Budgeting and Being a Smart Consumer Answers

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1
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Walden’s family is shopping for a reclining chair. The chair the family decided on has a retail price of $800 plus 5% sales tax at four stores. Each store is offering a different promotion. StorePromotional OfferA$75 instant rebateB10% off saleC5% off sale plus store pays sales taxDa “no tax” sale—the store pays the taxWhich store has the best deal?

A
store A
B
store B
C
store C
D
store D
2
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The Hernandez family budget is shown in the graph. Which 3 categories make up more than half of the Hernandez family budget? Select two choices..

Question illustration
A
clothing, medical, and emergency fund
B
clothing, housing, and savings
C
housing, savings, and food
D
housing, food, and transportation
E
food, transportation, and emergency fund
3

Hillary’s family is thinking of relocating to a different city to save money. They set up a budget comparing the cost of living in four cities. OaklandPhoenixSanta FeSan DiegoItemCostCostCostCostHousing$565$465$505$1200Food$545$495$475$655Health Care$245$215$200$495Taxes$450$415$385$625Other Necessities$350$305$295$495Monthly Total$2155$1895$1860$3470Based on cost of living alone, which city should they choose to live in?

A
Oakland
B
Phoenix
C
Santa Fe
D
San Diego
4

Ramya’s mom was hired for a new job with a yearly income of $84,000. The total of all deductions from her paycheck will be 25% of the gross pay. She asked Ramya to compute her net monthly income. What is Ramya’s mother’s net monthly income?

A
$1,750
B
$3,360
C
$5,250
D
$6,720
5

A dishwasher is priced at $475. There are two options offered to reduce the price: either a 15% discount off the price or a rebate of $75. Which is the better choice, and what is the extra amount saved?

A
The 15% discount is better; it saves $60 more.
B
The 15% discount is better; it saves $3.75 more.
C
The rebate is better; it saves $3.75 more.
D
The rebate is better; it saves $60 more.
6

How much more did Briana save by purchasing a backpack that cost $45 with a sales promotion of 20% off instead of a backpack that cost $42 with a sales promotion of 10% off?

A
$1.80
B
$3.00
C
$4.80
D
$6.90
7

Last year, Nevan’s gross pay was $45,150. The federal income tax percent that was withheld from his gross pay was 16%. The amount of money that Nevan actually owes the government after deductions is $6,150. Which of the following is true?

A
Nevan owes an additional $984 in federal tax.
B
Nevan owes an additional $1,074 in federal tax.
C
Nevan will receive a refund of $984.
D
Nevan will receive a refund of $1,074.
8

Shondra’s family’s monthly net income is $6,654. The family’s budget is shown in the circle graph below. The family decides to increase the savings budget by 3 percent by decreasing one of the variable expenses by 3 percent.If the family decreases the clothing budget by 3 percent, what amount will it have to spend on clothing? Round to the nearest dollar.

Question illustration
A
$266
B
$466
C
$645
D
$665
9

The Sullivan family made a bar chart to compare how much they spend on different costs each month.. Sullivan Family Monthly BudgetIf the family’s net monthly income is $7,800, what percent of the income is spent on food, clothing, and housing?

Question illustration
A
50%
B
59%
C
60%
D
61%
10

Chin needs more money in his net pay each month, so he plans to reduce his federal income tax deduction from 12% to 11%. His monthly gross pay is $3,500, and his deductions before the change are listed in the table.DeductionDollar AmountFederal Income Tax$420State Income Tax$95Social Security$89Medicare$40 What will be his new monthly net pay? Round your answer to the nearest dollar.

A
$2821
B
$2857
C
$2860
D
$2891

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