QUESTION 1 The median household income is estimated to be approximately $60,000 annually. This total may be for one or two wage- earners in the family. A typical income tax, including federal state, social security, and Medicare may total 23% of the gross pay. George, who earns an average annual wage, wants to begin saving for retirement immediately. If he saves pre-tax into an approved retirement account, no taxes will be deducted from the saved amount until he retires. If George saves 7% of his gross annual pay into the retirement account, what is the gross pay amount on which George will pay taxes? 2.553,000 6.567,000 C.564,200 d. 555,800 QUESTION 2 Taka rented an apartment to reduce costs. He does not have to pay for water, lawn mowing real estate taxes, or homeowner's insurance. Someone broke the $400 front door and stole his 5600 stereo. For how much of the loss will his landlord be responsible? * 5400 6.5600 C 51000 od. None. QUESTION 3 The median household income is estimated to be approximately $60,000 annually. This total may be for one or two wage- earners in the family. A typical income tax, including federal, state, social security, and Medicare may total 23% of the gross pay. Barb has the average household income. What amount should she use for monthly income in her budget? $5,000 560,000 $3,850 $4,360 QUESTION 4 Neil's truck holds 38 gallons of gas. Gas is $3.75 per gallon. Gas has risen 17% in one year. What is the new cost to fill Neil's truck from empty? 1.5166.73 6.5166.67 C 5153.56 d. 5148.96 QUESTION 5 Anita had $105 in late fees on her credit card statement over the last 6 months. Each late fee is $35. How many late payments did Anita make? OOO QUESTION 6 Jordan has student loan debt and is worried that it will reduce that amount that can be borrowed for a home. While the percentage of income for a house payment is not a problem, but there is also a maximum total debt percentage that is allowed, including car payments, student loans, credit cards, and house payments. Jordan earns $25 per hour and works 40 hours per week all year. There is a program that allows up to 42% of gross pay as a debt load. What is the maximum debt that Jordan can have per month? 8. $1,820 b. 51,940 52,128 d. 52,400 QUESTION 7 Peter bought 100 shares of his favorite gaming stock for 514 per share. He was paid a dividend of $.50 per share each year for three years. At the end of three years, he sold all his shares for $17.25 each. What is the total return for Peter? a. $475 b.$325 C23% d. 30% QUESTION 8 Charlie pays $175 per month for his car insurance. Charlie has been offered a 5% savings if he pays the annual premium at one time. What would Charlie's new premium be if he accepts the offer? 4.5166.25 0.51,662.50 C. 51,995.00 d. 52,280.00 QUESTION If Andre has a child and adds another dependent to his tax form for withholding, the company will withhold a lower amount of income tax. Estimate what will happen to Andre's net pay. It will a go up. bigo down stay the same. d. There is not enough information to answer the question QUESTION 10 You are going to loan money to your brother-in-law. He is borrowing $1000 for six months. You have learned that the value of money may go down and buy less in the future. You decide to charge your brother-in-law an interest rate to make up for the loss in value over time. You do some research and decide that an annual rate of 6% is fair. How much interest will you charge for the six-month loan? . $60 b.56.00 C. 530 d. $50 QUESTION 11 Neil's truck holds 38 gallons of gas. Gas is 53.75 per gallon. What is the total cost to fill Neil's truck from empty? 1.538.75 b.131.25 C. $137.50 d. $142.50 QUESTION 12 Loan guidelines for many home loans limit the amount a person can borrow to a monthly payment as a percentage of their gross income. If Micah can borrow so that his house payment cannot exceed 28% of his income and he is approved for a maximum of $1800 per month house payment, what is Micah's approximate monthly income? 6.55,400 b. 56,009 C. 56,429 d. 56.249 QUESTION 13 Josh has a credit card that charges 18% interest on the unpaid balance after the 25th of each month. Josh paid 565 on the credit card and left a balance of $3860. What will be the interest charge on next month's credit card statement? 2.569.40 b. $694.00 55.79 d. 557.90 QUESTION 14 If the average job candidate engages in 15 job interviews before being hired and Maria can attend no more than two interviews per day, how many days must Maria plan to attend interviews? a. 3 jo QUESTION 15 Which savings plan, paying 6% and compounded quarterly, will result in earning the most interest for you? (Use a financial calculator, an online finance calculator, or www.bankrate.com. Use the savings calculator that allows compounding selection. Note the quarterly compounding.) 0.$50 per month for 40 years. b.$100 per month for 30 years. $200 per month for 20 years. d. 51000 per month for 10 years. QUESTION 16 Charlie pays $175 per month for his car insurance. What is his annual premium? a. $175 5.51,750 652,100 d. 52,400 QUESTION 17 The median household income is estimated to be approximately $60,000 annually. This total may be for one or two wage-earners in the family. A typical income tax, including federal, state, social security, and Medicare may total 23% of the gross pay. If Ellen earns the average household income and pays the typical taxes, what is Ellen's net annual pay? 0.542,600 . $46,200 C 547,700 d. 543,700 QUESTION 18 Amelia needs to take some money out of her 401k and does not qualify for an emergency or waiver of penalties. She will withdraw $4,500 and be taxed at 20%. What will be the net amount that Amelia receives after tax and the standard penalty? .54,050 6.53,150 OC 3,240 d. 53,600 QUESTION 19 Which savings plan, paying 6% and compounded quarterly, will result in earning the least interest for you? (Use a financial calculator, an online finance calculator, or www.bankrate.com. Use the savings calculator that allows compounding selection. Note the quarterly compounding.) 1.550 per month for 40 years. b. 5100 per month for 30 years. $200 per month for 20 years. d. 51000 per month for 10 years. O QUESTION 20 According to U.S. News, the average cost of college (including universities) tuition and fees varies widely. In-state colleges average $9,716 while out-of-state students pay $21,629 for the same state college. Private colleges average $35,676. The local community college averages approximately $3,726. On-campus housing and meals, if available, can add approximately $10,000 per year. Question: If in-state tuition and fees increase 3% per year, what will be the annual cost to attend the college after two years? 510,007 b. 510,299 510,308 d. There is not enough information to answer the question QUESTION 21 Your neighborhood bank pays 1.5% on a savings account but only calculates that and adds it to your account one time per year. If you deposit $450 for one year how much interest will be paid to you? 3.5675.00 b. 567.50 C. $6.75 d. 5.67 QUESTION 22 Terry and Terri did not know a lot about each other before they got married so they did not find out that one of them has poor credit. The interest rate will be higher because of a low credit score. The new term is 4.9% for a 30-year loan. The home price is $200,000 and they must pay a 20% down payment. What is the total amount that the couple will pay for the $200,000 home, including down payment (rounded to the nearest dollar)? - $382,125 b. 5422,125 $305,700 d. 5345,700 QUESTION 23 Barb knows that a budget, or spending plan, will require her to fill in the budget worksheet with numbers. What complete document list will provide the numbers most helpful in filling out her household monthly budget? a. Pay stubs, monthly rent check, automatic bill pay register, last year's emergency surgery bill. b. Pay stubs, car loan balance and monthly payments, bank statements, savings plan. Last year's tax return, vet bill, grocery budget, last month's baby shower expenses. d. Pay stubs, utility bills, savings account balance. QUESTION 24 Mike has an insurance policy that pays 90% of the replacement cost of personal property damaged in a fire. A fire destroyed a stove that Mike paid $350 for but it was now worth only 590. A new one would cost $400. How much will Mike's insurance company pay? $315 $350 QUESTION 25 The median household income is estimated to be approximately $60,000 annually. This total may be for one or two wage- eamers in the family. A typical income tax, including federal, state, social security, and Medicare may total 23% of the gross pay. If a family earns 150% of the average annual household income what is their annual household income? 8.590,000 b.569,000 6. $150,000 d. 530,000