4.

Glen is comparing three investment accounts offering different rates. Account A: APR of 5.80% compounding monthly Account B: APR of 5.90% compounding quarterly Account C: APR of 5.85% compounding daily Which account will give Glen at least a 6% annual yield? (4 points)

	Account A
	Account B
	Account C
	Account B and Account C

5.

Jakob has a previous balance of $861 on a credit card with a 20.8% APR compounded monthly. If he made a payment of $73 this month, what is the new balance on his credit card? (4 points)

	$1,040.09
	$967.09
	$802.92
	$788.00

6.

Larson uses his credit card to purchase a new video game system for $519.82. He can pay off up to $225 per month. The card has an annual rate of 15.4% compounded monthly. How much total interest will he pay? (4 points)

	$81.39
	$4.72
	$11.57
	$13.94

7.

Newton uses a credit card with a 18.6% APR, compounded monthly, to pay for a cruise totaling $1,920.96. He can pay $720 per month on the card. What will the total cost of this purchase be? (4 points)

	$2,458.98
	$2,278.26
	$1,978.02
	$1,920.96

8.

Use the details of Patti's new credit card to answer the question that follows.

APR	19.1% compounded monthly
Grace Period	30 days
Minimum Payment	3.5% of the remaining balance or $10, whichever is higher

Patti charged $425 to her credit card last month. What is the first minimum payment she must make? (4 points)

	$14.88
	$81.18
	$10.00
	$42.50

9.

In which situation would it be better to use cash instead of a credit card? (4 points)

	purchasing groceries
	purchasing a television
	major car repairs
	making hotel reservations

10.

Which piece of information is not found in the account history section of a credit report? (4 points)

	minimum payments
	late payments
	credit limits
	current balances

11.

Tali has opened two credit cards in the last year. Use the information on each credit card located in the table below to answer the question.

Account Name	Account Number	Date Opened	Balance	Past Due	Account Status	Credit Limit
Credit Card A	xxxx	3/4/11	$4,198.60	$0.00	PAYS AS AGREED	$8,500
Credit Card B	xxxx	5/5/11	$3,114.82	$0.00	PAYS AS AGREED	$9,000

What is Tali's overall debt-to-credit ratio? (4 points)

	34.61%
	84.01%
	41.79%
	49.40%

12.

Choose the fragment which best completes the following sentence. If you have a high credit score, you are more likely to (4 points)

	receive a lower interest rate
	receive a higher interest rate
	have your debt submitted to a collection agency
	be turned down for a loan

13.

Use the table below showing the different types of savings accounts a bank offers to answer the question that follows.

	Standard Savings	Money Market Savings	High Yield Savings	CD
Opening Deposit Requirement	$25	$100	$25,000	$2,500
Interest Rate	Variable	Variable	Variable	Fixed
Option to Write Checks		yes	yes
Account Alerts	yes	yes	yes	yes
Features	Up to 6 withdrawals per month	Up to 3 withdrawals per month	Up to 3 withdrawals per month	Penalty if money withdrawn before maturity
Monthly Fee	$3 per month unless you maintain a $300 balance	$10 per month unless you maintain a $3,500 balance	$25 per month unless you maintain a $25,000 balance	none

Christina has $150 to open a savings account. She anticipates withdrawing money from her savings account regularly. Which account is the best choice for Christina? (4 points)

	Standard Savings
	Money Market Savings
	High Yield Savings
	CD

14.

Linda owes $3,861 on a credit card with a 22.3% interest rate compounded monthly. What is the monthly payment she should make in order to pay off this debt in 2 years, assuming she does not charge any more purchases with the card? (4 points)

	$160.88
	$200.87
	$361.93
	$867.93