If a household has $195,000 of assets and $75,000 of liabilities, then their net worth would be $125,000.

Group of answer choices

True

False

Flag question: Question 12

Question 122 pts

Samantha and Eric Bloukowski have total take-home pay of $8, 350 a month. Their monthly expenses total $5, 400. Calculate the minimum amount this couple needs to establish an emergency fund.

Group of answer choices

$16,200

$25,050

$41, 250

$10,800

Flag question: Question 13

Question 132 pts

When preparing her monthly budget, Karrin Kent has total spending of $4,600. Each month she pays $1,200 in rent, $60 for cable television and Internet service, and $240 for her auto loan.

What percentage of her budget goes for these fixed expenses?

Group of answer choices

6 percent

12 percent

27 percent

33 percent

40 percent

There is not enough information to determine the answer to the question.

Flag question: Question 14

Question 142 pts

Interest earned is calculated by multiplying the principal times the time value of money.

Group of answer choices

True

False

Flag question: Question 15

Question 152 pts

When you buy life insurance, you are making a contract with the company issuing the policy where you agree to pay a premium periodically and the company agrees to pay a death benefit.

Group of answer choices

True

False

Flag question: Question 16

Question 162 pts

Risks associated with many financial decisions are easy to identify and evaluate.

Group of answer choices

True

False

Flag question: Question 17

Question 172 pts

Karen and Mike currently insure their cars with separate companies paying $700 and $900 a year. If they insure both cars with the same company, they would save 10 percent on the annual premiums.

What would be the future value of the annual savings over ten years based on an annual interest rate of 4 percent?

Group of answer choices

$1, 920.96

$19,209.60

$2,368.00

$5,872.64

None of the above are correct.

Flag question: Question 18

Question 182 pts

$500 on deposit at 6% for 6 months would earn $20.

Group of answer choices

True

False

Flag question: Question 19

Question 192 pts

If you switch life insurance policies, you will automatically still be insurable.

Group of answer choices

True

False

Flag question: Question 20

Question 202 pts

A family has a net worth of $156,000 and liabilities of $167,000, what is the amount of their assets?

Group of answer choices

$11,000

$156,000

$167,000

$323,000

None of the above are correct.