1. _____ is exchanging one good for another without using money. (1
point)Credit
Barter
Negotiating
Brokering
2. A _____ has to be paid in full on the due date. (1 point)charge card
credit card
debit card
check card
3. The _____ is the original amount owed on a loan. (1 point)loan due
interest
available balance
principal
4. APR is used to calculate the _____. (1 point)loan amount
interest accrued
principal
future earnings
5. To compute how one currency compares to another, you must use the _____.
(1 point)negotiated rate
exchange rate
agreement rate
bartered rate
6. When you owe money to another lender, you are a _____. (1 point)debtor
lendee
loanee
creditor
7. A _____ takes money directly from a checking account. (1 point)charge
card
debit card
credit card
cash transaction
8. When building a credit history, you should have a credit card with a _____,
and you should pay it in full, on time, every time. (1 point)High interest
rate
High credit limit
Low interest rate
Low credit limit
9. FICO is your ____. (1 point)credit profile
credit history
credit score
debt ratio
10. The house in relationship to its mortgage is considered _____. (1
point)collateral
debt
credited
equity
11. _____ is considered fully transferable. (1 point)Credit
A debit card
A charge card
Cash
12. The higher your credit score, the _____. (1 point)lower your savings
interest rate
higher your car loan rate
lower your mortgage interest rate
higher risk you are to a creditor
13. An example of discretionary spending is _____. (1 point)rent
mortgage
groceries
brand name khakis
14. You buy some living room furniture. The coffee table costs $189.99, the
loveseat costs $249.95, the sofa costs $493.68, and 2 chairs cost $98.75 each.
Sales tax is 7.25%. How much is your total purchase? (1 point)$1,032.37
$1,213.13
$1,107.22
$1,131.12
15. If gold is currently trading at $600.00/oz and you have a gold coin worth
$5,400.00, how much does the coin weigh? (1 point)9oz
4.5 oz
18 oz
48 oz
16. Your parents purchase a computer for $1,257.00 plus 6% sales tax. They
decide to finance it through the store’s 0% program for 6 months. The terms
state that they pay nothing until the 6 months are over. When they receive the
bill, they forget to pay it and are assessed a late fee of $45.00 plus the
interest accrued to that point at a 16.75% APR. What is the accrued interest
after 6 months? (1 point)$109.02
$115.56
$223.18
$111.59
17. You have returned from a trip to Europe and still have €128 euro. How much
in U.S. dollars should you receive if the exchange rate is $1 USD = €EUR 0.6991?
(1 point)$183.09
$89.48
$128.70
$127.30
18. Your parents have $2,745.69 on a credit card with a 12.75% APR. They miss
their minimum payment and there is a late fee of $29.00. How much is their
balance at the beginning of the second month? (1 point)$3,095.77
$2803.86
$3,128.46
$2,774.69
19. The total sale price for purchase at one store is $268.97. The total sale
price at another store is $240.95. You have an additional 10% off coupon for the
second store for purchases over $200.00. How much more would you save by
shopping at the second store? (1 point)$1.12
$32.12
$28.02
$52.12
20. You are paid $7.25/hour. You work 40 hours/week for 2 weeks. Your
involuntary deductions are FICA (7.65%), federal withholding (14%), and state
withholding (7%). How much is your realized income? (1 point)$290.00
$206.91
$580.00
$413.83
21. The original cost of a pair of jeans is $26.49. You buy 3 pairs. The jeans
are on sale for 25% off and there is a 4.75% sales tax. How much will you pay?
(1 point)$62.43
$59.60
$83.24
$79.47
22. You have 105 cowry shells. If a dozen eggs (12 eggs) cost 10 cowry shells,
how many eggs can you purchase? (1 point)12 dozen
8 dozen
10 dozen
5 dozen
23. You buy 2 gallons of milk at $3.29/gallon, 4 gallons of ice cream at
$3.59/gallon, and 5 lbs of strawberries at $0.72/lb. Food sales tax is 3.75%.
What is your total cost? (1 point)$24.54
$25.46
$33.74
$7.89
24. If you have 13% withheld for federal taxes, 9% for state taxes, and FICA
is 7.65%, how much are your involuntary withholdings in all if your gross pay
was $2,785.00 and your net income was $1,794.23? (1 point)$990.77
$1,959.25
$825.75
$531.99
25. Your parents have a credit card with a balance of $2,748.56. The interest
rate is 10.5% APR. A late payment fee of $40.00 is added to the principal if
they pay after 6/1. They make a payment for $300.00 on 6/1. How much interest
did they pay? (1 point)$24.05
$288.60
$24.40
$297.00
26. You order an appetizer for $12.99, 2 entrees for $12.99 each, and a
dessert for $4.29. The sales tax is 6% and you leave a 15% tip based on the bill
with sales tax. What is the total cost of your restaurant outing? (1
point)$44.32
$50.97
$43.26
$52.74
27. You purchase 9.25 gallons of gasoline at $3.15/gallon. You also buy gum
($1.10) and windshield wiper fluid ($4.97). The state has a food tax of 4% and
you give the clerk $30.00 cash. You pay the rest with your debit card. How much
is charged to your debit card? (1 point)$35.21
$5.21
$35.25
$5.25
28. Knowing that you use 275 KWH from 7 a.m.—7 p.m. and 265 KWH 7 p.m.—7 a.m.,
answer the following question using the chart below.
Constant Usage
$0.06624/KWH
Daytimer (most usage between 7 a.m.—7 p.m.)
As long as most power used is from 7 a.m.—7 p.m., then you receive a 20%
discount on power usage between 7 p.m.—7 a.m.
$0.06831/KWH
NightTimer (most usage from 7 p.m.—7 a.m.)
If more than 50% of power usage is outside of 7 p.m.—7a.m., then you have
to pay the Daytimer rate for all power used between 7 a.m.—7 p.m.
$0.06445/KWH
How much have you paid on the NightTimer plan?
(1 point)$35.87
$34.80
$36.89
$35.77
29. Your parents’ original purchase price was $1,550.00 plus 7.25% sales tax.
They enter into an agreement where the interest (11.75% APR) is waived for the
first 12 months provided they make the required monthly payments; otherwise the
interest is accrued from the date of purchase. They miss the first payment due
date. The late fee is $29.00. How much is the interest? (1 point)$195.33
$16.27
$182.13
$15.18
30. Your parents have the following expenses. What should their monthly
estimated expenses be?
Expense Type
Cost
Rent (monthly)
$967.43
Groceries (weekly)
$113.00
Telephone (monthly)
$64.44
Car payment (bi-monthly)
$192.58
(1 point)$1,336.17
$1580.16
$1,890.00
$1,680.24
31. Your parents make a purchase of $2,975.34 using a popular reward credit
card that gives you 1% cash back. If the credit card has a 13.5% APR and you do
not make a payment the first month, how much is the difference between the
interest and reward? (1 point)$29.75
$371.92
$3.72
$33.47
32. Your parent’s mortgage is $231,450 at a 4.65% APR. If they pay $2,236
toward the mortgage each month, how much of the second month's payment is
applied toward the second month's principal? (1 point)$2,678.26
$4,437.34
$1,339.13
$1,344.32
33. You work 35 hours/week for 52 weeks and are given the option to be paid
hourly or to go on salary. In which situation will you earn the most? (1
point)$32,000/year
$18.50/hour
$30,000/year with a 5% bonus
$17.50/hour and a $1,500 bonus at the end of the year
34. What is the total of your parents’ monthly fixed expenses?
Expense
Amount
Rent
$998.50
Groceries (bi-weekly)
$195.40
Charge card
$258.90
Cell phone
$65.78
Name brand khakis for work (store brand optional)
$34.95
(1 point)$1,713.98
$1,518.69
$1,748.13
$1,553.53
35. Your gross pay is $1,843.45. Your involuntary deductions are FICA (7.65%),
federal withholding (9%), and state withholding (6.5%). How much are you allowed
for housing and fixed expenses? (1 point)$516.17
$663.64
$510.01
$396.68
36. Your parents have 3 credit cards. Each has its entire credit line used,
and the credit limits are $1,800.00, $2,600.00, and $3,500.00. Paying off and
closing which card would increase your parents' debt ratio the most? (1
point)$3,500.00 limit
$2,600.00 limit
$1,800.00 limit
The debt ratio remains the same.
Your teacher will grade your responses to questions 37–40 to ensure you receive
proper credit for your answers.
37. You are making several purchases from the B-Better Electronics store. You
can buy from this store online or in a physical store. You have a coupon for 20%
off that can only be used in the physical store and a $20.00 off coupon that can
only be used online. The sales tax of 7.5% only applies to the physical store.
Shipping for the online store is a flat rate of $8.99 or free for purchases over
$75.00. Using the information below, which way of purchasing would save you the
most money?
Be sure to include in your response:
the steps you followed to complete your computations
the choice you made regarding which way to purchase the items.
the total cost of your purchases
The prices for the items if you buy them at the B-Better Electronics store:
Item
Quantity
Original Price
Headphones
1 pair
$14.99/ea
DVDs
4 DVDs
$13.95/ea
CDs
2 CDs
$9.85/ea
Here are the prices for the items if you buy them from the online store:
Item
Quantity
Original Price
Headphones
1 pair
$13.50/ea
DVDs
4 DVDs
$14.99/ea
CDs
2 CDs
$10.99/ea
(6 points)
38. Complete the following transactions and explain how they would appear in
your register.
Your beginning balance on October 1 is $542.89.
You pay Land Electric $43.90 on October 7. (Check #400)
You deposit your paycheck on October 23 ($7.25/hour for 40 hours/wk for 2
weeks with deductions of FICA (7.65%), federal withholding (12%), and state
withholding (8.75%).
You buy $78.54 plus 6% sales tax in clothes from FitRight on October 24 using
your debit card.
Be sure to include in your response:
the steps you followed to complete your computations.
the balance as of October 24
the process for entering the transaction in the registry
(6 points)
39. You are debating whether to buy a new computer for $1,360.00 with a
discount of 10% and sales tax of 6.5% or a refurbished computer with the same
equipment for $1,095.00 and sales tax of 5.75%. If a savings account earns a
3.75% APR, how much do you really save with a refurbished computer if you put
the difference into the savings account for a year and calculate using the
simple interest formula?
Be sure to include in your response:
• the answer to the original question
• the mathematical steps for solving the problem demonstrating mathematical
reasoning
(6 points)
40. Your parents have a credit card with a balance of $3,287.90 at an interest
rate of 14.5% APR. They pay $1,200.00 each month on the due date until the card
is paid off. How many months does it take to pay off the card, and what is the
total amount paid including interest?
Be sure to include in your response:
• the answer to the original question
• the mathematical steps for solving the problem demonstrating mathematical
reasoning
(6 points)