a. $805.65 b. $4,817.80 c. $6,256.88 d. $20,946.96

C

Bonds from the city of Tavel Gorge worth $1,000 each are selling at 110.611. If Sean wishes to purchase three such bonds, how much can he expect to pay? a. $3,000.00 b. $3,331.83 c. $3,318.33 d. $331.83

C

Brenda has an associate's degree earning the median salary. She wants to quit working and go to college to get just a basic bachelor's degree. If she completes her degree in 2 years and it costs $15,000, how long will it take her to recover her investment assuming that she earns the median salary?

C

Brenda has money invested in Esti Transport. She owns two par value $1,000 bonds issued by Esti Transport, which currently sells bonds at a market rate of 101.345. She also owns 116 shares of Esti Transport stock, currently selling for $15.22 per share. If, when Brenda made her initial investments, Esti Transport bonds had a market rate of 96.562 and Esti Transport stock had a share price of $13.40, which side of Brenda's investment has gained a greater percent return, and how much greater is it? a. The bonds showed a return that was 4.78 percentage points higher than that of the stocks. b. The bonds showed a return that was 4.95 percentage points higher than that of the stocks. c. The stocks showed a return that was 8.63 percentage points higher than that of the bonds. d. The stocks showed a return that was 3.58 percentage points higher than that of the bonds.

C

Broker P charges a commission of $8.50 for every ten shares of stock, and Broker Q charges a fee of $65.00 for every thousand dollars bought or sold. If stock in Ergar Appliances costs $18.75 per share and you buy 500 shares, which broker is the better deal, and by how much? a. Broker Q will charge $375.35 less than Broker P. b. Broker Q will charge $160.22 less than Broker P. c. Broker P will charge $184.38 less than Broker Q. d. Broker P will charge $425.00 less than Broker Q.

C

Buying a car is an example of _____. a. An immediate goal b. A long term goal c. A short term goal d. A liquid goal

C

Calculate 7.25% tax on $1,540. a. $11.17 b. $109.34 c. $111.65 d. $113.96

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

Catherine bought 355 shares of Trochel Office Supplies at $31.29 per share. Several months later, the price went up and she sold them at $49.88 per share. How much profit did Catherine make? a. $28,815.35 b. $17,707.40 c. $6,599.45 d. $11,107.95

C

Choose the circumstances in which a debit card can be used. I. Point-of-sales transactions II. ATM withdrawals a. I only b. II only c. I and II d. Neither I, nor II

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

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

C

Cindy would like to lease a car worth $56,000 for a three-year period. The leasing company told Cindy that after three years, the car would have a residual value of $40,320. How much of the car's original value will Cindy have to pay off during her three-year lease?

C

Cindy's apartment complex is offering renters insurance through their insurance company. The insurance company charges an annual premium of $565.00 which can be paid in equal payments throughout the year with her monthly rent. Cindy's monthly rent is currently $789.00. What will Cindy's new rent be if she includes the renters insurance? a. $47.08 b. $630.75 c. $836.08 d. $1,354.00

C

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

C

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

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

Curtis just recieved a raise at work increasing his salary by $8,500. He knows that an increase in salary will increase the amount of federal income taxes withheld from his paycheck. Which of the following statement best describes the effect his raise will have on state income tax withholdings? a. State income tax is unrelated to federal, he will see no change in his state withholding. b. Since he is having more withheld for federal, he will have less withheld for state so that he pays the same amount in the end. c. State income tax is usually a set percentage of federal income tax. With an increase in federal he will see an increase in state withholding. d. Since he is making more money, the state government will take advantage of his raise and charge him more income tax. His state withholding will increase.

C

DeShawn is 38 years old and is married with 3 children, ages 2, 4, and 6. He makes $45,000 a year and is planning to retire when he turns 60. From the following three options, DeShawn decides to buy the $900,000 20 year term policy. Given DeShawn's scenario, assess whether DeShawn made a wise decision.

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

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

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

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

C

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

Four years ago, Sam invested in Grath Oil. She bought three of its $1,000 par value bonds at a market price of 93.938 and with an annual coupon rate of 6.5%. She also bought 450 shares of Grath Oil stock at $44.11, which has paid an annual dividend of $3.10 for each of the last ten years. Today, Grath Oil bonds have a market rate of 98.866 and Grath Oil stock sells for $45.55 per share. Use the scenario above to consider which statement best describes the relative risk between investing in stocks and bonds. a. It is equally likely that the company would suspend paying interest on the bonds and dividends on the stock. b. Both the coupon rate and the dividend rate are fixed and cannot change. c. The market price of the bonds is more stable than the price of the company's stock. d. The amount of money received annually in interest (on the bonds) and in dividends (on the stocks) depends on the current market prices.

C

Gareth has $2,000 to invest. Putting the money in a savings account at his local bank will earn him 2.2% annual interest and gives him the ability to make ATM withdrawals from that bank's ATMs. Putting the money in an online savings account will earn him 4.85% annual interest, but he will be charged $3 every time he makes an ATM withdrawal. Assuming that Gareth's ATM withdrawals do not affect the amount of interest he earns, roughly how many ATM withdrawals must Gareth make every year for the local savings account to be a better deal than the online savings account? a. 8 b. 14 c. 18 d. 25

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

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

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

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 at the end of a three-year lease for his car. His leasing company says that his car is currently worth $12,780, a 72% residual value. Determine the original MSRP of Henry's leased car.

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 does the average monthly utility bill of Orlando, FL compare with the average monthly utility bill of Indianapolis, IN? a. The average monthly utility bill for Indianapolis, IN is $88.72 more than Orlando, FL. b. The average monthly utility bill for Indianapolis, IN is $85.33 more than Orlando, FL. c. The average monthly utility bill for Orlando, FL is $85.33 more than Indianapolis, IN. d. The average monthly utility bill for Orlando, FL is $88.72 more than Indianapolis, IN.

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 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

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

If 20% of all manually filed returns contain errors, and 0.05% of all electronically filed returns contain errors, how much more likely is a manual filer to make an error than an electronic filer? a. 40,000 times more likely b. 4,000 times more likely c. 400 times more likely d. 40 times more likely

C

If an item tends to be very expensive to repair, how might that affect your decision to purchase a warranty for it? a. If an item is very expensive to repair, it is probably easier to buy a new one than to repair it, so a warranty is probably not worth it. b. The price of a warranty is based on the price of the repairs, so a warranty might not be a good idea. c. Buying an extended warranty might be a good idea so that you do not have to repair the item yourself. d. Buying a limited warranty might be a good idea because limited warranties sometimes do not deal with repairs, meaning that you will not have to handle these expensive repairs.

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 the NCUA charges 6.3 cents per 100 dollars insured and Credit Union L pays $8,445 in NCUA insurance premiums, approximately how much is in Credit Union L's insured deposits? a. $1.2 million b. $5.3 million c. $13.4 million d. $20.6 million

C

If the purchase price for a house is $309,900, what is the monthly payment if you put 20% down for a 30 year loan with a fixed rate of 6%? a. $729.98 b. $912.48 c. $1,486.41 d. $1,858.01

C

In America, a person uses about 100 gallons of water each day, which is equal to 1,600 water-filled drinking glasses. How many water-filled drinking glasses would 281 Americans fill in a weeks time? a. 449,600 water-filled glasses b. 28,100 water-filled glasses c. 3,147,200 water-filled glasses d. 196,700 water-filled glasses

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

Jim wants to start investing in bonds. He checks with two brokers to ask them for suggestions of bonds to buy. Broker J, who charges a commission of 3.6% of the market value of all bonds sold, recommends for Jim to buy three par value $500 bonds from the city of Danville, a par value $1,000 bond from Raxin Accounting, and two par value $1,000 bonds from United Rotators. Danville bonds are selling at 114.212, Raxin Accounting bonds are selling at 79.941, and United Rotators bonds are selling at 102.844. Broker K, who charges a fee of $28 for each bond sold, recommends that Jim buy five par value $500 bonds from Fort Bend County, a par value $1,000 bond from the U.S. Treasury, and two par value $500 bonds from Iwad Records. Fort Bend bonds are selling at 91.090, Treasury bonds are selling at 101.163, and Iwad Records bonds are selling at 107.252. Based on the current information, which broker's bond package will cost Jim less money up front, and how much less will it cost him? a. Broker J's suggestion will cost Jim $59.57 less than Broker K's suggestion. b. Broker J's suggestion will cost Jim $62.00 less than Broker K's suggestion. c. Broker K's suggestion will cost Jim $148.57 less than Broker J's suggestion. d. Broker K's suggestion will cost Jim $208.07 less than Broker J's suggestion.

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

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

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

Latisha found an apartment that she wants to rent. The rent is $675 per month and there is a security deposit of $325. To move in, Latisha must have first months rent, last months rent and the security deposit. How much does Latisha need to move in? a. $1,000 b. $1,325 c. $1,675 d. $2,000

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

Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?

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

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

C

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

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

Mandy has an annual salary of $37,580. Each month she has a car payment of $265 and a student loan of $120. If she applies for a home loan, how likely is it Mandy will be approved based on her debt-to-income ratio? a. Very likely; recurring debt is less than what is allowed. b. Somewhat likely; recurring debt is equal to what is allowed. c. Not likely; recurring debt is higher than what is allowed. d. There is not enough information given to determine the answer.

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

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

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

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

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

C

Marquet is relocating to an area where she will be attending college. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in cost of $1,350 and monthly payment of $795. Buy: Move-in cost of $8,235 and monthly payments of $750. Marquet plans to stay in the area for the 5 years it will take her to get a graduate degree, so she decides to buy. Choose the best evaluation of Marquet's decision. a. Since the costs would be the same over the 5 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 5 year period as long as she doesn't have major repairs to make. c. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 5 year period. d. There is not enough information given to determine which option is best.

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

Miguel wants to buy a condominium. He has the choice of buying it now or renting it with the option to buy at the end of 3 years. If he buys it now, it will cost him $6,000 to close and his mortgage payment will be $726 per month. If he rents, he must pay a move-in cost of one months rent and a security deposit of $2,000. Miguel decides to rent because it is the cheapest option over the first 3 years. To the nearest dollar, what is the maximum amount of monthly rent payment he could pay? a. $670 b. $782 c. $814 d. $837

C

Mika wants to buy a condominium. He has the choice of buying it now or renting it with the option to buy at the end of 3 years. If he buys now, he could put $0 down, but he must pay closing costs of $7,100. His monthly mortgage payment will be $675. Mika decides to rent instead of buy because it is the cheapest option over the first 3 years. His move-in costs are one month's rent and a $750 security deposit.To the nearest dollar, what is the maximum amount of monthly rent payment he could pay? a. $636 b. $654 c. $828 d. $851

C

Mika wants to buy a condominium. He has the choice of buying it now or renting it with the option to buy at the end of 3 years. If he buys now, he could put $0 down, but he must pay closing costs of $7,100. His monthly mortgage payment will be $675. Mika decides to rent instead of buy because it is the cheapest option over the first 3 years. His move-in costs are one months rent and a $750 security deposit.To the nearest dollar, what is the maximum amount of monthly rent payment he could pay? a. $636 b. $654 c. $828 d. $851

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

Mr. Thom makes $25,900/year salary as a document processor. He has made the following chart in order to divide his weekly paycheck into his accounts: Unfortunately, he has made a mistake in adding the numbers and has not allocated all of the paycheck. If he deposits the difference into the two emergency savings accounts, how much total per week can he then put towards emergency savings? a. $40 b. $60 c. $74 d. $55

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

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

Mrs. Williams estimates that on average her family recycles 12.6 pounds of plastic each month. In a year's time, how much landfill space will Mrs. William's family save if 1 pound of plastic saves 7.4 yards of landfill space? a. 932.40 yards b. 93.24 yards c. 1,118.88 yards d. 7.77 yards

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

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

Neil decides to go to a technical college for 18 months to get a degree in computer networking. There are 6 school quarters in the program with a tuition of $530 each. Books for the entire program cost $1,800. How much will it cost Neil to get his degree? a. $3,180 b. $3,920 c. $4,980 d. $11,340

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

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

C

Norm has $15,000 to deposit. His daughter is a junior in high school and plans to go to college. Recommend the best way for Norm to store his money. Note that the interest rates are expressed on an annual basis. a. A four-year CD paying 4.8% interest, with a substantial penalty for early withdrawal b. An online savings account offering 2.3% interest c. A money market account paying 3.5% interest, renewable for three-month commitments d. A checking account with no monthly fees

C

Of the following, which factor or factors would make it more likely that buying an extended warranty is a good idea? I. The extended warranty overlaps with the manufacturer's warranty. II. The product has a high probability of needing repair in the next few years. III. The product is a major purchase that you are unlikely to soon replace. a. I and III b. II only c. II and III d. I, II, and III

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

Orlando invested $16,000 in an eight-year CD bearing 6.5% simple annual interest, but needed to withdraw $3,500 after five years. If the CD's penalty for early withdrawal was one year's worth of interest on the amount withdrawn, when the CD reached maturity, how much less money did Orlando earn total than if he had not made his early withdrawal? a. $227.50 b. $682.50 c. $910.00 d. $455.00

C

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

C

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

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

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

Rochelle plans to sell all of her shares when she can profit $6,250. What must the net asset value be in order for Rochelle to sell? a. $12.50 b. $31.44 c. $31.64 d. $100.00

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

Ron is 25 years old and is retiring at the age of 65. When he retires, he will need a monthly income of $4,123 for 20 years. If Ron contributes 10% of his monthly income to a 401(k) paying 5.5% compounded monthly, will he reach his goal for retirement given that his monthly income is 3,142.23? If he does not make his goal then state by what amount he will need to supplement his income. Round all answers to the nearest cent. a. Ron will meet his monthly goal of exactly $4,123 for retirement. b. Ron will meet his monthly goal of $4,123 for retirement with an excess of $125.34. c. Ron will not make his monthly goal of $4,123 and will need $359.74 to supplement his monthly income when he retires. d. Ron will not make his monthly goal of $4,123 and will need $450.61 to supplement his monthly income when he retires.

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

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

Samantha is trying to determine how she can save money by cutting her electricity bill. She is currently on a standard use plan for electricity and pays 8.5 cents per kWh. She keeps track of when she uses electricity and is thinking about switching to an interval use plan for electricity which costs 2 cents per kWh for off-peak use and 13 cents per kWh for on-peak use. Off-peak hours are from 8PM - 8AM and on-peak hours are from 8AM - 8PM. Below is the chart of her electricity usage: Samantha's Electricity Usage Per Month 1100 kWh between 8PM and 8AM 800 kWh between 8AM and 8PM Explain and justify which plan would best suit her needs. a. Samantha should not switch to the interval use plan, which would cost $126.00 more per month. b. Samantha should switch to the interval use plan, which would save her $126.00 per month. c. Samantha should switch to the interval use plan, which would save her $35.50 per month. d. Samantha should not switch to the interval use plan, which would cost $35.50 more per month.

C

Say a certain service industry has 78.9 thousand jobs in 2003, but expects to increase at an average annual rate of 2.65 thousand jobs yearly from 2003 to 2013. If this holds true, what will be this industry's percent increase from 2003 to 2013? a. 28% b. 30% c. 33% d. 40%

C

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

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

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

C

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

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

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

Stephen used a reconciliation worksheet, but his checkbook balance does not match the final worksheet balance. Evaluate the following list of possible errors that he has made. Decide which items could potentially correct this problem if found and corrected. Choose the option below that correctly describes the items that could have caused this problem with Stephen's reconciliation. a. I, III, IV, and V could cause the problem, but not II. b. I, II, III, and V could cause the problem, but not IV. c. All five of the potential errors could cause this sort of problem. d. I and II could cause the problem since there are no math errors.

C

Stock in Globin Publishing costs $8.72 per share. Mary buys 105 shares of Globin Publishing, and her broker charges a commission of $348. How much did Mary pay for the stock? a. $468.41 b. $915.60 c. $1,263.60 d. $3,139.56

C

Stock in Trochel Office Supplies trades at $72.40 per share and pays a yearly dividend of $6.92 per share. If David owns stock in Trochel Office Supplies worth $6,443.60, how much does he get paid in yearly dividends? a. $678.16 b. $931.16 c. $615.88 d. $560.52

C

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.

C

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the following options: $50/100,000 limit for bodily injury, $25,000 limit for property damage, $250 deductible for collision, and $50 deductible for comprehensive. Which of the following changes would increase Susie's limits the most without increasing her monthly premium by more than $5.00?

C

Tara and Levi are trying to decide between homeowners insurance policies offered by two different agencies. AAA Insurance has offered to insure their home for an annual premium of $0.38 per $100 with a $500 deductible. Thompson's Insurance has offered to insure the same home for an annual premium of $0.26 per $100 with an deductible of $1,000.

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 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 climate in which Jonah lives is mild all year long except during the hotter summer months. For 3 months out of the year, Jonah needs to use 4 portable fans to cool his home. If the electricity to use one fan costs 1 cent per hour and each fan is on for about 96 hours per month, what is his total electricity cost for the fans during one year? a. $6.72 b. $3.84 c. $11.52 d. $2.88

C

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

C

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

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

There is a correlation between higher education and greater degrees of both income and job stability. What is one downside of continuing education that might cause someone to choose not to seek a higher level of education despite the benefits? a. If you have too much income, you will reach your goals too quickly. b. Most employers feel that pursuing a college degree shows a lack of decisiveness or conviction compared to diving straight into the workforce. c. Higher education can be expensive, and most students who seek degrees must accept some burden of debt. d. Getting a degree in one subject can disqualify you from getting a job in another field.

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

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

Tom is considering making changes to his policy to make insurance more affordable. Which of the following statements is not something Tom should consider when making changes to his policy? a. Increasing the deductible on collision insurance will reduce his overall monthly and annual expense, but will lead to more out-of-pocket expense if he is in a collision. b. Removing comprehensive insurance will reduce his overall expense, but will leave Tom entirely responsible for the cost of a new windshield if he hits a rock on the highway. c. Increasing the limits on his bodily injury insurance will reduce his overall expense by putting greater limits on how much the insurance company will pay for injuries. d. Removing property damage insurance will reduce his overall expense, but will leave Tom responsible for the cost of repairs to any other cars involved with Tom in a collision.

C

Trevor buys 80 shares of Upton Group and 70 shares of TJH Small-Cap. What is Trevor's total investment? a. $2,687.90 b. $2,768.00 c. $2,850.30 d. $2,957.60

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

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

Two friends decide to rent an apartment and split the cost evenly. They each paid $575 towards the total move in cost of first and last month's rent and a security deposit. If the apartment cost $325 per month to rent, how much was the security deposit? a. $125 b. $250 c. $500 d. $825

C

Two friends decide to rent an apartment and split the cost evenly. They each paid $575 towards the total move in cost of first and last months rent and a security deposit. If the apartment cost $325 per month to rent, how much was the security deposit? a. $125 b. $250 c. $500 d. $825

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

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

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

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

C

Using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual salary of $73,025? a. $2,190.75 b. $2,044.70 c. $1,703.92 d. $1,217.08

C

What can you do when the unit prices for two comparable items are listed using different units of measure? a. The secondary units don't affect the cost. As long as both prices are in dollars or cents, you can compare the two. b. The unit prices are based on the cost of the whole package, so divide each base cost by each unit price to get comparable units. c. Use conversion rates to change one unit into the other unit, so that both prices are listed using like units. d. Unit prices are ratios, so you can add the two prices together and divide by the smaller unit price to get a usable number.

C

What is the SEC? a. The largest stock exchange in North America b. The margin of profit you gain from stock c. The government agency which oversees the trading of stock d. The total worth of your stock portfolio

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

What was the price of SFT Legal yesterday? a. $47.17 b. $56.11 c. $50.37 d. $61.85

C

Which is a step in the process of calculating successive discounts of 8% and 10% on a $50 item? a. take 2% of $50 b. take 8% of $46 c. take 10% of $46 d. take 18% of $50

C

Which kind of bond pays interest which is exempt from tax? a. Treasury Bonds b. Junk Bonds c. Municipal Bonds d. Corporate Bonds

C

Which legally required form divulges information about financial advisors? a. Form DAV b. Form AVD c. Form ADV d. Form DVA

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

C

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

C

Which of the following 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 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 a cost homeowners insurance does not protect? a. The cost of repair or replacement of a home lost in a natural disaster. b. Additional living expenses required while your home is repaired after a disaster. c. Replacement costs for all contents in your home, including high cost electronics. d. The cost of medical expenses incurred by somebody getting injured on your property.

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

C

Which of the following is not a typical cost associated with renting? a. last months rent b. pet deposit c. property tax d. security deposit

C

Which of the following is not true about a loan discount point? a. A point is purchased at the time of closing. b. A point is purchased for 1% of the loan amount. c. A point reduces the interest rate by 1%. d. A point bought will reduce the monthly mortgage payment.

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

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

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

Which of the following statements is true? a. A 30 year fixed mortgage will always result in the lowest payment. b. You must have at least a 20% down payment to get a competitive interest rate. c. The lower your interest rate is, the lower your monthly payments are. d. The faster you pay off your mortgage, the lower your monthly payments are.

C

Why does the government issue only bonds, while companies issue both stocks and bonds? a. The US government does not involve itself in the stock market because it does not want to risk losing money if there should ever be a crash in the stock market. b. Because the stock market is used as a form of gambling, the government refuses to associated itself with the stock market as a way to discourage gambling. c. Stock in a company gives the holder part-ownership of the company, with voting rights on big decisions, and profits when the value goes up. The people already vote on happenings in the government and inherently have ownership of the government. d. A stock is a part ownership in a company, and the leaders of the government won't have the people owning the government.

C

Why is a larger down payment beneficial to a home investor? a. A larger down payment would only be beneficial to an investor if they intended on renting out the house. b. A larger down payment would enable an investor to get a loan with a higher interest rate and lower monthly payments. c. A larger down payment would enable an investor to get a loan with a lower interest rate and lower monthly payments. d. A larger down payment is essentially a larger bribe to the lending institution and gets the investor in their good favor.

C

Why would a Roth 401(k) investment plan allow you to invest the most amount of money? a. The federal government subsidizes a portion of a Roth 401(k) to help people in lower tax brackets save for retirement. b. Roth 401(k) plans are reserved for administrators and executives, who have a higher income which would allow them to invest more. c. A Roth 401(k) plan takes money after tax has been removed from gross income, and has a contribution limit, but withdrawal is tax free. d. The contribution limit of a Roth 401(k) plan is more than double the limit of the traditional 401(k).

C

Wilma buys a new game that is priced $43.89. She gets successive discounts of 15% followed by 5% off on the game. The purchase price of Wilma's game is _____ of the original price. a. 79.5% b. 80% c. 80.75% d. 82%

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?

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

C

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 $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 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 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

You work for a lender that requires a 15% down payment and uses the standard debt-to-income ratio to determine a person?s eligibility for a home loan. Of the following, choose the person that you would rate the highest on their eligibility for a home loan. Person A Person B Person C Person D home value $95,000 $107,000 $120,000 $128,000 income $46,000 $53,000 $58,000 $60,000 savings $20,000 $13,910 $18,000 $19,200 recurring debt $310 $198 $265 $400 a. Person A b. Person B c. Person C d. Person D

C

Mr. Henderson's annual premium of $4,668 is covered entirely by his employer along with 25% of the $9,264 premium for his wife and kids. How much of the Henderson family's annual premium is being paid for by Mr. Henderson's employer?

C .

Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may take now and the premium for the same policy taken out at age 45. Using the table, find the difference in total premium costs over 20 years for this policy at the two age levels.

C. $12,875

Jacob wants to buy a $500,000 15-year term life policy, and the annual premium rate (per $1000 of face value) for his age group is $6.78. If Jacob lives until the end of the term of his policy, how much will Jacob have paid in premiums overall?

C. $50,850

Auto insurance options offered by AA Auto Insurance are outlined in the table below. What monthly payment would you expect for an insurance policy through AA Auto Insurance with the following options? Bodily Injury: $25/50,000 Property Damage: $25,000 Collision: $250 deductible Comprehensive: $100 deductible

C. $54.85

You're 35 years old now, and you want to purchase life insurance which will cover your spouse for your lost income in the event of your death. You want this policy to last until what would be your normal retirement age of 65. Based on the given information, what is the best policy to buy?

C. 30-year term policy

DeShawn is 38 years old and is married with 3 children, ages 2, 4, and 6. He makes $45,000 a year and is planning to retire when he turns 60. From the following three options, DeShawn decides to buy the $900,000 20 year term policy. Given DeShawn's scenario, assess whether DeShawn made a wise decision.

C. DeShawn's current policy will cover his family for an adequate period of time at his current salary.

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.

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: 2.75 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.

Theresa has $708 in her account and wishes to throw a party. She plans to include the following: Purchase Cost ($) Decorations 76.92 Catering 150.66 Musicians 242.15 Refreshments 123.36 Venue 260.47 When Theresa makes the calculations, she finds that she cannot afford everything that she would like to have. What is the cheapest aspect of the party that she can eliminate to keep from overdrawing her account?

Catering

In order to make premiums more affordable for their customers, Leroux Health Insurance is considering some changes to one of the plans they offer. Both the current options and proposed changes are outlined in the charts below. If Kevin is currently insured under Leroux for his medical insurance under Plan A, how will the proposed changes affect his health care costs?

Costs for regularly scheduled health care will go down, but Kevin may end up paying more if he finds himself seriously ill or injured.

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

D

A combination washer/dryer costs $1,179. New parts for this washer/dryer cost $211, labor to repair it costs $553, and shipping it to and from a repair center costs $152. A full warranty, which covers all aspects of repairing the washer/dryer, costs 30% of the price of the washer/dryer. A limited warranty, which only covers labor costs, only costs 14% of the price of the washer/dryer. Assuming that the washer/dryer needs repairs which include parts, labor, and shipping, which warranty is the better deal, and by how much, rounded to the nearest dollar? a. The limited warranty will end up costing the consumer $189 less. b. The limited warranty will end up costing the consumer $363 less. c. The full warranty will end up costing the consumer $553 less. d. The full warranty will end up costing the consumer $174 less.

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 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

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

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

An investor buys 400 shares of stock in a fund when the net asset value is $19.62 and the offer price is $19.84. The investor sells these shares when the net asset value is $43.19 and the offer price is $43.56. Determine the amount of profit the investor earns. a. $9,576 b. $9,488 c. $9,428 d. $9,340

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

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

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

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

D

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

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

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

D

Billy's employer pays for 65% of his annual health insurance premium. Billy has the rest deducted in equal amounts from his paycheck. If Billy has $105.73 withheld from his paychecks twice each month, how much does his employer contribute towards his health insurance on an annual basis? a. $683.18 b. $1,366.36 c. $2,356.27 d. $4,712.54

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

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $235,430. Use $106,800 for maximum taxable earnings. 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

Carmen buys 153 shares of Cawh Consolidated Banks, each of which pays a constant yearly dividend of $7.14. After six years, how much has Carmen received in dividends? a. $5,783.40 b. $1,820.70 c. $1,092.42 d. $6,554.52

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

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

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

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

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

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

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

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

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

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

Elly buys 75 shares of stock in a mutual fund for a total investment of $450. She sells 50 shares of her stock for total proceeds of $400. Determine if Elly made a profit or loss, and how much per share. a. loss of $0.67 per share b. loss of $2 per share c. profit of $0.67 per share d. profit of $2 per share

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

Five years ago, Benjamin invested in Parchar Special Effects. He purchased four par value $1,000 bonds from Parchar Special Effects at a market rate of 96.230. Each bond had an interest rate of 7.2%. Benjamin also purchased 200 shares of stock in the same company, each of which cost $19.08 and had a yearly dividend of $2.04. Today, bonds from Parchar Special Effects have a market rate of 104.595, and stock in Parchar Special Effects costs $22.62. If Benjamin liquidates his portfolio and sells all of his investments, which aspect of his investment will have yielded him a greater total profit, and how much greater is it? a. The bonds yielded $940.20 more in profits than the stocks. b. The bonds yielded $33.00 more in profits than the stocks. c. The stocks yielded $373.20 more in profits than the bonds. d. The stocks yielded $973.36 more in profits than the bonds.

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

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

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?

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

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

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?

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

How much annual income would you need to have if, using the 28/36 ratio, your maximum allowable recurring debt is $500? a. $21,430 b. $30,000 c. $62,500 d. $75,000

D

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

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 there is a positive correlation between number of years of education and the amount of vacation time, which of the following careers would you expect to have the most vacation time? a. police officer, associates degree b. accountant, bachelor's degree c. lawyer, master's degree d. pharmacist, docotorate degree

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

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

In addition to the following closing costs listed below, the buyer pays a realtor commission that is 3.5% of the loan amount. If the loan amount is $165,000, how much was paid at closing? a. $2,322 b. $2,899 c. $5,775 d. $8,097

D

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

D

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

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

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

Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer's monthly lease payment be?

D

Joshua is 25 years old and has a high risk job making $72,000 a year. The insurance company charges him an extra 20% on top of his premium rate because of his job. If Joshua wants a policy that will replace five years of his salary, what is the annual premium for the cheapest policy?

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

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

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

Keyon and two of his friends are going to rent a 3 bedroom apartment for $840 a month. The security deposit is $500 and the pet deposit is $265. In addition to the deposits, Keyon and his friends must pay first and last months rent. If they split the cost evenly, how much will each pay to move in? a. $535 b. $613 c. $727 d. $815

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

Krista and Nick put a down payment of 20% on the purchase of their house, and then financed $200,000. What was the purchase price of the house? a. $160,000 b. $220,000 c. $240,000 d. $250,000

D

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

D

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

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

D

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

D

Lauryn's wages were not as much as she had budgeted. How can her budget be modified so there will be a positive actual net income?

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

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

Liam has purchased a fee-for-service health insurance plan from Leroux Health Insurance. Plan A includes a $248.00 monthly premium and an annual deductible of $5,500.00 (not including co-pays). Liam is a fairly healthy young man. He visits his primary care physician three times a year on scheduled visits. He sees a chiropractic specialist every week to help with lower back pain. He has no current prescriptions that need refilling regularly. Assuming Liam maintains his regular visits with his primary care physician and his chiropractor, and avoids any trips to the emergency room or urgent care, how much will Liam pay in health care related fees this year?

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

Mark is looking for professional financial assistance. Mark has never invested before and is not quite sure where to start. He knows that he wants to build up investments for future projects such as retirement, but he is not sure how to navigate investment in light of his existing debts. Recommend an appropriate financial professional for Mark. a. Full-service broker b. Discount broker c. Accountant d. Financial planner

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

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

Matthew bought 4 new compact discs at $16.99 each and a carrying case for $35.89. He paid 8.75% sales tax on his purchases. If Matthew paid $112.42 total, determine if he paid the correct amount. a. Matthew paid $0.15 too little for his purchases. b. Matthew paid $0.16 too much for his purchases. c. Matthew paid $0.05 too much for his purchases. d. Matthew paid the correct amount for his purchases.

D

Matthew paid $779,000 for a ten-room apartment building nine years ago. The building has lost 2.7% of its value every year. Matthew keeps all of his rooms rented out continually, charging a monthly rent of $810 per room. Upkeep on the building costs Matthew $35,900 every year. If Matthew sells the building, what will his total profit be, to the nearest hundred dollars? a. $737,100 b. $551,700 c. $362,400 d. $381,600

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

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

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

D

Nastasha has a gross income of $66,429. She can make adjustments of $14,490 for business losses, $3,584 for business expenses, and $4,813 for contributions to her retirement plan. What is Nastasha's adjusted gross income? a. $109,971 b. $22,887 c. $72,522 d. $43,542

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

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

D

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

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

Oscar has elected to have 23% of his federal income tax withheld as state income tax. If $154.00 was withheld as federal income tax on his last paycheck, how much will be withheld from his paycheck for income tax in all? a. $35.42 b. $118.58 c. $177.00 d. $189.42

D

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

D

Rachel bought 1,500 shares of Cawh Consolidated Bank at a price of $24.85 each. As the price climbed, she sold off parts of her holdings. She sold off 250 shares at $28.32 apiece, she sold 800 of her shares at $33.60 apiece, and she sold off the remainder of her shares at $39.94 apiece. If Rachel's broker charges a commission of $65 per $1,000 of stock bought or sold, how much profit did Rachel make, to the nearest dollar? a. $20,459 b. $51,933 c. $14,661 d. $8,859

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

Rate the following bank accounts from most to least liquid: CD, savings account, checking account, money market account. a. CD, savings account, checking account, money market account b. Savings account, checking account, CD, money market account c. CD, money market account, savings account, checking account d. Checking account, savings account, money market account, CD

D

Ruby has a monthly salary of $1,800 and also earns 6% commission on her sales. If Ruby had $37,000 in sales last month, what were her total earnings for the month? a. $1,908 b. $2,220 c. $2,328 d. $4,020

D

Ryan works at the car wash making $5.30 per hour plus tips. Last week Ryan worked 32 hours and earned $403. How much in tips did Ryan make last week? a. $86.40 b. $148.00 c. $169.60 d. $233.40

D

Sally is near the end of a three year lease on a car with an original MSRP of $38,000. Her leasing company claims that the car is now worth only $28,500. Which percentage represents the residual value of Sally's leased car?

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

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

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

D

Sammy usually takes a 18 minute shower in the morning. If a 4 minute shower uses an average of 20-40 gallons of water, what is the maximum gallons of water that Sammy could be using in her shower? a. 72 gallons of water b. 360 gallons of water c. 90 gallons of water d. 180 gallons of water

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 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

Stan has made a $125.30 monthly deposit into an account that pays 1.5% interest, compounded monthly, for 35 years. He would now like to draw a monthly salary from the account. Determine the amount that Stan can withdraw each month for 20 years, if he plans on not having anything in the account at the end of the 20 year period and no future deposits are made to the account. a. $69,242.49 b. $69,159.05 c. $333.29 d. $333.71

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

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 Changs updated their bedroom by purchasing a new lamp for $89.95 and a comforter set for $239.99. They paid .066% sales tax on their purchases. If the Changs paid $351.72 total, determine if they paid the correct amount. a. The Changs family paid $0.33 too much for their purchases. b. The Changs family paid $0.99 too much for their purchases. c. The Changs family paid $5.94 too much for their purchases. d. The Changs family paid the correct amount for their purchases.

D

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

D

The extended warranty on a $960 dishwasher is 21% of the purchase price and lasts for eight years. What is the effective cost per year of the extended warranty? a. $28.80 b. $45.20 c. $23.78 d. $25.20

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

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

The stores below each have the same snowboard for an original price of $189.59. At which store can you get the snowboard for the lowest price? Store A: Sale of 30% off and a successive discount of 10% off. Store B: Sale of 20% off and a successive discount of 20% off. Store C: Sale of 40% off. a. All of the stores have the same discounted price. b. You can get the lowest price at Store A. c. You can get the lowest price at StoreB. d. You can get the lowest price at Store C.

D

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

D

Timothy periodically purchases bonds issued by Prince Waste Collection. Last year, he bought two bonds in February, two bonds in June, and one bond in August, then sold them all in October. Prince Waste Collection bonds were selling at 94.593 in February, 92.661 in June, 105.480 in August, and 102.882 in October. If each bond that Timothy bought had a par value of $1,000, how much profit did he make from buying and selling these bonds? a. $15.91 b. $34.42 c. $159.12 d. $344.22

D

Tina lives in a state that charges her 4.5% state income tax on her federal taxable income. If her federal taxable income is $61,600, how much does Tina pay in state income tax? a. $1,545 b. $227 c. $4,372 d. $2,772

D

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

D

Tomaso and three of his friends are splitting the cost to rent a house for $975 a month. The security deposit is $1,500 and there is a cleaning deposit of $325. They must pay first and last month's rent upon moving in.Tomaso has a cat, so he will pay an additional $150 pet deposit that his friends won't. Approximately how much will Tomaso pay to move in? Round your answer to the nearest dollar. a. $850 b. $944 c. $981 d. $1,094

D

Tomaso and three of his friends are splitting the cost to rent a house for $975 a month. The security deposit is $1,500 and there is a cleaning deposit of $325. They must pay first and last months rent upon moving in. Tomaso has a cat, so he will pay an additional $150 pet deposit that his friends won't. Approximately how much will Tomaso pay to move in? Round your answer to the nearest dollar. a. $850 b. $944 c. $981 d. $1,094

D

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

D

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

D

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

Wayne is planning to sell the twenty-room apartment building he bought fifteen years ago, for which he paid $759,000. The real estate market in his area has been falling since that time, and the property has decreased in value by 3.8% every year. Wayne rents each of his apartments for $495 per month, and upkeep on the building costs him $26,400 annually. Assuming that Wayne has kept his apartment complex constantly three-quarters full, what will his net profit or loss be when he sells the building, to the nearest hundred dollars? a. $61,500 loss b. $722,400 loss c. $168,000 profit d. $606,000 profit

D

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

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 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 difference between a full warranty and a limited warranty? a. A full warranty is a guarantee to replace a faulty product, while a limited warranty is a guarantee to repair a faulty product. b. A full warranty will pay for repairs any number of times that the product breaks, but a limited warranty will only pay a certain number of times. c. A limited warranty is only good for a certain length of time, but a full warranty is good forever. d. A full warranty will cover any repairs or replacement that the product needs, while a limited warranty will only pay for certain repairs.

D

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

D

When you are purchasing green cleaning products, which of the following informative information should not grab your attention? a. performance b. ingredients c. effects on health d. celebrity endorsements

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

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 are possible amounts for the third check and the cash that Cindy deposited? a. no cash and a $303.68 check b. $140.50 in cash and a $267.14 check c. $99.32 in cash and a $155.55 check d. $122.04 in cash and a $205.64 check

D

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

D

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

D

Which of the following 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 expressions shows how to calculate the unit price for a 28 ounce jar of spaghetti sauce priced at $2.89?

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 is a typical cost associated with renting? a. closing costs b. down payment c. property tax d. security deposit

D

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

D

Which of the following is an advantage of renting? a. ease of mobility b. economic gain c. financial risk d. tax savings

D

Which of the following is considered a purchase tax? a. income tax b. Social Security c. property tax d. excise tax

D

Which of the following is not a way health insurance helps to save you money? a. In many cases, your employer will pay a certain portion of your health insurance premium. b. Some health care plans have made arrangements with health care providers to offer their services at a lower rate. c. Many times, you only have to pay a deductible to receive goods or services. The remaining balances are paid by your insurer. d. Most health care plans set a portion of your premium aside in an escrow account so that you have money available in case of a medical emergency.

D

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

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

D

Which of the following statements explains the relationship between Social Security and Medicare taxes? a. Both Social Security and Medicare are applied to all wages up to the maximum taxable earnings. b. Both Social Security and Medicare are applied to all wages without limit. c. Medicare is applied to all wages up to the maximum taxable earnings. Social Security is applied to all wages without limit. d. Social Security is applied to all wages up to the maximum taxable earnings. Medicare is applied to all wages without limit.

D

Which of the following statements is true. I. The higher your interest rate, the higher your monthly mortgage payments. II. The higher your down payment, the higher your monthly mortgage payments. III. A 30 year mortgage fixed at 6% will have smaller payments that a 20 year mortgage fixed at 6%. a. I only b. II only c. I, II, and III d. I and III

D

Which of the following will not help Robert lower his homeowners insurance premium? a. Increase the deductible on his policy. b. Remove replacement cost from his policy. c. Reduce the number of riders on his policy. d. Increase the total coverage of his home on his policy.

D

Which of these can be considered "online banking?" I. A brick-and-mortar bank that allows its customers to transfer money online. II. A bank that has only a few branches but has customers depositing money online. III. A bank that does not exist as a real building, but only has an internet presence. a. I and II b. II and III c. III only d. I, II, and III

D

Which of these is not a disadvantage to writing checks. A. The account information given on the check can cause security issues. B. There are postage costs associated with mailing checks. C. There is a risk of overdrawing if one doesn't track their balance. D. Many companies do not accept checks.

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

Why are closing costs a one time fee? a. Payment of closing costs is required because it is a sign to the lending institution that the investor has every intention of making payments on time. b. If closing costs were paid over time, they would most likely be forgotten and never paid off. c. Most home buyers pay for their houses in full, and consequently pay for the closing costs in full as well. d. The closing costs cover titles, taxes, and realtor costs. After closing, the only monetary obligation is to the lending party.

D

Why is it important to a lending institution that a person present a 2-year job history when applying for a home loan? a. Most lending institutions have quotas for giving loans to people with certain careers. b. A job history helps the lender to get to know the people they are lending money to instead of lending to a complete stranger. c. Lending institutions have a high employee turnover rate and are always looking for new employees. d. It is important to present job history when applying for a loan because a bank or lender needs assurance of payment.

D

Why is simple interest useful for planning parts of your financial future? a. Simple interest can endure unforeseen economic changes by fluctuating. b. Simple interest generates more money than any other source of income. c. Simple interest grows more quickly if you invest in it longer. d. Simple interest is very regular and can be calculated in advance.

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

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

Your children are 3 and 5 years old now, and you want an inexpensive policy that covers your family at least until the youngest is 22. Based on the given information, what is the best policy to buy? a. Whole life policy b. 10-year term policy c. 15-year term policy d. 20-year term policy

D

Jeremy is 29 years old and in good health. What is the annual premium for the cheapest policy having a $90,000 face value that Jeremy can buy?

D. $1,643

Because Bernard has some health issues, he must pay 15% more for life insurance. About how much more annually will a $115,000 10-year term insurance at age 35 cost Bernard than someone of the same age without health issues?

D. $24

If you want to increase the amount of monthly savings in your budget, which of the following methods would reasonably be the most effective?

Determine a "Non-Essential Expense", or any other expense, that can be reduced.

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

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

F

Isabelle has $84.00 in her account on Sunday. Over the next week, she makes the following changes to her balance via deposits and purchases: Day Debit ($) Credit ($) Monday 22.35 --- Tuesday 47.60 10.29 Wednesday 15.44 --- Thursday 11.25 --- Friday 9.78 22.69 Saturday 30.54 18.86 On which day or days does Isabelle get charged an overdraft fee? I. Thursday II. Friday III. Saturday

I and III

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

II and III

What does it mean for a savings account to have a minimum balance?

If you do not keep at least that much money in the account, you will be assessed fees.

Income taxes

Income taxes are taxes on income levied by the government for both individuals and companies.

Patrick and Susie just welcomed a set of twins to their family and have to decide how to purchase health insurance for the babies. Patrick's employer pays for 100% of his monthly health insurance premium of $378, but will not pay for any of the $280 for each additional beneficiary. Susie's employer, who pays 63% of her $403 monthly premium, offers to pay 32% of the $310 monthly premium for each additional beneficiary. Which would be the most economical way to purchase health insurance for the family?

Insure Patrick with his employer and Susie and the twins with her employer.

How will the federal tax affect a gross biweekly pay of $740 for a single person claiming 1 exemption?

It decreases gross pay by $65.

A single person earns a gross biweekly salary of $840 and claims 5 exemptions. What is the person's net pay.

It is $13 less than the gross pay.

Jesse works for an engineering firm earning $54,000 per year. Jesse is 53 years old and plans on retiring at age 65. He?s considering working part-time so that he can work on another degree. His new degree would take him 3 years to earn and cost a total of $30,000. After getting the degree, Jesse will make $75,000 per year. Do you think that the new degree is worth the investment? Explain your reasoning.

Jesse will spend $111,000 to earn the degree: 3 years loss of 1/2 his salary + cost of education = 3(27,000) + 30,000 He will make $21,000 per year more after earning his degree, so it will take a little over 5 years to recover his investment. This means that he will work an additional 4 years making $21,000 more per year for a total of $84,000, so it seems like a wise investment.

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.

Which of the following is not a way health insurance helps to save you money?

Most health care plans set a portion of your premium aside in an escrow account so that you have money available in case of a medical emergency.

Gerald would like to add a dental and vision option to the health insurance plan he purchased through his employer. In addition to the 65% of Gerald's $345 monthly health insurance premium, his employer has offered to pay 50% of a $38 monthly dental premium and 75% of a $23 monthly vision premium. If Gerald adds both the dental and vision options to his insurance plan, how much will he pay each month towards health insurance?

NOT $260.50 because this is what the employer is paying Try: $145.50

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.

NOT $83.78

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

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

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

Gertrude takes out a $5,500 subsidized Stafford loan, which must be paid back in ten years. Gertrude will graduate four years after taking out the loan. If the loan has an interest rate of 6.8%, compounded monthly, and Gertrude makes monthly payments, how much interest will she pay by the time the loan is repaid? Round all dollar values to the nearest cent.

NOT a. $4,462.40 NOT b. $1,213.28

Maria took out an unsubsidized Stafford loan of $6,925 to pay for college. She plans to graduate in 4 years. The loan had a duration of ten years and an interest rate of 5.0%, compounded monthly. By the time Maria graduates, how much greater will the amount of interest capitalized be than the minimum amount that she could pay to prevent interest capitalization? Round all dollar values to the nearest cent.

NOT b. $1,384.00

The following table shows a portion of a four-year amortization schedule. 2007-10-05-00-00_files/i0060000.jpg After three years, how much of the principal has been paid off?

NOT b. $22,706.64

Miles and Nick each separately apply for and receive loans worth $5,000 apiece. Miles has a very good credit score, so his loan has an APR of 7.75%, compounded monthly. Nick's credit score is rather low, so his loan has an APR of 13.10% interest, compounded monthly. If both of them repay their loans over a four year period, making equal monthly payments based on their own loan, how much more will Nick have paid than Miles? (Round all dollar values to the nearest cent.)

NOT b. $267.50

Henry wants to avoid interest capitalization on his $7,800 unsubsidized Stafford loan. Henry will graduate in four years, and the loan has a duration of ten years. The loan has an interest rate of 5.6%, compounded monthly. How much must Henry pay every month to avoid interest capitalization?

NOT b. $43.68

Nicole used her credit card to buy a $1,255 mattress. Her credit card has an APR of 11.56%, compounded monthly, and the mattress was the only purchase on the card. Nicole paid off the mattress after two and a half years. If the sales tax in Nicole's area is 9.08%, how much interest did Nicole pay in total? (Round all dollar values to the nearest cent.)

NOT b. $456.20 NOT d. $327.86

The following section is a statement from the rental agreement Tim signed when he rented his car this past weekend. "Upon checkout, the fuel level of the vehicle will be determined by turning the vehicle on and visually inspecting the fuel gauge. The approximate fuel level will be recorded on the Check-Out sheet and verified with initials by the vehicle Renter. One copy of the Check-Out sheet will be given to the customer. Another copy will be kept with the on-site records of the vehicle. The rented vehicle must be returned with a minimum fuel level the same as that indicated on the Check-Out sheet. A vehicle returned with a fuel level less than the approximate level indicated on the Check-Out sheet will be completely refueled with on-site pumps. The price of the fuel used to refuel the vehicle will be added to the Renter's total charge at a cost of $4.50 per gallon plus a $5.00 re-fueling charge." As a part of the check-out process, it is customary for a car rental agency to look over the car with the customer and fill out the Check-Out sheet together. As Tim was walking around the car looking for damages that he didn't want to be held responsible for, the agency representative turned on the car, took note of the fuel level, and indicated it on the Check-Out sheet. Since Tim didn't have any questions, the clerk handed him the keys and a copy of the Check-Out sheet and wished him well.

NOT b. The representative failed to give Tim a copy of the Check-Out sheet.

Joey would like to apply for a loan but knows that his high debt-to-income (DTI) ratio will probably get in his way. He would like to lower his DTI ratio by lowering the amount of his gross monthly income that goes to living expenses. Joey's current monthly expenses include a rent payment of $1,100, a $178 car payment, and a combined minimum payment of $220 for his credit card debt. His current gross monthly income is $3,600. If Joey moves to a new apartment, what is the maximum monthly rent payment he can make and still maintain a DTI ratio of 36%?

NOT c. $922

Viola took out a $8,470 Stafford loan at the beginning of her four-year college career. The loan has a duration of ten years and an interest rate of 7.5%, compounded monthly. How much more will Viola's monthly payment be if the loan is unsubsidized than if the loan is subsidized? Round all dollar values to the nearest cent.

NOT c. $96.96

In forming a contract, the "meeting of the minds" is

NOT c. a phrase used to describe a verbal contract or a contract made without signatures from the parties involved.

Edgar has taken out a $6,250 unsubsidized Stafford loan to fund his four-year undergraduate degree. The loan has a duration of 10 years and an interest rate of 6.1%, compounded monthly. How much interest capitalization will have accrued by the time Edgar graduates? Round all dollar values to the nearest cent.

NOT d. $1,524.96

Charles is going to purchase a new car that has a list price of $21,450. He is planning on trading in his good-condition 2004 Dodge Neon and financing the rest of the cost over three years, paying monthly. His finance plan has an interest rate of 12.28%, compounded monthly. Charles will also be responsible for 6.88% sales tax, a $1,089 vehicle registration fee, and a $124 documentation fee. If the dealer gives Charles 80% of the listed trade-in price on his car, once the financing is paid off, what percent of the total amount paid will the interest be? (Consider the trade-in to be a reduction in the amount paid.)

NOT d. 12.86% NOT b. 15.67%

Suzanne has purchased a car with a list price of $23,860. She traded in her previous car, which was a Dodge in good condition, and financed the rest of the cost for five years at a rate of 11.62%, compounded monthly. The dealer gave her 85% of the listed trade-in price for her car. She was also responsible for 8.11% sales tax, a $1,695 vehicle registration fee, and a $228 documentation fee. If Suzanne makes a monthly payment of $455.96, which of the following was her original car?

NOT d. 2007 Dakota

The following statement is from the contract Peter signed with his Homeowners' Association (HOA). "Overnight parking on community streets is prohibited. For the purpose of this contract, 'overnight' will be defined as the hours between 11:00 p.m. and 4:00 a.m. The HOA will monitor overnight parking not less than once every calendar week with nightly patrols by community security. "In the event a car is found parked on community streets overnight and that ownership of the offending car can accurately be verified as a community homeowner, the homeowner will receive one (1) written warning asking him or her to correct the situation. A second and third infraction by the same homeowner, whether or not it is with the same car, will result in a monetary fine as permitted by CC&R guidelines and HOA bylaws. Further infractions (past 3) will result in monetary fines in addition to the towing of the car at the homeowner's expense." Peter just received a written warning from the HOA concerning the parking of his car overnight on a community street. Which of the following statements is true?

NOT d. Parking in the street overnight tonight will probably just get Peter another warning.

The following statement is from the contract Peter signed with his Homeowners' Association (HOA). "Overnight parking on community streets is prohibited. For the purpose of this contract, 'overnight' will be defined as the hours between 11:00 p.m. and 4:00 a.m. The HOA will monitor overnight parking not less than once every calendar week with nightly patrols by community security. "In the event a car is found parked on community streets overnight and that ownership of the offending car can accurately be verified as a community homeowner, the homeowner will receive one (1) written warning asking him or her to correct the situation. A second and third infraction by the same homeowner, whether or not it is with the same car, will result in a monetary fine as permitted by CC&R guidelines and HOA bylaws. Further infractions (past 3) will result in monetary fines in addition to the towing of the car at the homeowner's expense." After parking his car at 12:30 a.m. last night, Peter was approached by the on-duty neighborhood security guard. The guard told Peter that it was against established HOA rules to park overnight on community streets and reminded Peter that he had signed the contract agreeing to adhere to those rules. He then asked Peter to move the car onto his driveway and warned him that a second offense would result in a monetary fine. Which of the following facts invalidates the contract between Peter and the HOA?

NOT d. Peter parked in the street even though his driveway was empty.

The following statement is from a contract between a homeowner and the Homeowners' Association (HOA) for his neighborhood. "Overnight parking on community streets is prohibited. For the purpose of this contract, 'overnight' will be defined as the hours between 11:00 p.m. and 4:00 a.m. The HOA will monitor overnight parking not less than once every calendar week with nightly patrols by community security. "In the event a car is found parked on community streets overnight and that ownership of the offending car can accurately be verified as a community homeowner, the homeowner will receive one (1) written warning asking him or her to correct the situation. A second and third infraction by the same homeowner, whether or not it is with the same car, will result in a monetary fine as permitted by CC&R guidelines and HOA bylaws. Further infractions (past 3) will result in monetary fines in addition to the towing of the car at the homeowner's expense." According the contract, which of the following is not a responsibility of the HOA?

NOT d. tow the car of a homeowner who has parked in the street overnight five nights in a row

Which of the following is not a fee that affects the total cost of leasing a car?

NOT residual value of the car

Net worth

Net worth is the difference between assets and liabilities.

Sue's bank account has a balance of $899.83 before she starts spending money. She makes the following transactions: Transaction Cost ($) Rent 353.76 Video game 32.79 Bike maintenance 60.26 Jacket 55.62 Rug 80.40 Night out 35.77 Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this?

No, making that purchase will overdraw her account.

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.

Eva is 29 years old and has 2 children, ages 3 and 5. She makes $48,500 a year. Eva decides to buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards. To renew the policy the insurance company charges an extra 40% to her premium rate. Given the options below, assess whether Eva made a wise decision.

Not A. Eva would have been better off selecting the 20-year term policy.

Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan?

PPO insurance plans offer a wider choice of primary care doctors and specialists.

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.

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?

Paul can set up his studio and have $378 left over.

Stock

Putting money into a certain company in hopes to make a profit.

Leroux Health Insurance is considering changing the options in one of their health care plans (Plan A) based on customer feedback that prescriptions and regular visits to the doctor are too expensive for the insured individual. How can Leroux reduce the costs of regular health care without driving up the price of their health care plan?

Reduce the co-pay amounts but increase the annual deductible so that the monthly premium can stay the same.

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.

Joanne has a goal of buying a townhome and saved for 5 years. She expected to have the down payment of $15,000 saved by now but unfortunately she is $2,000 short. Joanne is stressed and ready to give up. As her friend, what would you say to Joanne to convince her that she should not give up? Give her an option of how she might adjust her plan.

Since buying a home is a long term goal, Joanne has time to adjust her plan and still achieve her goal in a reasonable time frame. She has managed to save $15,000 in 5 years, which is an average of $3,000 per year. At this rate, Joanne could still buy her home within the year. She should stay positive and set a new goal for herself. If she is really motivated, she could even bring in some additional income so that she can get the extra money sooner.

Bear market

Stock prices decline steadily over a long period of time.

Bull market

Stock prices rise steadily over a long period of time.

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

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

T

What is the "Yield %" which sometimes appears in stock listings?

The % of the stock price offered as a dividend

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.

When considering whether or not to buy an extended warranty for a large purchase, what are some factors that you should consider?

The durations and coverage of the manufacturer's warranty, as well as whether or not the extended warranty overlaps with it, should be taken into consideration. The likelihood of the item needing repairs, as well as the cost of repairing it, should also be considered. Furthermore, it is helpful to consider the cost of the warranty, its relation to the cost of the item, and whether it is a full or limited warranty.

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.

Interest rate

The interest rate is the fee charged by the bank for the use of the money when taking out a loan. It is also the fee you are paid by the bank for letting the bank use your money.

net proceeds

The net proceed is the amount received after all costs are deducted from the transaction of an asset.

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.

Phillipe has two job offers as given below and really has no preference for either company. Compare the total compensations for the job offers and explain which job you think Phillipe should accept and why.

The total employment compensation for Company A is $75,300 and for Company B it is $75,000. If he chooses the job based on total employment compensation only, then he should choose Company A. Note that the $800 job expense is a reduction in the total compensation for Company A. Also, since there is only $300 difference in total compensation, he may want to choose based on other criteria, such as how many days vacation per year or how far it is to commute to work.

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.

The total is calculated incorrectly

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.

Unit price

The unit price of an item is the cost for each unit.

what does the SEC monitor

They monitor for what they consider suspicious trade and then they will try to investigate what it is

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?

Winnie should buy the 12 pound bags.

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.

Adam's bank account has a balance of $1213.69 before he starts spending money. He makes the following transactions: Transaction Cost ($) Car payment 260.16 Groceries 97.98 Parking ticket 75.00 DVD box set 115.35 Antique lamp 68.53 Suit 331.84 Adam is considering getting his car a new paint job. Doing so will have a total cost of $264.83. Can Adam afford this?

Yes, but doing so will clear out his account.

Corporate bonds from Dagofi Radar are selling at 88.354, bonds from Chambers Translation are selling at 112.894, and bonds from Essentia Inc. are selling at 96.262. If Roger wants to buy two bonds with a par value of $1,000 each from Dagofi Radar, five bonds with a par value of $500 each from Chambers Translation, and four bonds with a par value of $1,000 each from Essentia Inc., how much can he expect to spend? a. $8,439.91 b. $8,500.00 c. $2,975.10 d. $9,343.97

a

Theresa is buying a condo that costs $127,500. She has $8,300 in savings and earns $3,200 a month. Theresa would like to spend no more than 20% of her income on her mortgage payment. Which loan option would you recommend to Theresa? a. 30 year fixed, 6.5% down at a fixed rate of 5% b. 30 year FHA, 3.5% down at a fixed rate of 6.5% c. 30 year fixed, 5% down at a fixed rate of 6.25% d. 30 year fixed, 10% down at a fixed rate of 5.75%

a

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

a

what is a labor union

a group of people who work in the same or similar occupations organized fir the benefit of all employees in these occupations

job rotation

a job design in which employees are trained to do more than one specialized task

what is a compressed workweek

a work schedule that first the normal 40-hour workweek into less than 5 days

The following table shows the assets and liabilities of the Smith family in 2005 and 2009. Based on the table, which of the following is true?

a) From 2005 to 2009, both assets and liabilities decreased.

The amount of money invested in a retirement fund is an example of which of the following?

a) investment asset

Ellen purchased a dishwasher, which cost $315 before the 9.22% sales tax. She used the machine an average of 10 times per week for the next six years, at which point she replaced it. Each time she ran the dishwasher it cost her $0.09 for water and $0.13 for electricity. What was the lifetime cost of Ellen's dishwasher?

a. $1,030.44

The following table shows the first segment of a five-year amortization schedule. After one year of payments, how much has been paid to interest?

a. $1,100.42

Tamari has a monthly income of $4,250 and she wants to determine her monthly net income. She calculates that her fixed expenses are $1,955 and her variable expenses are 28% of her monthly income. How much is Tamari's monthly net income?

a. $1,105

If the purchase price for a house is $218,500, what is the monthly payment if you put 3.5% down for a 30 year loan with a fixed rate of 6.5%?

a. $1,332.73

Carlos took seven years to pay off his loan by making identical quarterly payments. The loan had a principal of $22,375 and 5.49% interest, compounded quarterly. Carlos paid a total of $28,821.67. How much did Carlos pay in service charges? Round all dollar values to the nearest cent.

a. $1,721.31

Horatio has taken out a $12,450 unsubsidized Stafford loan to pay for his four-year undergraduate education. The loan has an interest rate of 7.3%, compounded monthly, and a duration of ten years. Horatio will allow interest capitalization. Making monthly payments, how much interest will Horatio have paid in total by the time the loan is paid in full? Round all dollar values to the nearest cent.

a. $11,068.80

Charlene has a monthly salary of $3,410. With her present budget, Charlene has a net income that is 7% of her monthly salary. Charlene is going to reduce her net income by $125 each month and put this money towards paying down her debt. What will Charlene's new net income be?

a. $113.70

Bob would like to get his debt-to-income (DTI) ratio down to 36%. His current monthly expenses are outlined in the chart below. He would like to lower his DTI by paying off some of his credit card debt, lowering his combined minimum monthly credit card payment. What would Bob's minimum monthly credit card payment need to be in order to reach his DTI goal of 36%?

a. $175.80

Tamora has just graduated from college. When she entered college four years ago, she took out a $9,100 subsidized Stafford loan, which has a duration of ten years. The loan has an interest rate of 5.4%, compounded monthly. If Tamora makes monthly payments, how much interest will she have paid in total by the time the loan is paid off? Round all dollar values to the nearest cent.

a. $2,697.20

Say you take out a loan with a principal of $44,500. The interest rate is 13.11%, compounded monthly. If you make consistent monthly payments and pay off the loan over the course of six and a half years, how much interest will you have paid in total? Round dollar amounts to the nearest cent.

a. $21,849.92

Kevin is looking at two brands of washing machines. Between water and electricity, a Brand C washer uses about $0.65 per load, and a Brand D washer uses about $0.27 per load. Kevin averages about five loads of laundry per month. After one year, how much more would the utility costs for a Brand C washer be than the utility costs for a Brand D washer?

a. $22.80

The principal on Jan's loan was $4,700, but by the time she had paid it off after four years, the interest and principal totaled $5,388. If Jan made regular quarterly payments of $355 until the loan was paid off, how much did Jan pay for service charges?

a. $292

Tyler is planning to buy a new car. He intends to trade in his existing car, a 2002 Chrysler Sebring in good condition. Using the table below, estimate how much Tyler's car is worth. Chrysler Cars in Good Condition

a. $3,260

Dennis has just made the final monthly payment necessary for paying off his car financing. When he purchased the car three years ago, it had a list price of $23,878. Dennis traded in his good-condition 2001 Honda Odyssey and financed the rest of the cost at an interest rate of 11.82%, compounded monthly. The dealer gave Dennis 85% of the trade-in value of his car, listed below. Dennis was also responsible for paying 9.05% sales tax, a $1,474 vehicle registration fee, and a $225 documentation fee. All told, how much did Dennis pay in interest? (Round all dollar values to the nearest cent, and consider the trade-in to be a reduction in the amount paid.)

a. $3,919.77

Calculate the monthly lease payment for a 36-month lease on a car with a $29,000 MSRP, a 79% residual value, and a money factor of 0.00365.

a. $358.64

Jessica took out a Stafford loan worth $7,175 at the beginning of her six-year college career. The loan has a duration of ten years and an interest rate of 6.3%, compounded monthly. How much greater will Jessica's monthly payment be if the loan is unsubsidized than if the loan is subsidized? Round all dollar values to the nearest cent.

a. $36.98

Niki makes the same payment every two months to pay off his $61,600 loan. The loan has an interest rate of 9.84%, compounded every two months. If Niki pays off his loan after exactly eleven years, how much interest will he have paid in total? Round all dollar values to the nearest cent.

a. $39,695.48

Renee is going to buy a new car that has a list price of $19,675. She will be responsible for $1,420 in vehicle registration fees, $85 in documentation fees, and 8.92% sales tax. She plans to trade in her current car, a 2002 Buick LeSabre in good condition, and finance the rest of the cost over four years at an interest rate of 11.34%, compounded monthly. If the dealer gives Renee 85% of the listed trade-in value for her car, what will her monthly payment be? Round all dollar values to the nearest cent.

a. $521.96

Olivia has taken out a $13,100 unsubsidized Stafford loan to pay for her college education. She plans to graduate in four years. The loan has a duration of ten years and an interest rate of 7.6%, compounded monthly. By the time Olivia graduates, how much greater will the amount of interest capitalized be than the minimum amount that Olivia could pay to prevent interest capitalization? Round all dollar values to the nearest cent.

a. $654.45

Dana just finished paying off the $15,400 loan she took out four years ago. The loan had 6.68% interest, compounded monthly. If Dana paid a total of $18,321.60, how much did she pay in service charges?

a. $730.08

Sam would like to use his extensive stamp collection as collateral for a secured loan. Sam has documentation that says his stamp collection is worth $10,525.00. Sam's bank has a policy that permits loan officers to lend no more than 82.5% of the value of the collateral. What is the maximum loan amount Sam can get from his bank using his stamp collection as collateral?

a. $8,683.13

Determine the monthly payment of a loan for $3,000 at 7.5% interest compounded monthly for 36 months.

a. $93.32

Determine the money factor for a lease with an interest rate of 9%.

a. 0.00375

Suzanne has purchased a car with a list price of $23,860. She traded in her previous car, which was a Dodge in good condition, and financed the rest of the cost for five years at a rate of 11.62%, compounded monthly. The dealer gave her 85% of the listed trade-in price for her car. She was also responsible for 8.11% sales tax, a $1,695 vehicle registration fee, and a $228 documentation fee. If Suzanne makes a monthly payment of $455.96, which of the following was her original car? Dodge Cars in Good Condition

a. 2004 Intrepid

Theresa is buying a condo that costs $127,500. She has $8,300 in savings and earns $3,200 a month. Theresa would like to spend no more than 20% of her income on her mortgage payment. Which loan option would you recommend to Theresa?

a. 30 year fixed, 6.5% down at a fixed rate of 5%

Sophie did an anyonymous survey and collected her friends' credit scores. The scores she found are listed in the table below. What is the mean credit score in this group? (Round to the nearest whole point, if applicable.)

a. 698

Xavier is comparing the credit scores of people in his neighborhood. He compiled the scores he found into the table below. What is the median credit score in this group? (Round to the nearest whole point, if applicable.)

a. 776

A trade-in is most closely related to which of the following

a. A down payment, because it reduces the amount financed

A trade-in is most closely related to which of the following?

a. A down payment, because it reduces the amount financed.

Based on a $500 loan amount, rank the following companies from the lowest to highest annual percentage rate (APR).

a. A, B, C, D

Which of these statements is most accurate regarding mortgage payments through the life of your loan?

a. At the beginning of your loan, your payments are covering mostly interest. At the end of your loan, your payments are covering mostly principal.

Which of the following statements explains the difference between a lease and a loan?

a. At the end of a loan the car belongs to you, but at the end of a lease, the car still belongs to the lease company.

You are considering buying one of two brands of barbecue grills. Brand F costs $650 and will last for about fifteen years. Brand G costs $200 and will last for about five years, so you will need to buy three of them over the years to equal one Brand F grill. In either case, you plan to pay for the grill with your credit card, which has an interest rate of 13.01%, compounded monthly. You will pay off a Brand F grill in five years of monthly payments, and you will pay off a Brand G grill in three years of monthly payments. Assuming that you have no other purchases on your credit card, over a fifteen-year period, which kind of grill will be cheaper, and how much cheaper will it be? (Round all dollar values to the nearest cent.)

a. Brand G will end up costing $159.48 less than Brand F.

Robert is looking to buy a deep fryer. He has narrowed his search down to two models. The following table gives the details of the prices, cost per use in electricity and oil, and lifespan of the two models Robert is considering to purchase. Robert plans on using his deep fryer about eight times per month. After six years, which brand will have the lower lifetime cost, and by how much?

a. Brand P will be $118.26 cheaper than Brand Q.

If a person wanted to purchase his or her dream car, and keep it for many years, is leasing or buying the better option? Why?

a. Buying would be the better option because the overall cost would be less. After the car is paid off, the owner gets much more value from the car, having already paid it off.

Why is credit history such an important factor in being considered for a loan?

a. Credit history shows how responsible people are in making payments on time and their general ability to make monthly payments.

Why do interest rates on loans tend to be higher in a strong economy than in a weak one?

a. Credit markets increase in a strong economy, and with increased demand come increased prices.

Frank has four different credit cards, the balances and interest information of which are outlined in the table below. As Frank was developing a debt payment plan, Rick suggested that he pay off the credit cards beginning with the highest interest rate, working his way down. If Frank chooses to follow Rick's advice, in what order should Frank plan on paying off his credit cards?

a. D, A, C, B

Which of the following is likely to keep Harry from being approved for a loan?

a. Harry's debt-to-income is a stable 39%.

Natasha is a regional manager for a chain of supermarkets. She has been tasked with researching the weekly sales records of two branch locations over the past month, which she must present to her board of directors. She was able to assemble the relevant information in the table below, but it is scrambled and hard to read. Sales are listed in thousands of dollars.

a. I

Of the following statements, which one or ones describe actions harmful to your credit score? I. Owing a lot of money II. Having many lines of credit III. Making steady payments

a. I and II

RJ has two loans. Loan H has a nominal rate of 5.68%, compounded daily. Loan I has a nominal rate of 6.33%, compounded monthly. Which loan's effective rate had the greater increase, relative to its nominal rate, and how much greater is its increase than that of the other loan?

a. Loan I's increase was 0.03 percentage points greater than Loan H's.

Dahlia is trying to decide which bank she should use for a loan she wants to take out. In either case, the principal of the loan will be $19,450, and Dahlia will make monthly payments. Bank P offers a nine-year loan with an interest rate of 5.8%, compounded monthly, and assesses a service charge of $925.00. Bank Q offers a ten-year loan with an interest rate of 5.5%, compounded monthly, and assesses a service charge of $690.85. Which loan will have the greater total finance charge, and how much greater will it be? Round all dollar values to the nearest cent.

a. Loan Q's finance charge will be $83.73 greater than Loan P's.

Kay has decided to take out a $23,100 loan, and she wants to pay it back in quarterly installments. She has narrowed her options down to two banks. Bank V offers a six-year loan with an interest rate of 4.6%, compounded quarterly, and has a service charge of $822.45. Bank W offers an eight-year loan with an interest rate of 3.9%, compounded quarterly, and a service charge of $722.25. Which loan will have the greater total finance charge, and how much greater will it be? Round all dollar values to the nearest cent.

a. Loan W's finance charge will be $335.96 greater than Loan V's.

Ricky is taking out a personal loan for $12,000 to remodel his kitchen. He would like the lowest monthly payment possible, even if it means a bigger finance charge in the end. His bank has offered him a loan at 13% interest for 36 months or 12% interest for 60 months. Which of the following statements most accurately describes what Ricky should be thinking?

a. More payments with the 60 month loan will give him the lowest monthly payment.

Why is deferment an important aspect of student loans?

a. Most students are unable to make monthly payments while studying, so deferment allows them to focus on studying.

The following statement is from the contract Peter signed with his Homeowners' Association (HOA). "Overnight parking on community streets is prohibited. For the purpose of this contract, 'overnight' will be defined as the hours between 11:00 p.m. and 4:00 a.m. The HOA will monitor overnight parking not less than once every calendar week with nightly patrols by community security. "In the event a car is found parked on community streets overnight and that ownership of the offending car can accurately be verified as a community homeowner, the homeowner will receive one (1) written warning asking him or her to correct the situation. A second and third infraction by the same homeowner, whether or not it is with the same car, will result in a monetary fine as permitted by CC&R guidelines and HOA bylaws. Further infractions (past 3) will result in monetary fines in addition to the towing of the car at the homeowner's expense." Peter just received a written warning from the HOA concerning the parking of his car overnight on a community street. Which of the following statements is true?

a. Parking in the street overnight tonight may get Peter fined.

The following section is a statement from the rental agreement at a local auto rental agency. "Upon checkout, the fuel level of the vehicle will be determined by turning the vehicle on and visually inspecting the fuel gauge. The approximate fuel level will be recorded on the Check-Out sheet and verified with initials by the vehicle Renter. One copy of the Check-Out sheet will be given to the customer. Another copy will be kept with the on-site records of the vehicle. The rented vehicle must be returned with a minimum fuel level the same as that indicated on the Check-Out sheet. A vehicle returned with a fuel level less than the approximate level indicated on the Check-Out sheet will be completely refueled with on-site pumps. The price of the fuel used to refuel the vehicle will be added to the Renter's total charge at a cost of $4.50 per gallon plus a $5.00 re-fueling charge." According to the rental agreement, which is not a responsibility of the rental agency representative?

a. Refuel the vehicle before the Renter drives it away.

Janice needs a tree stump removed from her back yard. She has agreed to hire a local handyman named Steve to do the work. Janice wants Steve to completely remove the stump and any major root systems that may still exist, all for the price of $300. Steve offered to the job based on an hourly rate of $40.00 per hour. He estimated that the job would take between seven and eight hours for a rough estimate of $300.00. He wants to be sure that he gets paid more for his time if the job happens to take longer than expected. He also wants Janice to pay for the rental of any equipment he might need to accomplish the job in the time quoted. After the two discuss what was needed on each side, Janice writes up the following contract and asked Steve to sign. " I, Janice Stevenson, agree to pay Steve Jacobsen $300.00 for the complete removal of one tree stump and related root system from my back yard. (signed) Janice Stevenson" Which of the following is not a change Steve should make to the contract before he signs it?

a. Steve needs to increase the total cost from $300.00 to $500.00.

Tim needs a new car while he attends college in the United States for the next three years. The car he would like has a MSRP of $15,000. A local dealer can get him a 3-year loan with a 7% interest rate if Tim can give them a $1,500 down payment. The same dealer offers the same car to lease with a money factor of 0.00271 and a residual value of 75%. The lease requires an additional fee of $1,250 to cover Tim's security deposit and the acquisition and documentation fees for the car. Tim is looking to drive the car home with the smallest initial out-of-pocket cost. Which of the following statements is true?

a. The initial out-of-pocket cost is less for the lease.

When dealing with a loan, who benefits from compounding interest more frequently, and why?

a. The lender benefits, because the interest compounded increases further interest calculations.

Which of the following is not a way Ian Dicker claims a Business Intelligence Dashboard will help you to make good business decisions?

a. allowing five different methods with which to monitor your business

Judy needs to take out a personal loan for $2,500 for tuition assistance. Her bank has offered her one of the four loan packages outlined in the chart below. Determine which of the four loans will be cheapest for Judy in the long run. All interest rates are compounded monthly.

a. loan A

Craig is considering four loans. Loan L has a nominal rate of 8.254%, compounded daily. Loan M has a nominal rate of 8.474%, compounded weekly. Loan N has a nominal rate of 8.533%, compounded monthly. Loan O has a nominal rate of 8.604%, compounded yearly. Which of these loans will offer Craig the best effective interest rate?

a. loan L

Oliver is looking to go to college. His family does not have very much money, so he qualifies for need-based financial aid. Oliver needs to spend most of his time working at his full-time job, so he will only be able to take a few classes per semester. Oliver's parents have poor credit scores and cannot afford to take on any more debt. Based on Oliver's situation, recommend a federal loan which would be appropriate for him.

a. subsidized Stafford loan

In a secured loan, collateral is

a. valuable property that the borrower promises to give the lender in the event of default on the loan

when do you get overtime?

after working 40 hours

Amortization is the reduction of a debt over time by making periodic payments, of which, a portion of each payment goes towards the principal and the interest.

amortization

deductions

amounts subtracted from your gross pay

If the purchase price for a house is $345,000, what is the monthly payment if you put 10% down for a 30 year loan with a fixed rate of 6.375%? a. $1,569.27 b. $1,937.12 c. $2,152.35 d. $3,314.59

b

Jack is trying to determine how he can save money by cutting his electricity bill. He is currently on a standard use plan for electricity and pays 7.5 cents per kWh. He keeps track of when he uses electricity and is thinking about switching to an interval use plan for electricity which costs 3 cents per kWh for off-peak use and 15 cents per kWh for on-peak use. Off-peak hours are from 8PM - 8AM and on-peak hours are from 8AM - 8PM. Below is the chart of his electricity usage: Jack's Electricity Usage Per Month 1200 kWh between 8PM and 8AM 400 kWh between 8AM and 8PM Explain and justify which plan would best suit his needs. a. Jack should not switch to the interval use plan, which would cost $24 more per month. b. Jack should switch to the interval use plan, which would save him $24 per month. c. Jack should switch to the interval use plan, which would save him $96 per month. d. Jack should not switch to the interval use plan, which would cost $96 more per month.

b

Jodi is retiring at the age of 65. When she retires, she estimates that she will need a monthly income for 25 years. If Jodi starts with $328,133.32 in an account that pays 6.2% interest compounded monthly, approximately what monthly income will she be able to draw? a. $2,665 b. $2,154 c. $1,948 d. $1,094

b

Megan used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it does not. Friendly Bank Reconciliation Worksheet Amount 1. Enter the statement closing balance. $ 487 13 2. Enter the sum of any outstanding deposits or credits. $ 186 68 3. Add lines 1 and 2. $ 673 81 4. Enter the sum of any outstanding checks or debits. $ 174 01 5. Subtract line 4 from line 3. $ 499 80 6. Enter your checkbook balance. $ 362 60 Note: Lines 5 and 6 should be equal at the end of the reconciliation. Megan wants to first look for a single transaction that could have caused this problem with reconciliation. What is the amount of the transaction that Megan should look for in order to find a solution to the problem? a. $325.79 b. $137.20 c. $12.67 d. $313.20

b

Shauna wants to buy a house and plans to rent the apartment located in the basement for extra income. The house has a purchase price of $195,600 and she will make a 5% down payment. Shauna has qualified for a 30 year mortgage with a fixed rate of 5.875%. Approximately how much rent should she charge for the apartment in order to cover her monthly mortgage payment if she only wants to spend $400 a month of her own money? a. $300 b. $700 c. $1100 d. $1150

b

The Johnsons are buying a house that costs $210,000 and can afford a 20% down payment. If the Johnsons want the lowest monthly payment, which loan option would you recommend? a. 30 year FHA, 3.5% down at a fixed rate of 6.25% b. 30 year fixed, 20% down at a fixed rate of 6% c. 30 year fixed, 10% down at a fixed rate of 6% d. 15 year fixed, 20% down at a fixed rate 5.5%

b

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

b

Tyrell bought a house for $186,500. He has a 30 year mortgage with a fixed rate of 6.5%. Tyrell's monthly payments are $1,060.93. How much was Tyrell's down payment? a. $12,120 b. $18,650 c. $27,975 d. $37,300

b

Mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down.Which of the following is true?

b) Mary increased both assets and liabilities.

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

b) The Svensons' assets increased by $1,800.

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

b)Mikah's assets increased by $1,500.

In order to reduce their debt, the Johnsons sold some real estate property valued at $165,000 for $143,000. They paid off a loan balance of $100,000 and put the rest in savings. Which of the following is a true statement?

b)The Johnsons increased their liquid assets

Which of the following would be a good argument to lease rather than buy?

b. "I prefer the warranty that covers repair costs of a new car."

Jessica's credit card is on a 30-day billing cycle, and it computes finance charges using the adjusted balance method. The following table details Jessica's use of her credit card in the month of October.

b. $1,033.76

Rachel took out a personal loan for $4,500 with a monthly payment of $173.06 for 36 months. Determine the finance charge on Rachel's loan if she takes all 36 months to pay it off.

b. $1,730.16

If the purchase price for a house is $345,000, what is the monthly payment if you put 10% down for a 30 year loan with a fixed rate of 6.375%?

b. $1,937.12

Paul has an eight-year loan with a principal of $26,900. The loan has an interest rate of 8.18%, compounded quarterly. If Paul pays $1,527 in service charges and makes quarterly payments on his loan, what will his total finance charge be when the loan is repaid? Round all dollar values to the nearest cent.

b. $11,546.36

Yolanda's credit card has an APR of 16.22% and a billing cycle of 30 days. The table below shows her transactions with that credit card in the month of November. Date Amount ($) Transaction 11/1 857.14 Beginning balance 11/3 76.95 Purchase 11/10 50.00 Payment 11/24 43.19 Purchase Find Yolanda's finance charge in November using the previous balance method, the adjusted balance method, and the daily balance method. Among those three possible finance charges, what is the value of the one which is neither lowest nor highest?

b. $11.59

Calculate the monthly payment for a loan of $7,500 with an 11% interest rate compounded monthly over a period of 5 years.

b. $163.07

Tyrell bought a house for $186,500. He has a 30 year mortgage with a fixed rate of 6.5%. Tyrell's monthly payments are $1,060.93. How much was Tyrell's down payment?

b. $18,650

If the purchase price for a house is $445,500, what is the monthly payment if you put 5% down for a 30 year loan with a fixed rate of 6.25%?

b. $2,605.87

A company offering tax refund anticipation loans is trying to draw new customers. The company guarantees that the annual percentage rate on its loans is 39%. What fees would the company charge on a $1,200 loan if the term of the loan is 18 days? (Round to the nearest dollar).

b. $23

Brian took eight years to pay off his $71,900 loan. The loan had an interest rate of 8.16%, compounded quarterly. If Brian paid quarterly and made the same payment every time, how much was each payment that he made?

b. $3,081.54

Patrick has a credit card with an APR of 15.40% and a billing cycle of 30 days. The following table shows Patrick's credit card transactions in the month of August. Date Amount ($) Transaction 8/1 1,466.22 Beginning balance 8/6 28.48 Purchase 8/9 150.00 Payment 8/17 115.75 Payment 8/20 40.00 Purchase 8/22 31.76 Purchase How much greater will Patrick's August finance charge be if his credit card company computes finance charges using the previous balance method than if it computes finance charges using the adjusted balance method?

b. $3.41

Toby just graduated from four years of college. At the beginning of each year, he took out a Stafford loan with a principal of $6,125. Each loan had a duration of ten years and an interest rate of 5.3%, compounded monthly. All of the loans were subsidized. Toby plans to pay off each loan in monthly installments, starting from his graduation. What is the total lifetime cost for Toby to pay off his 4 loans? Round each loan's calculation to the nearest cent.

b. $31,616.16

Valerie is going to purchase a new car. The car she wants has a list price of $32,495. Valerie is planning to make a down payment of $1,877. Furthermore, she plans to trade in her current car, which is a 2006 Hyundai Sonata in good condition. She will finance the rest of the cost by making monthly payments over five years. She can finance the cost at a rate of 8.64%, compounded monthly. She will also have to pay 8.23% sales tax, a $2,243 vehicle registration fee, and a $314 documentation fee. If the dealer gives Valerie 87.5% of the trade-in price on her car, listed below, approximately how much will Valerie pay in total for her new car? (Round all dollar values to the nearest cent, and consider the trade-in to be a reduction in the amount paid.)

b. $38,821

Bernie has decided to purchase a new car with a list price of $18,575. Sales tax in Bernie's state is 7.40%, and he will be responsible for a $795 vehicle registration fee and a $110 documentation fee. Bernie plans to trade in his existing car, a 1999 Buick Riviera in good condition, and finance the rest of the cost for five years at an interest rate of 12.77%, compounded monthly. Assuming that the dealer gives Bernie the listed trade-in price for his car, what will his monthly payment be? Round all dollar values to the nearest cent. Buick Cars in Good Condition

b. $439.12

Cassandra purchased a new car. The car had a list price of $16,870. Cassandra made a down payment of $1,800 and financed the rest, paying 12.3% interest compounded monthly over a payment period of four years. If Cassandra also had to pay 7.8% sales tax, a $895 vehicle registration fee, and a $68 documentation fee, what is her monthly payment

b. $459.42

Cassandra purchased a new car. The car had a list price of $16,870. Cassandra made a down payment of $1,800 and financed the rest, paying 12.3% interest compounded monthly over a payment period of four years. If Cassandra also had to pay 7.8% sales tax, a $895 vehicle registration fee, and a $68 documentation fee, what is her monthly payment?

b. $459.42

Annie would like to take out a loan to put a new playground in her yard for her kids. She offers her car which is worth $7,800 as collateral. The loan officer at the bank is permitted to loan Annie 92% of the value of her collateral. How much will Annie be able to borrow for the playground using her car as collateral?

b. $7,176.00

Shauna wants to buy a house and plans to rent the apartment located in the basement for extra income. The house has a purchase price of $195,600 and she will make a 5% down payment. Shauna has qualified for a 30 year mortgage with a fixed rate of 5.875%. Approximately how much rent should she charge for the apartment in order to cover her monthly mortgage payment if she only wants to spend $400 a month of her own money?

b. $700

Laura is currently paying off her four-year car financing. When she purchased her car, it had a list price of $19,858. Laura traded in her previous car, a good-condition 2000 Honda Insight, for 85% of the trade-in value listed below, financing the rest of the cost at 9.5% interest, compounded monthly. She also had to pay 9.27% sales tax, a $988 vehicle registration fee, and a $77 documentation fee. However, because Laura wants to pay off her loan more quickly, she makes a total payment of $550 every month. How much extra is she paying monthly? Round all dollar values to the nearest cent.

b. $71.72

Claudius took out an unsubsidized Stafford loan at the beginning of his six-year college career. The loan had a principal of $4,850, an interest rate of 6.5% compounded monthly, and a duration of ten years. If Claudius started paying off the loan when he graduated, what is his monthly payment? Round all dollar values to the nearest cent.

b. $81.25

Cesar is excited that he only has 12 months left before he pays off his credit card completely. His current balance is $3,750 and his APR is 17.5%. But when he is involved in a car accident, he is forced to use his credit card to pay a $1,000 deductible to get his car fixed. How much will Cesar's minimum monthly payment increase if he still wants to pay off his credit card in 12 months?

b. $91.44

What would the monthly payment be for a $5,000 loan with a 6.25% interest rate compounded monthly spread over 60 months?

b. $97.25

Karina bought a townhouse for $199,900. She has a 30 year mortgage with a fixed rate of 5.5%. Karina's monthly payments are $998.08. What percent of the purchase price was Karina's down payment?

b. 12%

Shaquil needs to borrow $400. The loan company charges him $80 in fees for the loan. Shaquil calculates that the annual percentage rate (APR) on his loan is 250%. Approximately what is the term of Shaquil's loan?

b. 29 days

The Johnsons are buying a house that costs $210,000 and can afford a 20% down payment. If the Johnsons want the lowest monthly payment, which loan option would you recommend?

b. 30 year fixed, 20% down at a fixed rate of 6%

You have just finished paying off your $35,125 loan, a feat which took ten years of quarterly payments. The loan had an interest rate of 7.44%, compounded quarterly. If you also paid $5,180.70 in service charges, what percentage of the total cost was made up by your finance charges? Round all dollar values to the nearest cent.

b. 36.47%

Jessica's bank is offering her a loan with a stated rate of 4.90% interest. If the interest is compounded every two months, what will Jessica really pay for interest?

b. 5.00%

Cindy has decided to lease a car. The lease includes a money factor of 0.00354. What interest rate is Cindy being charged in her lease?

b. 8.5%

What is a credit report?

b. A credit report is a detailed listing of your credit history.

Which of the following is not a step in creating a debt payment plan?

b. Consolidate all credit cards onto a single card with a single interest rate.

The following statement is from the contract Peter signed with his Homeowner's Association (HOA). "Overnight parking on community streets is prohibited. For the purpose of this contract, 'overnight' will be defined as the hours between 11:00 p.m. and 4:00 a.m. The HOA will monitor overnight parking not less than once every calendar week with nightly patrols by community security. "In the event a car is found parked on community streets overnight and that ownership of the offending car can accurately be verified as a community homeowner, the homeowner will receive one (1) written warning asking him or her to correct the situation. A second and third infraction by the same homeowner, whether or not it is with the same car, will result in a monetary fine as permitted by CC&R guidelines and HOA bylaws. Further infractions (past 3) will result in monetary fines in addition to the towing of the car at the homeowner's expense." Because of the extremely low ground effects and body profile on his racing car, Peter is unable to drive his car off of the street and onto the driveway. He has parked on the street overnight for the past five weeks. He has received one written warning and one monetary fine from the HOA. What consequences should Peter expect after this week's security check?

b. He will receive another monetary fine.

Which loan or loans listed below are awarded based on the financial need of the student? I. Perkins loan II. subsidized Stafford loan III. unsubsidized Stafford loan

b. I and II

The following section is a statement from the rental agreement Tim signed when he rented his car this past weekend. "Upon checkout, the fuel level of the vehicle will be determined by turning the vehicle on and visually inspecting the fuel gauge. The approximate fuel level will be recorded on the Check-Out sheet and verified with initials by the vehicle Renter. One copy of the Check-Out sheet will be given to the customer. Another copy will be kept with the on-site records of the vehicle. "The rented vehicle must be returned with a minimum fuel level the same as that indicated on the Check-Out sheet. A vehicle returned with a fuel level less than the approximate level indicated on the Check-Out sheet will be completely refueled with on-site pumps. The price of the fuel used to refuel the vehicle will be added to the Renter's total charge at a cost of $4.50 per gallon plus a $5.00 refueling charge." Tim is running extremely late and has just 5 minutes to return his rental car to the agency. The fuel tank in the car is half empty. It was full when he picked it up. (The car has a 12-gallon fuel tank.) He doesn't think he can get gas and get to the agency to return the car in time. Returning the car a day late will result in an extra daily rental charge of $32.00 and refueling the car on his own will cost $2.59 per gallon at the local gas station. Which of the following statements is true?

b. It would be cheaper to return the car on time and pay the refueling costs.

James has a balance of $1,230 on his credit card that has an APR of 24%. He currently pays the minimum monthly payment of $30.75. If James wants to pay off his balance in 18 months, determine the monthly payment he would need to make. Choose the following modification with the least cuts to his current expenses that will allow James to pay off his balance in 18 months.

b. James can eliminate $25 from Food/Clothes and $27 from Entertainment.

Maria is going to take out a loan with a principal of $19,700. She has narrowed down her options to two banks. Bank M charges an interest rate of 7.1%, compounded monthly, and requires that the loan be paid off in five years. Bank N charges an interest rate of 7.8%, compounded monthly, and requires that the loan be paid off in four years. How would you recommend that Maria choose her loan?

b. Maria should choose Bank M's loan if she cares more about lower monthly payments, and she should choose Bank N's loan if she cares more about the lowest lifetime cost.

The following graph shows Caroline's sales records since she started her position 22 months ago.

b. Morris will only see a rapid drop in performance, while Shawna knows that Caroline is usually a solid salesperson and that her lapses never last long.

Tony is a loan officer. He determines his clients' eligibility for loans and for good interest rates by using their credit scores. The scores of several clients are shown in the following table.

b. Neil has the highest mean score, but Jeff has the highest median score.

Peter wants to buy a duplex with a purchase price of $226,950. Peter can afford a 10% down payment. Peter earns $2,985 a month and wants to spend no more than 10% of his income on his mortgage payment. Peter is going to rent out the other half of the duplex. He thinks that if he charges $900 a month in rent this will cover the remainder of his mortgage payment. Given that Peter has a 30 year mortgage with a fixed rate of 6.25%, how should Peter adjust how much he charges for rent of the other half of the duplex?

b. Peter should increase the rent by $60.

Tom was recently turned down for a loan. He would like to re-apply next year for the same loan. Which of the following is not a change he could make to increase his chances of being approved for the loan?

b. Take out some more credit cards to increase his monthly debt.

Trish is having trouble understanding why she was not approved for her loan. Which of the following probably kept Trish from getting her loan?

b. Trish's credit score is a solid 525.

Which of the following is something you would not expect to see on a basic loan application?

b. doctor's name and address

Which of the following is a pair of events which are dependent on one another?

b. drawing a pair of cards from a deck

Lenders look at the credit score of a loan applicant in order to

b. ensure that the applicant is financially responsible

Which of the following is something a lender will not consider when reviewing your loan application?

b. family size

Which of the following is least likely to be a warning sign that one's debt is at a critical point?

b. having several credit cards

A written contract is not legally binding until

b. it is signed by all parties involved

Mikah buys a new DVD player. After 9 days, he sees the same player on sale at another store for considerably less than what he paid for his. Since he still has the receipt, he decides to return the DVD player, get his money back, and buy it at the cheaper price. When he tries to make the return, he is disappointed to find out that returns on electronics must be made within three days of purchase. Which of the following responsibilities did Mikah most likely not meet?

b. know the return policy

How is the interest rate on a payday loan calculated?

b. total fees divided by loan amount

Verbal contracts are generally discouraged because

b. without a physical signature, they can be very difficult to enforce

Which of the following increases liabilities but not assets?

b. Taking out a loan to go on vacation

stock options

benefit given to employees in order for them to earn money in stocks

what is it called when companies pay out a certain amount because they reached sales goals

bonuses

Curtis just recieved a raise at work increasing his salary by $8,500. He knows that an increase in salary will increase the amount of federal income taxes withheld from his paycheck. Which of the following statement best describes the effect his raise will have on state income tax withholdings? a. State income tax is unrelated to federal, he will see no change in his state withholding. b. Since he is having more withheld for federal, he will have less withheld for state so that he pays the same amount in the end. c. State income tax is usually a set percentage of federal income tax. With an increase in federal he will see an increase in state withholding. d. Since he is making more money, the state government will take advantage of his raise and charge him more income tax. His state withholding will increase.

c

Josef owns four par value $1,000 bonds from Dowc Beverage Co. Each bond has a market value of 104.561 and gives 9.2% interest. Josef also owns 170 shares of stock in Dowc Beverage Co. Stock in Dowc Beverage Co. has a share price of 26.25 and pays a dividend of $2.38. If the broker Josef employed to purchase these stocks and bonds charges a commission of $72 for each ten shares of stock bought or sold and a commission of 4% of the market value of each bond bought or sold, which aspect of Josef's investment in Dowc Beverage Co. has a greater percent yield, and how much greater is it? a. The stocks have a yield 2.15 percentage points higher than that of the bonds. b. The stocks have a yield 0.27 percentage points higher than that of the bonds. c. The bonds have a yield 1.35 percentage points higher than that of the stocks. d. The bonds have a yield 2.08 percentage points higher than that of the stocks.

c

Julio just bought a $267,900 house. He had a 20 year mortgage with a fixed rate of 5.875%. Julio's monthly payments are $1,558.09. What percent of the purchase price was Julio's down payment? a. 13% b. 15% c. 18% d. 20%

c

Nick found his dream home that has a purchase price of $192,000. Nick earns $3,325 a month and wants to spend no more than 30% of his income on his mortgage payment. He has saved up $35,000 for a down payment. Nick is considering the following loan option: 20% down, 30 year at a fixed rate of 6.25%. What modification can be made to this loan to make it a viable option, given Nick's situation? a. Change to a 15 year fixed loan b. Change the interest to 6% c. Change the down payment to 18% down d. None. This is a viable option for Nick.

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

Shanika and Vanesa are comparing their electric bills for the past month. Shanika is on a standard use plan and Vanesa is on an interval use plan. Each person's usage is listed on the chart below: Standard Use Plan Interval Use Plan 7.5 cents/kWh for the first 400 kWh 10 cents/kWh for the next 400 kWh 12.5 cents/kWh for anything over 800 kWh On-peak hours - 15 cents/kWh Off-peak hours - 3 cents/kWh Both women use 1,325 kWh for the given 30 day period. Vanesa uses 500 kWh during on-peak hours and 825 during off-peak hours. Which person ends up paying more for their utilities? How much more? a. Vanesa pays $35.88 more than Shanika. b. Vanesa pays $99.75 more than Shanika. c. Shanika pays $35.88 more than Vanesa. d. Shanika pays $99.75 more than Vanesa.

c

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

c

Which of the following companies offers the greatest total employment compensation? Company A Company B Company C Company D Gross Pay $41,600 $40,800 $41,300 $42,000 Paid insurance $1,800 $2,400 $2,000 $2,100 Paid time off $3,700 $3,100 $2,800 $2,900 Job expenses $2,000 $1,800 $800 $2,500 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

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 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 work for a lender that requires a 15% down payment and uses the standard debt-to-income ratio to determine a person?s eligibility for a home loan. Of the following, choose the person that you would rate the highest on their eligibility for a home loan. Person A Person B Person C Person D home value $95,000 $107,000 $120,000 $128,000 income $46,000 $53,000 $58,000 $60,000 savings $20,000 $13,910 $18,000 $19,200 recurring debt $310 $198 $265 $400 a. Person A b. Person B c. Person C d. Person D

c

Mr. Chavez has assets of $250,000 and liabilities of $18,000. He decides to finance the entire amount of the purchase of a car valued at $26,000. Which of the following is true?

c) Mr. Chavez increased both his assets and net worth.

Which of the following could be true if one decreases their long term liability and increases their liquid assets?

c) Paid down mortgage and received a cash prize.

Over the period of a year, Sam's net worth increased. Which of the following could be true?

c) Sam's assets increased by more than his liabilities.

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

c)$21,000

Which of the following modifications to the list of assets and liabilities below would result in a negative net worth? House valued at $90,000. Mortgage owed $78,000. Car valued at $11,000. Car loan of $5,000. Student loan of $13,700. Stocks valued at $2,500. Savings of $3,000.

c)Borrowing $10,000 more in student loans.

Freida's credit card has an APR of 13.73%, and it calculates her finance charge by using the daily balance method and a 30-day billing cycle. On September 1st, Freida had a balance of $449.22. During the month of September, she made a payment of $85.33 and a purchase of $60.99. How much greater will her September finance charge be if the purchase occurred on September 7th and the payment occurred on September 20th than it would be if the payment occurred on September 7th and the purchase occurred on September 20th?

c. $0.72

Kate took out a subsidized Stafford loan worth $9,710 to pay for college. The interest rate on the loan was 5.9%, compounded monthly. It took Kate 5 years to pay off the loan after graduation. What portion of the total amount she paid represented the interest?

c. $1,526.22

Sebastian has just graduated after four years of university. He took out an unsubsidized Stafford loan worth $8,180 to help pay for his tuition. The loan has a duration of ten years. If the loan has an interest rate of 5.3%, compounded monthly, how much interest capitalization has occurred by the time he graduated? Round all dollar values to the nearest cent.

c. $1,926.97

Kurtis is expecting a promotion which, hopefully, comes with a raise. He would like his raise to help him correct a high debt-to-income (DTI) ratio of 43%. His current annual salary is $53,000. How much of a raise would Kurtis need applied to his annual salary to get his DTI ratio down to a more reasonable 36%?

c. $10,305

Bianca took out a $2,600 unsubsidized Stafford loan. She will be attending school for four years, and she wishes to have the loan paid off five years before its normal ten-year duration is finished. The loan has an interest rate of 6.2%, compounded monthly. How much will she have to pay monthly to avoid interest capitalization?

c. $13.43

Bob is thinking about leasing a car with a MSRP of $24,000 for three years. After three years, the leasing company expects the car to have a value of 72% of its original MSRP. What will the residual value of the car be after three years?

c. $17,280

Henry is at the end of a three-year lease for his car. His leasing company says that his car is currently worth $12,780, a 72% residual value. Determine the original MSRP of Henry's leased car.

c. $17,750.00

Tamora just made the last of her monthly payments on her loan. She had been making these payments for the past nine years. The loan had a principal of $10,675 and an interest rate of 4.75%, compounded monthly. In addition, Tamora paid $939.25 in service charges. What was Tamora's total finance charge? Round all dollar values to the nearest cent.

c. $3,403.53

It is the policy of stores owned by the Talkara Co. to give out bonuses to salespeople every six months. The size of the bonus is determined by averaging (taking the mean of) the two highest and the lowest monthly sales totals from the six-month period, taking 8% of the result, and splitting it evenly among the salespeople. The graph below shows sales for the most recent bonus period.

c. $324

Michelle has four credit cards with the balances and interest rates listed below. If Michelle wanted to pay off all four credit cards in 36 months, what would her total monthly credit card payment be?

c. $475.67

Jerry has a credit card debt of $15,600 that he would like to reduce by applying $8,500 of his inheritance money to the balance. In addition, he would like to modify his debt payment plan to pay off the remaining balance in 24 months rather than 60 months. His credit card has an APR of 18%. How much will these changes save Jerry in finance charges (interest)?

c. $6,760.96

Calvin's credit card computes finance charges using the daily balance method. His card has a billing cycle of 30 days and an APR of 14.75%. The following table details Calvin's transactions in the month of September.

c. $625.91

Roderigo has just finished paying back his $8,575 unsubsidized Stafford loan, which he took out to fund his four-year degree. The loan had a duration of ten years and an interest rate of 7.1%, compounded monthly. Roderigo will allow interest capitalization. If Roderigo made monthly payments to pay off his loan, how much interest did he pay in total? Round all dollar values to the nearest cent.

c. $7,353.80

Sarah has a credit card balance of $9,450 with an APR of 17%. With her current budgeted payment, Sarah will be able to pay off this debt in 36 months. But Sarah's best friend just invited her to spend two months in Europe with her in 9 months. Wanting to have her credit card balance paid off before she goes to Europe, Sarah decides to take on a second job. What additional monthly income will Sarah need in order to pay off her credit card in 9 months?

c. $788.85

The following table shows a portion of a four-year amortization schedule. After twenty-five payments, how much of the principal has been paid off?

c. $9,543.97

Determine the finance charge on a $6,500 loan with an interest rate of 9.5% compounded monthly over 36 months.

c. $995.56

Bob is thinking about leasing a car. The lease comes with an interest rate of 8%. Determine the money factor that will be used to calculate Bob's payment.

c. 0.00333

When calculating a loan's effective interest rate, if the nominal rate is 8.5%, what value of i do you plug into your equation?

c. 0.085

You are the manager of a retail store, and you have been tasked with finding the return rate on a certain brand of laptop computers. You have assembled the data on the number of computers sold and the number returned over the past six months in the table below. Month Oct Nov Dec Jan Feb Mar Sold 1,621 1,752 1,848 1,634 1,725 1,780 Returned 223 415 421 560 330 304 Using the table as experimental data, if your store has 379 laptops returned in April, how many laptops are likely to have been sold in April?

c. 1,743

Harold randomly selected one square tile and one round tile from the sets shown below. What is the probability that Harold selected a pink square tile, and either a red or a blue round tile?

c. 1/9

John is planning to take out a personal loan for $4,500 to buy a car. He would like to keep his monthly payments at or below $150.00 and pay the loan off in three years. Which of the following is the greatest interest rate John can accept and still meet his criteria?

c. 12.25% compounded monthly

Charles is going to purchase a new car that has a list price of $21,450. He is planning on trading in his good-condition 2004 Dodge Neon and financing the rest of the cost over three years, paying monthly. His finance plan has an interest rate of 12.28%, compounded monthly. Charles will also be responsible for 6.88% sales tax, a $1,089 vehicle registration fee, and a $124 documentation fee. If the dealer gives Charles 80% of the listed trade-in price on his car, once the financing is paid off, what percent of the total amount paid will the interest be? (Consider the trade-in to be a reduction in the amount paid

c. 16.70%

Julio just bought a $267,900 house. He had a 20 year mortgage with a fixed rate of 5.875%. Julio's monthly payments are $1,558.09. What percent of the purchase price was Julio's down payment?

c. 18%

Dwayne had a balance of $95.13 in his checking account on Monday morning. That day he used his debit card for the following transactions: Breakfast at the corner bagel shop: $8.53 Gas in the car: $28.60 Cable bill: $65.39 Oil change: $30.64 Dwayne's bank uses a balance system of debiting from highest to lowest. The bank will not return amounts up to a total of $50 in overdrafts, but they do charge a fee for each overdraft. How many overdraft fees will Dwayne incur?

c. 3

Johnny's monthly expenses and income are listed below. Calculate Johnny's debt-to-income (DTI) ratio.

c. 31%

Ralph is leasing a car worth $24,000 for three years. His leasing company says that the car Ralph is leasing will only be worth $16,000 at the end of his lease. Approximately what percentage of the car's original value will Ralph need to pay as part of his lease?

c. 33%

Jim has an annual salary of $96,000. His monthly expenses include a $2,500 mortgage payment, a $250 lease payment, $500 in minimum credit card payments, and a $425 payment on his speed boat. He also receives $1,200 in interest from his savings and other accounts each month. Calculate Jim's DTI (debt-to-income) ratio.

c. 40%

Tim and Sally are taking out a personal loan to pay for their wedding expenses. The loan is for $9,000 and comes with an interest rate of 9.5% compounded monthly. The couple wants to pay the loan off as quickly as possible, keeping the monthly payments below $250. The lender offers repayment plans in 12 month increments. How long of a loan should they request?

c. 48 months

In calculating the monthly payment for a five-year loan, what value should be used for n, the number of periods over which the loan is repaid, as it appears in the following formula?

c. 60

You are the manager of a clothing store. You must decide how many of your employees to put on the sales floor, and how many to put on the register. Because employees on the sales floor cause customers to buy more products, if you do not have at least 2 employees on the register for every 5 employees working on the sales floor, your registers will get very clogged and you will lose business. You have a total of 84 employees, and you wish to have as many on the sales floor as possible. How should you divide your employees?

c. 60 on the sales floor, 24 on the register

Christine is reviewing her credit scores from the three major credit bureaus. Her Experian score is 775, her Equifax score is 721, and her TransUnion score is 760. What is Christine's median credit score? (Round to the nearest whole point, if applicable.)

c. 760

Barbara got a flat tire and does not have a spare. She needs her car for work, so she goes to a business that offers payday loans in order to get the money to buy a new tire. She borrows $75 and plans to pay it back when she gets paid in 8 days. Barbara is charged a fee of $15 and the term on her loan is 8 days. Approximately what is the annual percentage rate on her loan?

c. 913%

Melanie is looking for a loan. She is willing to pay no more than an effective rate of 9.955% annually. Which, if any, of the following loans meet Melanie's criteria? Loan A: 9.265% nominal rate, compounded weekly Loan B: 9.442% nominal rate, compounded monthly Loan C: 9.719% nominal rate, compounded quarterly

c. A and B

Nick found his dream home that has a purchase price of $192,000. Nick earns $3,325 a month and wants to spend no more than 30% of his income on his mortgage payment. He has saved up $35,000 for a down payment. Nick is considering the following loan option: 20% down, 30 year at a fixed rate of 6.25%. What modification can be made to this loan to make it a viable option, given Nick's situation?

c. Change the down payment to 18% down

Of the following, which statement or statements accurately represent possible effects of a long-term credit purchase on your credit score? I. Showing a willingness to pay high interest rates increases your score. II. Making only minimum payments for an extended time can hurt your score. III. Regularly paying off a credit balance can boost your score.

c. II and III

Say you are considering two loans. Loan F has a nominal interest rate of 5.66%, compounded monthly. Loan G has a rate of 6.02%, compounded semiannually. Which loan will give the lower effective interest rate, and how much lower will it be?

c. Loan F's effective rate will be 0.302 percentage points lower than Loan G's.

To minimize finance charges calculated by the daily balance method, when in the billing cycle is it best to make purchases and payments?

c. Payments should be made early in the billing cycle, and purchases should be made late in the billing cycle.

Susan just got a promotion that increased her annual salary from $52,000 to $68,000. Susan's monthly expenses included a mortgage payment of $1,500, three minimum credit card payments that total $350, a lease payment of $280, a student loan payment of $250, and a personal loan payment of $325. How did Susan's debt-to-income ratio change with her promotion?

c. Susan's debt-to-income ratio decreased by about 15%.

The following table shows a portion of a three-year amortization schedule. Use the information in the table to decide which of the following statements is true

c. The amount applied to the principal is increasing each month

The following table shows a portion of a three-year amortization schedule. 2007-10-05-00-00_files/i0120000.jpg Use the information in the table to decide which of the following statements is true.

c. The amount applied to the principal is increasing each month.

Paul paid $663 for a new freezer. He paid for the freezer with his credit card, which has an interest rate of 15.28% compounded monthly, and made monthly payments for five years until the freezer was paid off. He kept the freezer for seven years, and it used an average of $2.14 of electricity per week. Paul made no other purchases or payments with his credit card until the freezer was paid off. Between the interest and the electricity, which component of the lifetime cost of the freezer was greater, and how much greater was it? (Round all dollar values to the nearest cent.)

c. The electricity cost $489.76 more than the interest.

Say that you put the set of tiles shown below into a bag and conduct a series of trials in which you draw one tile randomly from the bag, record the color, and replace it. The table below shows the number of times in each set of trials that you drew a blue tile. 2007-16-04-00-00_files/i0120000.jpg Trial 1 2 3 4 5 # of Draws 54 36 80 22 75 # of Blues 18 11 20 4 32 Between the theoretical probability that you will draw a blue tile and the experimental probability that you will draw a blue tile, which is greater, and how much greater is it? Express all probabilities as percentages to two decimal places, and express differences by number of percentage points (for example, 12% is 2 percentage points greater than 10%).

c. The experimental probability is 4.06 percentage points greater than the theoretical probability.

Why is the interest rate of a loan one of the most important things to consider when shopping around for loans?

c. The interest rate can drastically change the total amount paid to the lender, in the case of mortgages, up to thousands of dollars.

Which answer choice does not name one of the three national credit reporting agencies (also called credit bureaus)?

c. TransAtlantic

One difference between obtaining a car with a lease or a loan is that

c. a loan finances the total purchase price of the car while a lease finances only the depreciated value and related fees

Bob and Suzie are both signing a contract where Bob agrees to remove a beehive and Suzie agrees to pay Bob $120.00. What is the consideration in this example?

c. both the removal of a beehive and the payment of $120.00

Which part of the decision-making process is directly related to brainstorming?

c. generating possible options

A lender estimates the closing costs on a home loan will be 3.75% of the loan amount of $120,000. The actual closing costs are listed below. Closing Cost Charge Loan origination $300 Title insurance $600 Attorney's fees $1,250 Appraisal $550 Inspection $525 Recording fees $125 Escrow $2,000 Evaluate the lender's good faith estimate. a. The lender made an excellent estimate; it was equal to the actual closing costs. b. The lender made a very good estimate; it was within 0.25% of the actual closing costs. c. The lender made a fairly good estimate; it was between 0.25% and 0.5% of the actual closing costs. d. The lender made a poor estimate; it was off by more than 0.5% of the actual closing costs

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

Sandy is trying to reconstruct her spending pattern from July. She knows that she had $277 in her account on July 1, but after that, her receipts and balance statements are all scrambled. Here are Sandy's records: Date Transaction Type Amount ($) 7/26 Purchase 86 7/25 Deposit 76 7/4 Purchase 137 7/6 Deposit 90 7/10 Purchase 131 7/9 Purchase 145 7/15 Deposit 152 7/19 Purchase 137 Assuming that this is a complete, if scrambled, record of Sandy's July spending and that any overdraft fees incurred do not affect the running total, how many times did Sandy overdraw her account in July? a. Sandy never overdrew her account. b. Sandy only overdrew her account once. c. Sandy overdrew her account twice. d. Sandy overdrew her account more than twice.

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. Her shipping charges are based on the following table: Amount of Purchase Standard Shipping Express Shipping up to $20 free $3.50 $50 up to $100 $6.35 $8.20 $100 up to $200 $7.80 $11.60 $200 and over $10.50 $16.45 Vera selects standard shipping and the company bills her credit card $20.78 for the total of the online purchase. Determine if Vera has been billed correctly for her purchase. a. Vera has been billed correctly. b. Vera has not been charged enough for her purchase. c. Vera has been over charged by $1.13 for her purchase. d. Vera has been over charged by $3.50 for her purchase.

d

What is the portion of a home's purchase price paid in cash and is not part of the mortgage loan? a. principal b. insurance c. taxes d. down payment

d

Which of the following is not a component of a mortgage payment? a. principal b. interest c. taxes d. down payment

d

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

d

Which of the following modifications to the list of assets and liabilities below would result in a positive net worth? Home owned $105,000. Mortgage owed $100,000. Car valued at $26,000. Car loan of $22,000. Investment fund of $4,500. Savings of $1,500. Credit card balance of $15,000.

d) All of the above

The following table shows the assets and liabilities of the Chang family in 2007 and 2008. Based on the table, which of the following is true?

d) From 2007 to 2008, assets increased and liabilities decreased.

Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000? Recreational Vehicle valued at $110,000. Car valued at $27,000. Medical bills totaling $8,700. Loan balance of $80,000. Savings of $5,000. Retirement fund of $50,000. Credit card balance of $2,300.

d) adding $1,000 in credit card debt

The car owned by a person is part of his or her ____.

d) use assets

Which of the following modifications to the list of assets and liabilities below would result in an increase in net worth? Cash of $300. Car valued at $28,000. Car loan of $22,000. Motorcycle valued at $6,000. Savings of $2,000. Credit card balances of $4,000. Student loan of $10,000.

d)all of the above

Which of the following would be a good argument to buy rather than lease?

d. "I would prefer to walk out of the deal in the end with something to show for the money I put in."

Scott is planning to buy a new car. He intends to trade in his existing car, a 2001 Chrysler Concorde in good condition. Using the table below, estimate how much Scott's car is worth.

d. $1,998

Cindy would like to borrow money from her bank to restore her collectible car. It will take $12,000 to fully restore the car. Cindy's bank offers secured loans at 89% of the collateral value. How much collateral does Cindy need to offer to get a loan big enough to allow her to fully restore her car?

d. $13,483.15

Hal has just graduated from four years of college. For the last two years, he took out a Stafford loan to pay for his tuition. Each loan had a duration of ten years and interest compounded monthly, and Hal will pay each of them back by making monthly payments, starting as he graduates. Hal's loans are detailed in the table below. Year Loan Amount ($) Interest Rate (%) Subsidized? Junior 4,048 5.9 N Senior 5,295 7.6 Y Once all of his loans are paid off, what will Hal's total lifetime cost be? Round all dollar values to the nearest cent.

d. $13,615.20

Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7.96% sales tax, a $2,138 vehicle registration fee, and a $262 documentation fee. Reg's financing has an interest rate of 10.27%, compounded monthly, and a duration of three years. If Reg makes a monthly payment of $773.89, which of the following was his down payment? Round all dollar values to the nearest cent

d. $2,800

Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7.96% sales tax, a $2,138 vehicle registration fee, and a $262 documentation fee. Reg's financing has an interest rate of 10.27%, compounded monthly, and a duration of three years. If Reg makes a monthly payment of $773.89, which of the following was his down payment? Round all dollar values to the nearest cent.

d. $2,800

Terry has just purchased a new car, which had a list price of $16,825. She had to pay 7.19% sales tax, a $1,128 vehicle registration fee, and a $190 documentation fee. Terry traded in her previous vehicle, a 2003 Honda Element in good condition, and financed the rest of the cost over five years at an interest rate of 10.59%, compounded monthly. If the dealer gave Terry 90% of the listed trade-in value on her car, how much will Terry have paid in interest, once the loan is paid off? (Round all dollar values to the nearest cent, and consider the trade-in to be a reduction in the amount paid.)

d. $3,914.68

At the beginning of each of her four years in college, Miranda took out a new Stafford loan. Each loan had a principal of $5,500, an interest rate of 7.5% compounded monthly, and a duration of ten years. Miranda paid off each loan by making constant monthly payments, starting with when she graduated. All of the loans were subsidized. What is the total lifetime cost for Miranda to pay off her 4 loans? Round each loan's calculation to the nearest cent.

d. $31,337.27

Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer's monthly lease payment be?

d. $312.06

Helena has taken out a $9,300 unsubsidized Stafford loan to pay for her college education. She plans to graduate in four years. The loan has a duration of ten years and an interest rate of 6.4%, compounded monthly. By the time Helena graduates, how much greater will the amount of interest capitalized be than the minimum amount that she could pay to prevent interest capitalization? Round all dollar values to the nearest cent.

d. $324.33

Determine the monthly payment for a 36 month lease on a $26,000 car with a residual of 71% and an interest rate of 7.5%.

d. $348.38

Christopher has just made the final monthly payment necessary to pay off his car financing. The car had a list price of $25,995. He made a down payment of $2,434. Additionally, there was a $1,626 vehicle registration fee and a $275 documentation fee. He also paid sales tax of 8.44% on the cost of the vehicle. He included the taxes and fees with the purchase price of the car in a four-year finance agreement with an interest rate of 11.10%, compounded monthly. After completing payment of the four-year loan, what was the total amount of money that Christopher paid for his car? Round to the nearest dollar.

d. $36,808

Ralph is leasing a $32,000 car for 36 months. The terms of his lease include an 8.5% interest rate (money factor of 0.00354) and a residual value of 72%. Determine Ralph's approximate monthly lease payment.

d. $443.73

Calculate the monthly payment for a 5-year car loan of $23,570 at 10.43% interest, compounded monthly.

d. $505.79

Brian bought a new air conditioning unit on his credit card. The unit had a base price of $435. Brian made no other purchases on his credit card. Brian's credit card has an interest rate of 9.4%, compounded monthly, and Brian paid off the balance by making monthly payments for a year and a half. If the sales tax in Brian's area is 8.51%, how much did Brian pay in total? (Round all dollar values to the nearest cent.)

d. $507.96

The following section is a statement from the rental agreement Tim signed when he rented his car this past weekend. "Upon checkout, the fuel level of the vehicle will be determined by turning the vehicle on and visually inspecting the fuel gauge. The approximate fuel level will be recorded on the Check-Out sheet and verified with initials by the vehicle Renter. One copy of the Check-Out sheet will be given to the customer. Another copy will be kept with the on-site records of the vehicle. "The rented vehicle must be returned with a minimum fuel level the same as that indicated on the Check-Out sheet. A vehicle returned with a fuel level less than the approximate level indicated on the Check-Out sheet will be completely refueled with on-site pumps. The price of the fuel used to refuel the vehicle will be added to the Renter's total charge at a cost of $4.50 per gallon plus a $5.00 refueling charge." Tim forgot to refuel the vehicle when he returned it. His Check-Out sheet indicates that the vehicle had about 1/2 of a tank left. The tanks is now nearly empty. If it takes 11.75 gallons of gas to refuel the car Tim rented, how much extra should he expect to pay because he forgot to get gas?

d. $57.88

Jerry's new car has a list price of $22,415. The sales tax in Jerry's state is 8.75%, and he is responsible for a $1,925 vehicle licensing fee and a $79 documentation fee. Jerry plans to make a down payment of $3,000 and finance the rest at an interest rate of 10.86%, compounded monthly. If Jerry's financing plan spans three years, what will his monthly payment be?

d. $763.89

Kevin has just finished paying off his loan. He was assessed a service charge of $422. He paid off the principal and the interest by making weekly payments of $36.13 for four years. If the principal was $7,150, how much did Kevin pay in finance charges, to the nearest dollar?

d. $787

In calculating the monthly payment for a loan with an 8.5% interest rate, what value should be used for i, the interest rate per period, as it appears in the following formula?

d. 0.0071

Tess is going to purchase a new car that has a list price of $29,190. She is planning on trading in her good-condition 2006 Dodge Dakota and financing the rest of the cost over four years, paying monthly. Her finance plan has an interest rate of 10.73%, compounded monthly. Tess will also be responsible for 7.14% sales tax, a $1,235 vehicle registration fee, and a $97 documentation fee. If the dealer gives Tess 75% of the listed trade-in price on her car, once the financing is paid off, what percent of the total amount paid will the interest be? (Consider the trade-in to be a reduction in the amount paid.)

d. 18.98%

When purchasing her new car, Molly traded in her previous car, which was a Buick in good condition. The dealer offered her 80% of the listed trade-in value for her car, giving her a total of $1,340.80. What was Molly's previous car? Buick Cars in Good Condition Model/Year 1998 1999 2000 2001 2002 Century $929 $1,086 $1,150 $1,488 $1,595 LeSabre $2,075 $2,282 $2,690 $2,935 $3,374 Regal $1,676 $1,794 $2,030 $2,214 $2,566 Riviera $1,291 $1,455 $1,520 $1,814 $1,959 a. 1999 LeSabre b. 2002 Century c. 2001 Riviera d. 1998 Regal

d. 1998 Regal

Eli is buying a townhouse that costs $276,650. He has $28,000 in savings and earns $4,475 a month. Eli would like to spend no more than 30% of his income on his mortgage payment. Which loan option would you recommend to Eli?

d. 30 year fixed, 10% down at a fixed rate of 5%

The Williams are buying a house that costs $323,000 and can afford a 10% down payment. If the Williams want the lowest monthly payment, which loan option would you recommend?

d. 30 year fixed, 10% down at a fixed rate of 6%

Trudy's monthly expenses are outlined in the chart below. Trudy's job pays her $36,000 annually. Determine Trudy's DTI (debt-to-income) ratio.

d. 44%

Determine the annual percentage rate (APR) for a tax refund anticipation loan based on the following information. (Round to the nearest percent.) amount of loan = $985 total fees paid = $135 term of loan = 10 days

d. 500%

Sally spends $1,500 each month on her mortgage, mortgage insurance and property taxes. She has three credit cards with minimum monthly payments that total to $125.00 and a monthly car payment for $349.00. She currently brings in a gross monthly income of 3,750.00 from her job. Calculate Sally's debt-to-income (DTI) ratio.

d. 53%

How would a bigger down payment be beneficial to borrowers?

d. A bigger down payment is money paid toward principal, interest free, which also decreases the amount paid monthly.

What is the difference between a service charge and a finance charge?

d. A service charge is a fee assessed by a lender other than interest, and a finance charge is the total of the interest paid on a loan and the service charge.

Why does it take 30 years to pay off $150,000 loan, even though you pay $1000 a month?

d. Even though the principal would be paid off in just over 10 years, it costs the bank a lot of money fund the loan. The rest of the loan is paid out in interest.

Of the following statements, which one or ones indicate possible effects of a low credit score? I. You will have a difficult time qualifying for loans. II. Any loans you take out will be relatively short-term. III. You will have to pay higher than average interest rates.

d. I and III

From the statements below, identify the way or ways in which making only minimum monthly payments on a long-term credit purchase can be a disadvantage. I. It is illegal to make only the minimum payments for more than one year. II. Repeatedly making minimum payments harms your credit score. III. The total cost is higher if the length of the debt is longer.

d. II and III

When is taking a zero percent APR option more beneficial than a large rebate?

d. If the money you would save over the course of the loan is greater than the instant rebate, the zero percent APR is a better choice.

Below is an excerpt from the home loan contract Kyle signed with his bank. "The sum of the principal of the loan and all applicable interest will be divided into 360 monthly payments according to the amortization schedule. The Buyer shall make each monthly payment by the first day of the month it is due. A payment not received by the first day of the month it is due will be considered delinquent. A payment not received by the fifteenth day of the month it is due will be subject to a late charge of $75.00. If a payment is not received by the last day of the month it is due, the Buyer and transaction shall be reported to the appropriate credit agencies. In the event of delinquency, the Buyer may divide any payment not received into not more than three equal installments to be included on the next consecutive monthly payments. Notification of the Buyer's intent to do so must be made by written letter or phone call to the phone number and address listed below within one business week of delinquency." Kyle failed to make his payment by the first of this month. Kyle's monthly payment is currently $1,200. If Kyle decides to split the missing payment into two parts and pay it over the next two months, which of the following statements is false?

d. Kyle's monthly payments for the next two months will remain $1,200.

You are a loan officer trying to decide which clients deserve your best rates. The table below shows the credit scores of several loan applicants.

d. Lisa

Why do most student loans involve a co-signer?

d. Most students are young enough not to have much of a credit score or credit history, so a second party such as a parent or guardian can establish security of payment.

Dynatashia has a list of items she needs to buy at the store. She has written down the items and the advertised prices as shown: Hamburger - $3.99 per pound Hamburger buns - $1.29 2-liter soda - 3 for $2.00 Dynatashia buys 1.5 pounds of hamburger, 1 package of buns and 3 of the 2-liter bottles of soda. Her receipt is shown below.

d. No, Dynatashia paid too much for buns.

Which of the following is not a recommended action to perform before signing a contract?

d. Sign the contract, putting question marks next to items that don't make sense.

Ed needs to take out a loan for $7,000 to purchase a car. His bank has offered him a loan at 10.0% interest for 36 months or 10.5% interest for 24 months. Ed's goal is to save as much money as possible by the time he pays off the loan. Which of the following statements best describes what Ed should be thinking?

d. Since the finance charge for the 24 month loan is lower, this loan will save more.

Why do most leases limit the number of miles a lessee can drive in a year?

d. Since the lessee is essentially paying the value of depreciation when leasing a car, the amount of miles travelled affect the end value of the car.

What is required to have a legally valid contract?

d. The contract must represent a valid agreement between parties and an exchange of something of value between parties must have occurred or been promised to occur.

The following table shows the first two years of a three-year amortization schedule Use the information in the table to decide which of the following statements is true. a. The interest amount increases each month. b. The principal amount decreases each month. c. The payment amount changes each month. d. The payment amount each month stays the same

d. The payment amount each month stays the same

The following table shows the first two years of a three-year amortization schedule. 2007-10-05-00-00_files/i0020000.jpg Use the information in the table to decide which of the following statements is true.

d. The payment amount each month stays the same.

Perry is considering trying to open a new business within the next few years, and he is doing research to determine what kind of businesses tend to be successful. So far, he has compiled two tables. The first shows the number of businesses of several types started in Perry's city over the course of two years, and the number of those businesses which did not succeed and were forced to shut down within two years of opening. The second deals with separate records of successful new businesses, showing how much profit those new businesses turned over two years. Businesses on the boundary lines fall in the lower category. Type Food Retail Financial Service Opened 3,193 2,280 1,898 5,045 Closed 1,977 1,626 1,443 3,548 Up to $25k $25-50k $50-75k $75-100k Over $100k Food 945 623 601 258 114 Retail 813 548 347 188 63 Financial 316 244 195 86 51 Service 979 739 432 174 124 Using the tables as experimental data, determine whether it is more likely for a new food establishment to succeed and earn up to $25,000, or whether it is more likely for a new financial establishment to succeed and earn profits in either the $25,000-50,000 range or the $50,000-75,000 range, and how much more likely the one situation is than the other. Express all probabilities as percentages to two decimal places, and express differences by number of percentage points (for example, 23% is 5 percentage points greater than 18%).

d. The situation involving the food establishment has a probability 2.36 percentage points higher than the situation involving the financial establishment.

Which of the following is not something that will help you pay off credit card debt?

d. Transfer existing credit card balances to credit cards with "low introductory rates."

How does Truth-in-lending benefit consumers when shopping for a loan?

d. Truth-in-lending allows consumers to know every cost that is associated with the loans they research and apply for, and helps them reach the optimal decision.

Gina would like to apply for a loan, but knows that her current debt-to-income (DTI) ratio will keep her from being approved. Her current monthly debt includes a rent payment of $950.00, a car payment of $238.00, a student loan payment of $149.00, and two credit cards with a combined minimum monthly payment of $78.00. The bank requires a DTI of 36% in order to approve Gina?s loan application. What would Gina's gross monthly income need to be to get approved for the loan?

d. at least $3,930.56

What is the portion of a home's purchase price paid in cash and is not part of the mortgage loan?

d. down payment

Whic of the following is not a component of a mortgage payment?

d. down payment

Leasing a car for a short time is usually cheaper than buying the same car since

d. in leasing a car you pay only for the depreciation of the car rather than the total value

Andrew is choosing between four loans. Loan P has a nominal rate of 10.393%, compounded daily. Loan Q has a nominal rate of 10.516%, compounded weekly. Loan R has a nominal rate of 10.676%, compounded monthly. Loan S has a nominal rate of 10.755%, compounded annually. Which loan will give Andrew the best effective interest rate?

d. loan S

Deferment is the process in which a borrower postpones the repayment of a loan for a specified period of time.

deferment

Depreciation is the decrease in the value of real or personal property over a period of time.

depreciation

what is an advantage and disadvantage of leaves of absences

disadvantage: unpaid advantage: job security

A disposition fee, set by the car lease company, is due at the end of the lease to compensate the leasing company for the expense of selling or otherwise disposing of a vehicle.

disposition fee

Which of the following is an advantage of renting?

ease of mobility

A finance charge is the total cost of taking out a loan, which includes the interest paid over the lifetime of the loan and any service fees applied by the lender.

finance charge

where do unions get their money

from the members of the union

paid vacation time

full-time employees can take time off while still being paid their regular salary

what is an issue that an employee and employer that the union handles

grievances

Types of group insurance plans

group health, life, dental and vision insurance

what is a union

groups of people joined together for a common purpose

which type of insurance is absolutely crucial to have

health insurance

A lender estimates that the closing costs on a $312,500 home loan will be $12,500. The actual closing costs were 4.25% of the loan amount. Determine if the closing costs were higher or lower than the estimate and by what percent.

higher by 0.25%

what question can companies not ask future employees

if they plan on having children

bonuses

incentive pay based on the quality of work done, years of service or company sales/profits

List 4 factors a lending institution might use when determining your eligibility for a home loan.

income, savings, expenses, debt

graduated commision

increases as sales increase

Jenny used her credit card to buy a refrigerator with a base cost of $824. The refrigerator consumed an average of $0.09 in electricity every day. Jenny made regular monthly payments for three and a half years, at which point the refrigerator was paid off. Over the eight years that Jenny had the refrigerator, it needed repairs three times, costing $68.75 each time. If Jenny's credit card has an APR of 10.54%, compounded monthly, and sales tax in Jenny's area is 7.13%, what was the lifetime cost of Jenny's refrigerator? Assume that Jenny made no other purchases with her credit card, and round all dollar values to the nearest cent. (Remember that leap year occurs every four years.)

not c. $1,779.63 NOT b. $1,622.46

A security deposit is an up-front cash payment to protect the dealer from damage to the vehicle and is refunded to the borrower at the end of the lease.

security deposit

what terms are negotiated

set working conditions, wages, overtime rates, hours of work and benefits

deductions (vs withholding)

social security tax and federal income tax; they are required by law and you can go to jail if you do not pay them

which union is the biggest

teacher's union

why is profit sharing good

the more the company makes, the more money you get; you can make a lot of money this way

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

A secured loan is a loan that is backed by some form of collateral provided by the borrower.

secured loan

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

False

There is a negative correlation between the number of years in college and earnings.

False

Which of the following is something that should not be a consideration when choosing a health care plan?

the coverage the insured individual and family already receive in auto insurance

what did Bernard L Madoff run

a ponzi scheme

Liability

a responsibility, an obligation, or a debt

flextime

a work schedule that allows employees to choose their working hours within defined limits

Auto insurance is insurance purchased by the owner of a vehicle to cover losses due to traffic accidents or theft.

auto insurance

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

Greg invests $2,680 in a CD paying 7.0% interest, and $3,060 in an online savings account paying 4.5% interest. How much more interest will the CD have earned than the savings account after 1 year? a. $25.90 b. $49.90 c. $380.00 d. $499.00

b

All of the following are considerations in analyzing risk except which answer choice?

c. interviewing the manager on duty during a disaster

what is an extremely high cost for children that companies offer discounts for

child care

what is the number 1 reason for a leave of absence

children

examples of paid holidays

christmas, thanksgiving, 4th of july, labor day, memorial day, etc.

Collateral is an asset that a borrower pledges to a lender in order to secure a loan.

collateral

what is the main function of a union

collective bargaining

what is a leave of absence?

employers temporarily allow their employees to leave their jobs and return to their job at a later time

A lease is a contract stating, from one individual to another, the terms of use of real or personal property for a designated period of time in return for payment or other forms of compensation.

lease

what insurance is most involved with fraud

life insurance

The money factor is the interest rate the lease is based upon. It is computed by dividing the annual percentage rate by 2400.

money factor

incentive pay

money offered to encourage employees to strive for higher levels of performance

when can you receive your salary

monthly (very unlikely), twice a month, every 2 weeks, weekly

withholding

optional deductions that benefit you

An unsecured loan is a loan that is not backed by any form of collateral.

unsecured loan

An unsubsidized student loan is a federally guaranteed loan that accumulates interest and defers payment till 6 months after graduation.

unsubsidized

how long do strikes last

until they vote to end it

Vehicle registration is the process of registering a vehicle with a government authority.

vehicle registration

what does vested mean

when an employee becomes entitles to their full retirement amount after a period of time

profit sharing

when an employee can receive a portion of the company's profits at the end of the corporate year

why is telecommuting good

working from home is convenient and gives worker felxibility

why do companies use job sharing

you only need to provide health insurance to full-time employees

what happens when you are retired and have a pension?

you receive a monthly check from your pension

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

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

Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6.25%. Vanessa's monthly payments are $1,595.85. How much was Vanessa's down payment? a. $9,314.45 b. $16,781.25 c. $40,275.00 d. $53,040.00

A

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

Mr. and Mrs. Donahue want to buy a home valued at $365,000. If they have 21.5% of this amount saved for a down payment, how much will their home loan be? a. $78,475 b. $286,525 c. $341,275 d. $357,153

B

Natalie charges $1,490 per month to rent each of her three rental houses. Natalie must pay $5,850 in maintenance costs per house per year. If all three houses are occupied, how much money will Natalie earn over seven years? a. $334,250 b. $252,630 c. $84,210 d. $375,480

B

Noah has just purchased a previously owned home. He put $5,000 towards a down payment and took out a $65,000 mortgage. Noah knows that his older home will need maintenance right away and wants to budget enough for this coming year for unexpected expenses. When estimating costs for home repair and maintenance, a good estimate is to budget 1% of the purchase price of a house. What would be a good yearly estimate of repairs and maintenance for Noah's home? a. $1550 b. $700 c. $650 d. $150

B

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

B

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

False

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

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

Rollin and Sandra want to buy a home priced at $265,000. They plan to finance this amount less the down payment required. Rollin and Sandra have a combined annual income of $83,600 and have saved $53,000. They have a recurring debt of $582. Use a 20% down payment and the 28/36 ratio to determine if Rollin and Sandra are eligible for a loan. What would you advise them to do if they are not eligible?

Rollin and Sandra will not be eligible for a loan. Since 20% of $265,000 is $53,000, they have the required down payment.The recurring debt they have exceeds the allowable amount of $557. Rollin and Sandra should work on reducing their recurring debt.

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?

NOT 6

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

Peter and Marcia, both age 34, can pay $650 a year each on life insurance. About how much is the face value of the largest combination of policies they can buy without spending more than a combined $1,300 annually?

- B .

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

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

job sharing

a job design in which two people share one full-time position

what is telecommuting

when employees use technology to work from home

Which of the following is not a fee that contributes to the initial cost of leasing a car?

NOT C OR D

Describe the key features of a financial record keeping system.

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

Which of the following would be a good argument to buy rather than lease?

D

Gross pay

Gross pay is the amount of income before taxes or expenses.

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

If you wish to calculate the interest on an investment with a rate of 3.58%, what number will you plug into your equation? a. 3.58 b. 0.358 c. 0.0358 d. 0.00358

C

Why do interest rates on loans tend to be lower in a weak economy than in a strong one?

c. In a weak economy there is less demand for credit, so the price drops.

What is the difference between a full warranty and a limited warranty?

- D .

Which of the following is something that will not affect your homeowners insurance premium?

- A .

In a fee-for-service health insurance plan with a $6,500 annual deductible, _____.

- C .

Leasing a car for a five-year period usually costs about the same as a five-year loan because __________.

D

commision

pay for reaching sales goals

SEC

the FBI of the stock market;

seniority

the length of time on the job

If the lowest price in the past year occurred 48 days ago, find the approximate average change per day since then.

$0.72

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?

$0.89

Ben's broker charges a commission of $125 for every $1,000 of stock bought or sold. Ben bought 442 shares of Xyx Motors when the share price was $15.67, and sold them when the share price was $23.14. How much profit did Ben make?

$1,157.48

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?

$1.87

In addition to general medical services, Holly would like to add dental and vision options to her health care plan. The monthly premium for her medical insurance is $345 of which her employer pays 65%. Her employer also offers to pay 50% of the monthly dental premium of $38 and 75% of the $23 monthly premium for the vision plan that is offered. If Holly opts for both the dental and vision options in addition to her regular health insurance, what will her total monthly premium be?

$145.50

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?

$150 per month

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

$174.66

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

$18.69

Cassie's broker charges her a commission of $4.25 for every ten shares of stock bought or sold. Cassie buys 92 shares of Hyren Airlines, 130 of Giaco Household Goods, and 126 of Iwad Records. Hyren Airlines costs $13.70 per share, Giaco Household Goods costs $3.28 per share, and Iwad Records costs $8.06 per share. To the nearest dollar, how much money did Cassie spend in total?

$2,850

Krista and Nick put a down payment of 20% on the purchase of their house, and then financed $200,000. What was the purchase price of the house?

$250,000

Ted is looking over his spending pattern for the past week to try to determine how much money he had on Sunday. This is Ted's spending pattern: Day Debit ($) Credit ($) Monday 112 --- Tuesday 141 18 Wednesday 56 --- Thursday 28 70 Friday 22 42 Saturday 16 88 If the bank charges Ted an overdraft fee of $25 every time he overdraws his account, and Ted overdrew his account on Wednesday but not on Friday, which of the following is a possible amount of money that Ted could have had in his account last Sunday? Assume that the only debits and credits not listed are overdraft fees.

$280

The health care Jimmy's employer offers is a fee-for-service plan in which Jimmy and his family must pay for $12,500 in health related services in a calendar year before the insurance company begins to pay. Jimmy and his family have several health related issues that demand $685.00 each month. If one of Jimmy's children were to become seriously injured at the end of the year, how much would the related health costs need to be in order for the insurance company to assume responsibility?

$4,280.00

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

$458.57

The extended warranty on a ceiling fan is 18% of the purchase price. If the price of the fan is $140, how much is the warranty?

- B .

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

$600.99

Andrew is insured by Leroux Health Insurance under Plan A. The plan includes a $248.00 monthly premium with a $5,500.00 annual deductible (not including co-pays). Andrew is severely asthmatic. He visits his primary care physician twice a month and his asthma specialist once a month. He has two separate generic inhalers that need to be refilled on a weekly basis. To make matters worse, Andrew has recently been diagnosed with appendicitis and is scheduled to have his appendix removed in the morning. The procedure will cost about $1,500. Considering his frequent doctor visits, many prescription refills, and his appendix removal in addition to his monthly premium, how much will Andrew pay in health care related fees this year?

$7,716.00

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

$74

Rachel bought 1,500 shares of Cawh Consolidated Bank at a price of $24.85 each. As the price climbed, she sold off parts of her holdings. She sold off 250 shares at $28.32 apiece, she sold 800 of her shares at $33.60 apiece, and she sold off the remainder of her shares at $39.94 apiece. If Rachel's broker charges a commission of $65 per $1,000 of stock bought or sold, how much profit did Rachel make, to the nearest dollar?

$8,859

A new cell phone has a purchase price of $225. With the extended warranty, the total cost comes to $289. What percent of the purchase price is the price of the warranty?

- A .

A set of floor speakers costs $466. If the extended warranty on the speakers costs 32% of the price of the speakers, how much does the extended warranty cost?

- A .

A toaster oven costing $130 offers an extended warranty for 25% of the purchase price. If the local repair shop will fix a toaster oven for $8, how many times must the toaster oven break in order for the warranty to pay for itself?

- A .

A lawnmower costs $284, and the six-year extended warranty on the lawnmower costs 17% as much as the lawnmower itself. What is the effective price per year of the extended warranty?

- C .

Kurtis had purchased a renters insurance policy for his new apartment at an annual premium of $588.00. The items covered in the policy included a bicycle kept locked to the railing in front of the apartment. When the bicycle was stolen, the insurance company covered the replacement cost of the bicycle, but told Kurtis that, because of the loss, his premium would increase by 35% if he wished to continue with the policy. What would Kurtis' new annual premium be if he chose to keep the policy.

- D .

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.

The Johnsons are buying a house that costs $210,000 and can afford a 20% down payment. If the Johnsons want the lowest monthly payment, which loan option would you recommend?

30 year fixed, 20% down at a fixed rate of 6%

what is the retirement plan put into place for companies that don't offer pensions

401k/ 403b

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

market index

A market index is a statistical number that measures the change of assets sold on the open market.

market trend

A market index is a statistical number that measures the change of assets sold on the open market.

Which of the following would be a good reason to place your money into a savings account?

A savings account earns interest

Preferred stock

A share of ownership with no voting rights.

Common stock

A share of ownership. Holders of common stock exercise control by electing a board of directors and voting on corporate policy.

stock market

A stock market is a public market for the trading of company stock and derivatives at an agreed price.

Sarah, age 29, makes $45,000 a year and wants to buy a 15-year term policy that would replace seven years of her salary. The annual premium rate (per $1000 of face value) for her age group is $1.46. What is Sarah's premium, to the nearest dollar?

A. $460

If monthly payments are made for 30 years, find the value for n in the following future value ordinary annuity formula.

A. (360)

When shopping for life insurance, you should look for:

A. A company with a low premium rate and a good rating.

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.

After expenses, Kim will need an additional $778.31 to start her company.

Withholding allowances

Allowances that reduce the amount of taxes levied on income for both the individual and company is commonly referred to as withholding allowances.

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.

Asset

An asset is an item that is owned and has value.

If quarterly payments are made for 15 years, find the value for n in the following present value ordinary annuity formula.

B. (60)

Lamar, age 43, wants to pay no more than $1,000 a year in life insurance. If the annual life insurance premium rate (per $1000 of face value) is $12.59, what is the largest whole life policy he can buy without spending more than $1,000 annually?

D. $79,000

Your children are 3 and 5 years old now, and you want an inexpensive policy that covers your family at least until the youngest is 22. Based on the given information, what is the best policy to buy?

D. 20-year term policy

Richard has $652 in his account and is planning a road trip. He looks at how expensive hotels and sightseeing costs are in certain cities, planning accordingly: City Cost ($) Detroit 196.87 Pittsburgh 180.32 St. Paul 102.87 Cincinnati 155.81 Richmond 211.86 When Richard makes the calculations, he finds he does not have enough money to visit each city. What is the cheapest city that Richard can drop to avoid overdrawing his account?

Detroit

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.

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?

Essential (flexible) expense

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

Any student can qualify for a subsidized Stafford loan, regardless of financial need.

F

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

F

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

F

A commission employee derives their income from the number of items or goods that they produce.

False

Describe some of the characteristics of federal student loans.

Federal student loans are funded by the federal government. They usually offer a lower interest rate than private loans. Federal student loans are usually deferred until graduation, meaning that the student does not owe payments until after graduating.

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

Which of the following statements describes a part of a reasonable method for increasing the amount of savings in the budget.

Find a way to reduce "Non-Essential Expenses" in the monthly budget.

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.

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?

Having a savings account gives individuals the ability to borrow money from members in the community

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: 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.

His net pay will increase by $22.61.

Choose the circumstances in which a debit card can be used. I. Point-of-sales transactions II. ATM withdrawals

I and II

Which of the following statements best gives the reasons that a data usage bill for a smart phone is an essential (variable) expense?

It is an obligation to pay, but the spender has some control over its amount.

Jared wants to purchase his favorite barbecue sauce. The barbecue 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.

Jared will get the better deal buying one 32 ounce bottle.

Which of the following is not an advantage of buying a home? Tax savings Potential Economic Gain Pride in Ownership Lower Initial Cost

Lower Initial Cost

Choose the most appropriate action for making a large purchase.

NOT a. use a credit card with attractive perks and high interest

Olivia bought a $1,874 sprinkler system with her credit card. Her credit card has an APR of 10.31%, compounded monthly. She made no other purchases on the card until the sprinkler system was fully paid for, which took four years of identical monthly payments. Over the eight years that Olivia kept the sprinkler system, it used an average of $2.11 in water per week. After eight years, what percentage of the total lifetime cost of the system did the original price make up? (Round all dollar values to the nearest cent.)

NOT c. 38.25%

As a part-time employee, Rachel does not qualify for any benefits from her current employer. Seeing a need for a health care program, Rachel went shopping for health insurance and is trying to decide between two options with a national health insurance provider. The benefits of each option are outlined in the tables below. The first option is a fee-for-service plan with a $7,500 deductible. Rachel must pay the deductible amount in health-related costs (not including co-pays) before the insurance company will contribute. This plan costs $225.00 per month and requires co-pays for most standard healthcare costs. The second option is an HMO. It is significantly more expensive at $630 per month, but has no annual deductible. The standard co-pays are also less than those in the other option. Rachel is a young lady with very few health care requirements. She anticipates one monthly visit to her primary care physician, and one annual visit to her allergy specialist. She has two generic prescription allergy medicines that need to be filled twice a month. If Rachel is able to stay healthy the entire year and does not accrue any additional health care costs, which of the following statements is true for her situation?

Rachel's health care needs will cost less under Option 1 if she is able to avoid additional health care costs.

Sandy is trying to reconstruct her spending pattern from July. She knows that she had $277 in her account on July 1, but after that, her receipts and balance statements are all scrambled. Here are Sandy's records: Date Transaction Type Amount ($) 7/26 Purchase 86 7/25 Deposit 76 7/4 Purchase 137 7/6 Deposit 90 7/10 Purchase 131 7/9 Purchase 145 7/15 Deposit 152 7/19 Purchase 137 Assuming that this is a complete, if scrambled, record of Sandy's July spending and that any overdraft fees incurred do not affect the running total, how many times did Sandy overdraw her account in July?

Sandy overdrew her account more than twice.

Jim and Stephanie just got married and are thinking about changing their health care insurance plans to be more affordable. Currently, both Jim and Stephanie are insured through their own employers. Jim's employer pays 42% of his $378 monthly premium. His insurance plan will also pay for 23% of the $345 premium for additional beneficiaries. Stephanie's employer pays 35% of her $298 monthly premium but offers to pay an extra 10% of her premium for each beneficiary Stephanie adds to her plan. Her employer would then pay 30% of the $349 premium for each additional beneficiary. Which would be the most economical way for the couple to purchase health insurance? (the additional 10% is a trick)

Stephanie should add Jim to her health care plan.

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

T

market value

The market value is the price at which an item is sold, purchased, or traded at on the open market.

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

Thursday

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

True

Frank has $66.50 in his account on Sunday. Over the next week, he makes the following changes to his balance via deposits and purchases: Day Debit ($) Credit ($) Monday 60.33 80.75 Tuesday 54.45 --- Wednesday 49.20 15.00 Thursday 35.40 --- Friday 16.85 75.00 Saturday 80.56 --- On what day does Frank first get charged an overdraft fee?

Wednesday

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

When your income is $350 a month, but your expenses total $400 a month.

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

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

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.

A lender estimates the closing costs on a home loan of $90,000 as listed below. Closing Cost Charge Loan origination $180 Title insurance $365 Attorney's fees $795 Inspection $300 Recording fees $120 Escrow $980 The actual closing costs were: Closing Cost Charge Loan origination $180 Title insurance $340 Attorney's fees $830 Inspection $375 Recording fees $150 Escrow $1,000 Evaluate the lender's good faith estimate. a. The lender made a very good estimate; it was within 0.25% of the actual closing costs. b. The lender made a fairly good estimate; it was between 0.25% and 0.5% from the actual closing costs. c. The lender made a somewhat poor estimate; it was between 0.25% and 0.5% from the actual closing costs. d. The lender made a very poor estimate; it was between 0.5% and 0.75% from the actual closing costs.

a

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

a)$96,600

Of the following, which statement or statements accurately reflect a way in which credit can be safer than cash? I. If your credit card gets stolen, you can cancel it and get your money back. II. It is harder to lose a single credit card than a large number of bills. III. If a merchant does not honor the agreement, you can call the credit company and dispute the charges.

a. I and III

Julius currently pays the minimum monthly payment of $34.15 on his credit card, which has a balance of $1,289. His credit card has an APR of 20%. If Julius wants to pay off the balance in 12 months, determine the monthly payments he needs to make. Choose the following modification with the least cuts to his current expenses that will allow Julius to pay off his credit card balance in 12 months.

a. Julius can eliminate $31 from Entertainment and $55 from Food/Clothes.

A lender will verify and carefully consider your income before approving you for a loan because

a. they need to be sure you will be able to pay the loan back

Which of the following health care programs will wait to pay their share of medical coverage until after treatment is provided?

fee-for-service plan

An installment plan is where periodic payments are made by a borrower over the lifetime of a loan.

installment

group insurance plans

insurance provided to you by your employer

The difference between the amount paid over the lifetime of a loan, that is compounded n times in a given year, and the principal amount borrowed is defined as the interest.

interest

why do companies pay in commision

it is a self-motivating technique which makes your employees work harder

do all companies offer overtime

no

is it legally required to be in a union

no but it is recommended

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

not C

Health insurance helps to protect you from financial loss by _____.

paying for some or all of your medical costs while you are insured.

what is a restriction for a leave of absence

pregnancy

what do you call an organization that has like minded people but is not considered a union

professional organization

what allows certain employees to benefit from company's profit

profit sharing

in order to prove company travel expenses what do they require?

receipts

Repayment is the process of paying back borrowed money.

repayment

The residual is the value of the car at the end of the lease term.

residual

what is the difference between commission and straight commission

straight commission is just commission but commission means you get a salary and commission

strikes vs picketing

strikes are not doing an action and they do not benefit anyone; picketing is workers of standing in front of or near a workplace to call attention to their grievances

what is a turnover rate

the amount of people who quit or get fired in a period of time

salary

the annual amount of money you get paid

insider trading

the buying or selling of a security based upon information that is not publicly available

pension plans are funded by who

the employer

employee services

the extras that companies offer to improve employee morale and working conditions

what is employee morale

the level of satisfaction within workers

what is collective bargaining

the process of negotiating a work contract for union members

net pay

the total amount of pay you receive after your deductions have been subtracted

cons for commision

there is no guarantee that you will be paid; if you don't sell anything you don't get paid

A title is a document provided by a qualified source stating a legal claim of ownership over real and personal property.

title

gross pay

total amount you earn before any deductions are subtracted

what is seniority used to determine

transfers, promotions, and vacation time according to most union contracts

triple time

triple your pay