CHAPTER 11 TEST - Personal Finance 04/2016
CHAPTER 11 TEST - Personal Finance 04/2016
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____1.Ernesto Baca is employed by Bigg Company. He has a family membership in his company’s health insurance program. The annual premium is $5,432. Baca’s employer pays 80 percent of the total cost. Baca’s contribution is deducted from his paycheck. What is his annual contribution?
a. / $1,086.40 / c. / $1,125.65b. / $1,567.20 / d. / $1,527.98
____2.Kerri Payne is employed by Caterer’s Central company. She has a family membership in the health insurance program. The annual premium is $6,486. Payne’s employer pays 80 percent of the total cost. Her contribution is deducted from her paycheck. What is Payne’s annual contribution?
a. / $1,358.14 / c. / $1,297.20b. / $1,257.52 / d. / $2,006.00
____3.Stanley McBride is employed by the True Blue company. The PPO annual premium is $7,058. His employer pays 70 percent of the total cost. His contribution is deducted from his paycheck. What is McBride’s monthly deduction?
a. / $200.14 / c. / $56.95b. / $176.45 / d. / $152.87
____4.Leira Otero is employed by Parks Inc. She is on a single plan with a PPO annual premium of $6,009. Otero’s employer pays 75 percent of the total cost. Her contribution is deducted from her paycheck. What is Otero’s monthly deduction?
a. / $150.63 / c. / $125.97b. / $128.41 / d. / $125.19
____5.Rodney Miller is employed by Masters Drummond Corporation. The PPO annual premium is $7,875. His employer pays 85 percent of the total cost. Miller’s contribution is deducted from his paycheck. What is his annual contribution?
a. / $1,205.36 / c. / $1,115.87b. / $1,527.65 / d. / $1,181.25
____6.DeAndra Webb is employed by Carole Enterprises. The HMO annual premium is $6,824. Her employer pays 80 percent of the total cost. Webb’s contribution is deducted from her paycheck. What is her annual contribution?
a. / $1,364.80 / c. / $1,527.65b. / $1,528.94 / d. / $1,500.45
____7.Antonio Ruiz pays a monthly premium of $175 for health insurance. He can purchase dental care and vision care insurance for his family at an additional cost. The dental premium is $595 and the vision premium is $195 per year. What is his total monthly premium for all his insurance?
a. / $256.12 / c. / $240.83b. / $527.12 / d. / $238.41
____8.Kathy Parker pays a monthly premium of $225 for health insurance. She can purchase dental care and vision care insurance for her family at an additional cost. The dental premium is $556 and the vision premium is $324 per year. What is her total monthly premium for all her insurance?
a. / $295.42 / c. / $297.23b. / $298.33 / d. / $296.80
____9.Maria Cedeño has a family membership in her company’s health insurance program. The total cost is $5,986 annually and her employer pays 70 percent of the total cost. Cedeño also pays for the optional annual dental premium of $760 and the optional vision premium of $450. What is her total monthly premium for all her insurance?
a. / $242.13 / c. / $248.00b. / $245.85 / d. / $250.48
____10.Ka-Sean Hall has a single membership in his company’s health insurance program. The total cost is $4,856 annually and his employer pays 80 percent of the total cost. Hall also pays for the optional annual dental premium of $625 and the optional vision premium of $375. His contribution is deducted weekly from his paycheck. How much is his weekly deduction?
a. / $38.52 / c. / $42.58b. / $37.91 / d. / $38.43
____11.Marcus and Laketta Barlow are self-employed graphic designers. They pay 100 percent of a PPO insurance premium of $6,980 annually. They also have a dental plan that costs $670 annually and a vision plan that costs $322 annually. What is their total monthly premium for all their insurance?
a. / $664.33 / c. / $2,657.33b. / $1,993.00 / d. / $6,783.00
____12.Donna Wagner is a self-employed musician. She pays 100 percent of the PPO insurance premium of $5,824 annually. She also has a dental plan that costs $600 annually and a vision plan that costs $365 annually. What is her total monthly premium for all her insurance?
a. / $698.00 / c. / $697.63b. / $565.75 / d. / $699.63
____13.Brady Adams is single and has a health insurance plan with the benefits shown in the figure below. His recent network health care costs include co-payments for 7 physician visits and 8 specialist visits. Following hospital surgery he made co-payments for 12 physical therapy visits and he had 80 visits from a nurse at $55 each. His hospital admission charge was $250 and his hospital bill was $15,098. What amount did he pay?
Health Care Benefits ScheduleNetwork / Non-Network*
Annual Deductible / Single / $275 / $ 400
Family / $750 / $1,600
Hospital Charges / ---- / 80%** / 70%**
Home Health Care / First 50 visits / 100%** / 85%**
Over 50 / 80%** / 85%**
Co-insurance/Co-payment / Physician visit / $ 15 / $ 18
Specialist / $ 30 / $ 35
Physical Therapy
First 15 visits / $ 15 / 80%**
Over 15 visits / 85%** / 75%**
Emergency Room / $ 55 / $ 55
Ambulance / $ 20 / $ 20
*Non-Network refers to a health care provider that doesn’t have a contract with the health plan administrator.
**Percentage of total cost that is covered by the health care company.
a. / $3,819.60 / c. / $4,399.60
b. / $4,149.60 / d. / $4,649.60
____14.Juanita Espinosa is single and has a health insurance plan with the benefits shown in the figure below. Her network health care costs over the last year include co-payments for 19 physicians visits and 17 specialists visits. Following hospital surgery she made co-payments for 20 physical therapy visits for $100 per visit, and she had 60 visits from a nurse at $50 each. Her hospital admission charge was $300 and her hospital bill was $14,597. What amount did she pay?
Health Care Benefits ScheduleNetwork / Non-Network*
Annual Deductible / Single / $375 / $ 500
Family / $800 / $1,750
Hospital Charges / ---- / 85%** / 65%**
Home Health Care / First 50 visits / 100%** / 90%**
Over 50 / 90%** / 90%**
Co-insurance/Co-payment / Physician visit / $ 10 / $ 12
Specialist / $ 25 / $ 30
Physical Therapy
First 15 visits / $ 15 / 75%**
Over 15 visits / 80%** / 70%**
Emergency Room / $ 60 / $ 50
Ambulance / $ 30 / $ 30
*Non-Network refers to a health care provider that doesn’t have a contract with the health plan administrator.
**Percentage of total cost that is covered by the health care company.
a. / $3,504.55 / c. / $4,629.00
b. / $3,854.55 / d. / $4,679.00
____15.Joshua Freeman has a family membership in his company’s health insurance plan with the benefits shown. His recent non-network health care costs include co-payments for 10 physicians visits. Following hospital surgery he made co-payments for 10 physical therapy visits for $150 per visit, and he had 50 visits from a nurse at $55 each. His hospital admission charge was $300 and his hospital bill was $14,500. What amount did he pay?
Health Care Benefits ScheduleNetwork / Non-Network*
Annual Deductible / Single / $275 / $ 400
Family / $750 / $1,600
Hospital Charges / ---- / 80%** / 70%**
Home Health Care / First 50 visits / 100%** / 85%**
Over 50 / 80%** / 85%**
Co-insurance/Co-payment / Physician visit / $ 15 / $ 18
Specialist / $ 30 / $ 35
Physical Therapy
First 15 visits / $ 15 / 80%**
Over 15 visits / 85%** / 75%**
Emergency Room / $ 55 / $ 55
Ambulance / $ 20 / $ 20
*Non-Network refers to a health care provider that doesn’t have a contract with the health plan administrator.
**Percentage of total cost that is covered by the health care company.
a. / $7,142.50 / c. / $5,722.50
b. / $6,135.00 / d. / $5,542.50
____16.Meekasha Griggsby has a family membership in her company’s health insurance plan with the benefits shown. Her recent network health care costs include co-payments for 5 physicians visits. Following hospital surgery she made co-payments for 5 physical therapy visits. Her hospital admission charge was $200 and her hospital bill was $10,000. What amount did she pay?
Health Care Benefits ScheduleNetwork / Non-Network*
Annual Deductible / Single / $200 / $ 300
Family / $600 / $1,200
Hospital Charges / ---- / 60%** / 75%**
Home Health Care / First 50 visits / 100%** / 95%**
Over 50 / 90%** / 95%**
Co-insurance/Co-payment / Physician visit / $ 20 / $ 22
Specialist / $ 25 / $ 40
Physical Therapy
First 15 visits / $ 20 / 90%**
Over 15 visits / 75%** / 85%**
Emergency Room / $ 60 / $ 65
Ambulance / $ 75 / $ 80
*Non-Network refers to a health care provider that doesn’t have a contract with the health plan administrator.
**Percentage of total cost that is covered by the health care company.
a. / $1,000 / c. / $6,000
b. / $5,000 / d. / $7,000
____17.Carl Pitt is 35 years old. He wants to purchase a $50,000, 5-year term life insurance policy. The premium per $1,000 is $2.50. What is his annual premium?
a. / $125.00 / c. / $156.22b. / $235.45 / d. / $326.88
____18.Asana Cruz is 45 years old. She wants to purchase a $50,000, 5-year term life insurance policy. The premium per $1,000 is $4.87. What is her annual premium?
a. / $248.90 / c. / $348.70b. / $243.50 / d. / $248.62
____19.Thomas Trotte is 50 years old. He wants to purchase a $50,000, 5-year term life insurance policy. The premium per $1,000 is $5.80. What is his annual premium?
a. / $560 / c. / $290b. / $296 / d. / $580
____20.Carla Arslanian is 55 years old. She wants to purchase a $100,000, 10-year term life insurance policy. The premium per $1,000 is $8.95. What is her annual premium?
a. / $189 / c. / $150b. / $290 / d. / $895
____21.Enrico Estevez is 37 years old. He wants to purchase a $50,000, 5-year term life insurance policy. The premium per $1,000 is $2.64. What is his annual premium?
a. / $132 / c. / $127b. / $126 / d. / $159
____22.Dierdre Sullivan took out a $100,000, 10-year term policy at age 40. The premium per $1,000 was $3.30. She will be 50 years old next year when the premium per $1,000 will be $5.90. What is the amount of the increase?
a. / $260 / c. / $240b. / $250 / d. / $280
____23.Taylor Breen took out a $100,000, 5-year term policy at age 48. The premium per $1,000 was $4.70. He will be 53 years old next year when the premium per $1,000 will be $6.40. What is the amount of the increase?
a. / $135 / c. / $170b. / $136 / d. / $133
____24.Keena Williams took out a $100,000, 5-year term policy at age 40. The premium per $1,000 was $3.56. She will be 45 years old this year. The premium per $1,000 will be $4.62. What is the percent increase?
a. / 36% / c. / 42%b. / 30% / d. / 32%
____25.Hamid Husain took out a $50,000, 5-year term policy at age 50. The premium per $1,000 was $4.80. He will be 55 years old this year. The premium per $1,000 will be $6.58. What is the percent increase?
a. / 38% / c. / 42%b. / 32% / d. / 37%
____26.Samantha David took out a $70,000, 5-year term policy at age 45. The premium per $1,000 was $4.21. She will be 50 years old this year. The premium per $1,000 will be $5.90. What is the percent increase?
a. / 45% / c. / 40%b. / 42% / d. / 52%
____27.Jeff Conrad is 30 years old. He wants to purchase a whole life policy valued at $50,000. Use the figure below to calculate his annual premium.
Annual Premiums per $1,000 of Life InsuranceWhole Life
Age / Male / Female
20 / $8.00 / $6.35
25 / $9.50 / $7.40
30 / $11.75 / $9.15
35 / $15.00 / $11.60
40 / $19.50 / $14.40
45 / $25.50 / $18.65
50 / $34.00 / $24.35
55 / $46.50 / $32.35
a. / $587.50 / c. / $465.90
b. / $563.80 / d. / $432.87
____28.Paulette Wilcox is 30 years old. She wants to purchase a whole life policy valued at 90,000. Use the figure below to calculate her annual premium.
Annual Premiums per $1,000 of Life InsuranceWhole Life
Age / Male / Female
20 / $8.75 / $6.35
25 / $9.50 / $7.40
30 / $12.50 / $9.15
35 / $15.75 / $11.60
40 / $20.70 / $14.40
45 / $25.50 / $18.65
50 / $34.50 / $24.35
55 / $47.25 / $32.35
a. / $1,097.64 / c. / $823.50
b. / $865.28 / d. / $567.24
Figure 11.1. Use this table with the question(s) below, as needed.
Annual Premiums per $1,000 of Life InsurancePaid Up to Age 65
Age / Male / Female
20 / $11.75 / $10.00
25 / $13.50 / $11.75
30 / $16.75 / $13.50
35 / $22.00 / $17.65
40 / $28.50 / $24.50
45 / $38.75 / $33.75
50 / $56.75 / $46.75
55 / $57.00 / $50.60
____29.Use Figure 11.1. Marco Espinosa is 45 years old. He wants to purchase a limited payment policy valued at $125,000 until age 65. Use the figure to calculate his annual premium.
a. / $5,658.60 / c. / $5,456.75b. / $4,519.50 / d. / $4,843.75
____30.Use Figure 11.1. Rita Robins is 20 years old. She wants to purchase a limited payment policy valued at $125,000 until age 65. Use the figure to calculate her annual premium.
a. / $1,250 / c. / $1,456b. / $1,658 / d. / $1,684
____31.Use Figure 11.1. Yumiko Yoshida is 50 years old. He wants to purchase a limited payment policy valued at $75,000 until age 65. Use the figure to calculate his annual premium.
a. / $4,675.00 / c. / $45.89b. / $4,256.25 / d. / $46.92
____32.Sean Roberts was admitted to the hospital for surgery. His insurance covers 80 percent of the hospital charges which totaled $7,987. What amount did he pay for hospital charges?
a. / $7,000.00 / c. / $2,000.00b. / $1,597.40 / d. / $4,255.00
____33.Marybeth Adamson’s recent health care costs include co-payments of $125 and a hospital bill of $750. Her insurance has a $200 deductible and it covers 100 percent of all hospital charges. What amount did she pay?
a. / $231 / c. / $450b. / $325 / d. / $125
____34.Fidel Baez has a health insurance plan with a $150 deductible. The plan covers 80 percent of his hospital charges. Baez’s recent health care costs include $300 in co-payments and a hospital bill of $2,300. What amount did he pay?
a. / $910 / c. / $567b. / $561 / d. / $874
____35.Abigail Simon has a health insurance plan with a $200 deductible. The plan covers 75 percent of her hospital charges. Simon’s recent health care costs include $250 in co-payments and a hospital bill of $12,300. What amount did she pay?
a. / $1,760 / c. / $2,644b. / $2,459 / d. / $3,525
____36.Ralph Barkely has a health insurance plan with a $400 deductible. The plan covers 75 percent of his hospital charges. Barkely’s recent health care costs include $450 in co-payments and a hospital bill of $5,700. A $250 hospital admission fee is not covered by his insurance. What amount did he pay?
a. / $4,458 / c. / $2,525b. / $3,458 / d. / $2,488
____37.Gabriella Regalado broke her arm while playing soccer. The injury resulted in many medical bills. She has a health insurance plan with a $700 deductible. The plan covers 90 percent of her hospital charges. Regalado’s recent health care costs include 5 physician visits with a co-payment of $20 per visit, 20 physical therapy visits with a co-payment of $25 per visit, and a hospital bill of $7,200. A $150 hospital admission fee is not covered by her insurance. What amount did she pay?
a. / $3,170 / c. / $4,170b. / $2,270 / d. / $2,170
____38.George Cannon broke his leg while playing basketball. The injury resulted in many medical bills. He has a health insurance plan with a $500 deductible. The plan covers 80 percent of his hospital charges. His recent health care costs include 10 physician visits with a co-payment of $10 per visit, 25 physical therapy visits with a co-payment of $20 per visit, and a hospital bill of $5,200. A $250 hospital admission fee is not covered by his insurance. What amount did Cannon pay?
a. / $2,390 / c. / $5,447b. / $3,458 / d. / $2,697
____39.Izabel Romero took out a $100,000, 10-year term policy at age 55. The premium per $1,000 was $8.85. She will be 65 years old this year. The premium per $1,000 will be $14.00. What is the annual increase?
a. / $530.00 / c. / $562.00b. / $515.00 / d. / $553.00
____40.James Nelson took out a $60,000, 5-year term policy at age 42. The premium per $1,000 was $4.23. He will be 47 years old this year. The premium per $1,000 will be $6.10. What is the percent increase?
a. / 45% / c. / 40%b. / 44% / d. / 52%
____41.Laurita Rodriguez has a whole life insurance policy that has an annual premium of $1,023. She wants to pay the premium quarterly. The quarterly premium is 26 percent of the annual premium. What are her quarterly payments?
a. / $324.12 / c. / $231.67b. / $265.98 / d. / $235.87
____42.Luis Huerto has a limited payment insurance policy until age 65. His annual premium is $875. He wants to pay the premium monthly. The monthly premium is 8.4 percent of the annual premium. What are his monthly payments?
a. / $69.75 / c. / $73.50b. / $56.11 / d. / $70.98
____43.Karen Parsons has a whole life insurance policy that has an annual premium of $842. She wants to pay the premium semiannually. The semiannual premium is 51 percent of the annual premium. What are her semiannual payments?
a. / $408.59 / c. / $458.12b. / $641.97 / d. / $429.42
____44.Shonetta Woods has a limited payment insurance policy with an annual premium of $1,125 until age 65. She pays the premium quarterly at an increased rate of 26.2 percent per quarter. How much money can Woods save in one year by paying the premium annually?
a. / $23 / c. / $54b. / $65 / d. / $89
____45.Claire Fisher took out a $60,000, 5-year term policy at age 44. The premium per $1,000 was $4.35. She will be 49 years old this year. The premium per $1,000 will be $6.22. What is the percent increase?
a. / 78% / c. / 56%b. / 42% / d. / 43%
CHAPTER 11 TEST - Personal Finance 04/2016
Answer Section
MULTIPLE CHOICE
1.ANS:APTS:1DIF:BasicREF:Section 11-1
2.ANS:CPTS:1DIF:BasicREF:Section 11-1
3.ANS:BPTS:1DIF:BasicREF:Section 11-1
4.ANS:DPTS:1DIF:BasicREF:Section 11-1
5.ANS:DPTS:1DIF:BasicREF:Section 11-1
6.ANS:APTS:1DIF:BasicREF:Section 11-1
7.ANS:CPTS:1DIF:AverageREF:Section 11-1
8.ANS:BPTS:1DIF:AverageREF:Section 11-1
9.ANS:DPTS:1DIF:AverageREF:Section 11-1
10.ANS:BPTS:1DIF:AverageREF:Section 11-1
11.ANS:APTS:1DIF:AverageREF:Section 11-1
12.ANS:BPTS:1DIF:AverageREF:Section 11-1
13.ANS:CPTS:1DIF:AverageREF:Section 11-2
14.ANS:BPTS:1DIF:AverageREF:Section 11-2
15.ANS:APTS:1DIF:AverageREF:Section 11-2
16.ANS:BPTS:1DIF:AverageREF:Section 11-2
17.ANS:APTS:1DIF:BasicREF:Section 11-3
18.ANS:BPTS:1DIF:BasicREF:Section 11-3
19.ANS:CPTS:1DIF:BasicREF:Section 11-3
20.ANS:DPTS:1DIF:BasicREF:Section 11-3
21.ANS:APTS:1DIF:BasicREF:Section 11-3
22.ANS:APTS:1DIF:AverageREF:Section 11-3
23.ANS:CPTS:1DIF:AverageREF:Section 11-3
24.ANS:BPTS:1DIF:AverageREF:Section 11-3
25.ANS:DPTS:1DIF:AverageREF:Section 11-3
26.ANS:CPTS:1DIF:AverageREF:Section 11-3
27.ANS:APTS:1DIF:BasicREF:Section 11-4
28.ANS:CPTS:1DIF:BasicREF:Section 11-4
29.ANS:DPTS:1DIF:BasicREF:Section 11-4
30.ANS:APTS:1DIF:BasicREF:Section 11-4
31.ANS:BPTS:1DIF:BasicREF:Section 11-4
32.ANS:BPTS:1DIF:BasicREF:Section 11-2
33.ANS:BPTS:1DIF:BasicREF:Section 11-2
34.ANS:APTS:1DIF:BasicREF:Section 11-2
35.ANS:DPTS:1DIF:AverageREF:Section 11-2
36.ANS:CPTS:1DIF:AverageREF:Section 11-2
37.ANS:DPTS:1DIF:AverageREF:Section 11-2
38.ANS:APTS:1DIF:AverageREF:Section 11-2
39.ANS:BPTS:1DIF:AverageREF:Section 11-3
40.ANS:BPTS:1DIF:AverageREF:Section 11-3
41.ANS:BPTS:1DIF:AverageREF:Section 11-4
42.ANS:CPTS:1DIF:AverageREF:Section 11-4
43.ANS:DPTS:1DIF:AverageREF:Section 11-4
44.ANS:CPTS:1DIF:AverageREF:Section 11-4
45.ANS:DPTS:1DIF:AverageREF:Section 11-4