1) Which of the following payments is an example of secured debt? A) Car loan payments

B) Groceries

C) A bus ticket

D) A pair of shoes

2) Riaz obtains a loan of $100,000 to purchase a house. The conditions of his loan state that he will repay the principal and interest through fixed installments.

Which of the following statements is true about Riaz's situation?

A) Riaz's future earnings may not be used for collateral even if he defaults on the repayment of his loan.

B) Riaz's installment payments will change each month based on what he can afford.

C) The principal that Riaz owes will not change from one month to the next.

D) The interest rate applied to Riaz's loan will change periodically throughout the loan term.

3) Asher is married and has an annual income of $106,000. He files jointly and has a taxable income of $82,000. The tax brackets and tax rates are as follows: $0-$19,050: 10% $19,050-$77,400: 12% $77,400-$165,000: 22%

Calculate Asher's tax and the effective tax rate.

A) Asher pays $7,002 in tax and has an effective tax rate of 7%.

B) Asher pays $18,040 in tax and has an effective tax rate of 17.50%.

C) Asher pays $9,919 in tax and has an effective tax rate of 9.36%.

D) Asher pays $23,320 in tax and has an effective tax rate of 23%.

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