1. Donna estimates that her take-home pay for the coming year will be $1420 per month. She expects total monthly expenses to be as follows: housing and utilities, $800; food, $200; auto, gas, and insurance, $220; credit card payment, $60; and other expenses $100. The balance on her credit card is $4300, and she currently pays 18 percent interest on this balance. Donna would like to reduce her credit card debt. If she decides to budget all of her net monthly cash flow to this goal, how long will it take (in months) to pay off her credit card? A) 61

B) 43

C) 70

D) 33

2. Your bank pays a nominal rate of 4.70% interest on a savings account. If the interest is compounded monthly, what is the annual percentage yield (APY) of this account? A) 4.70%

B) 5.10%

C) 4.80%

D) 4.84%

3. The purpose of reconciling a budget is to:

A) adjust income and spending so that your expenses do not exceed your income.

B) implement the budget plan.

C) balance your assets to your debt and net worth.

D) adjust income so that your surplus does not exceed your budgeted savings.