Cumulative Exam — Cumulative exam Answers

If the purchase price for a house is $309,900, what is the monthly payment if you put 20% down for a 30 year loan with a fixed rate of 6%?a.$729.98b.$912.48c.$1,486.41d.$1,858.01

Cameron has decided to diversify his investments in the following way:$3,000 in an account earning 2.7% simple interest$5,000 in a savings account earning 1.8% interest compounded annually$5,000 in a certificate of deposit earning 3.9% interest compounded quarterlyHow much total interest will Cameron earn on his investments at the end of 3 years?a.$530.87b.$665.57c.$973.30d.$1,135.30

You have $12,000 to invest and want to keep your money invested for 8 years. You are considering the following investment options. Choose the investment option that will earn you the most money.a.3.99% compounded monthlyb.4% compounded quarterlyc.4.175% compounded annuallyd.4.2% simple interest

Stock in Trochel Office Supplies trades at $72.40 per share and pays a yearly dividend of $6.92 per share. If David owns stock in Trochel Office Supplies worth $6,443.60, how much does he get paid in yearly dividends?a.$678.16b.$931.16c.$615.88d.$560.52

Henry and Walter open savings accounts at the same time. Henry invests $6,500 at 4.54% simple interest, and Walter invests $7,100 at 4.74% simple interest. After eight years, how much more interest has Walter earned than Henry?a.$331.52b.$420.67c.$631.52d.$719.59

Determine the total annual FICA tax for an annual salary of $110,330. Use $106,800 for maximum taxable earnings. a. $822.14 b. $844.02 c. $8,221.39 d. $8,440.24 Please select the best answer from the choices provided

Jodi is retiring at the age of 65. When she retires, she estimates that she will need a monthly income for 25 years. If Jodi starts with $328,133.32 in an account that pays 6.2% interest compounded monthly, approximately what monthly income will she be able to draw? a. $2,665 b. $2,154 c. $1,948 d. $1,094 Please select the best answer from the choices provided

What is one difference between a vocational school and on-the-job training?

Lauryn’s wages were not as much as she had budgeted. How can her budget be modified so there will be a positive actual net income? a. Reduce the college savings expense by $50. b. Reduce the clothes expense by $75. c. Reduce the recreation expense by $25. d. Do all of the above. Please select the best answer from the choices provided

Damian wants to save $7200 to buy a car within the next 2 years. Which budget would help Damian save enough money to buy a car in a timely manner with minimal effect on his other essential expenses? Monthly Budget Budget A Budget B Budget C Budget D Income $1000 $1,000 $1,000 $1,000 Expenses- Rent Utilities Food Bus Pass Car Savings School Savings $300 $75 $150 $25 $350 $100 $300 $75 $150 $25 $250 $200 $300 $75 $75 $0 $300 $250 $300 $75 $150 $25 $100 $350 a. Budget A b. Budget B c. Budget C d. Budget D Please select the best answer from the choices provided

Alexa has finished her culinary training program and is now working full-time as a chef in a hotel resort restaurant. She has tripled her salary from when she was working part-time to pay her expenses through school. How should this increased income affect her budget? Make comparisons with her previous budget and her current budget. Monthly Budget Previous Budget Current Budget Income Wages $800 $2400 Expenses Rent Utilities Groceries Savings Bus Pass $300 $60 $200 $100 $30 $300 $60 $250 $150 $30 Net Income $110 $1610 a. Alexa is earning quite a bit more money and her expenses reflect the change in income. b. Alexa is earning quite a bit more money than she was previously. She has worked hard and deserves to spend a lot of money on herself. c. Alexa is earning quite a bit more money than she was previously. This would be a good time for her to re-evaluate her budget. Part of the extra money she is making could be put in her savings account. d. Her increased income should have no effect on her financial decisions. Please select the best answer from the choices provided

Ken has just retired. His Roth IRA has a present value of $524,856.00 and has an interest rate of 3.4%, compounded annually. In addition, he receives a yearly pension of $32,615.12. Given that Ken plans to draw from his Roth IRA for the next fifteen years, find his total annual income.a.$86,483.17b.$77,862.30c.$50,503.76d.$49,915.55

Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?

Analyze the following budget, with an income of $750, to determine how much can be spent on food for the month. Month________Budgeted AmountFood$___Personal Items$20Cell Phone $75Entertainment$85Car Expenses – Gas, Insurance$260College Savings$250a.No more than $70 can be spent on food.b.No more than $75 can be spent on food.c.No more than $80 can be spent on food.d.No more than $60 can be spent on food.

What are the signs of low inflation? Check all that apply.Demand steadily rises.Demand steadily falls.Prices continue to increase.Prices continue to decrease.The economy grows in a healthy way.The economy stagnates and struggles.

Jolene is graduating from high school in May. She received this offer from a university. Financial Analysis for UniversityCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$9,800$11,000Room & BoardWork-Study$12,500$5,000Which statements about the offer are true? Check all that apply.

Fiona wrote a check to the veterinarian for $89.56. She’ll use the check register to record her transaction. What will be her new balance?

In which column on a check register should the total current amount in the account be entered?

Jennifer is excited to be retiring after 35 years of service as a high school English teacher. Over the past 35 years, Jennifer’s average annual salary was $26,443. How much can Jennifer expect to receive on a monthly basis from Social Security, assuming she will receive 42% of her average annually?a.$11,106.06b.$1,110.61c.$9,255.05d.$925.51

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $125,000. Use $106,800 for maximum taxable earnings. (Soc Sec 6.2%, taxed up to $106,800 and Medicare 1.45%). a. Social Security tax: $77,500.00, Medicare tax: $18,125.00 b. Social Security tax: $7,750.00, Medicare tax: $1,812.50 c. Social Security tax: $66,216.00, Medicare tax: $18,125.00 d. Social Security tax: $6,621.60, Medicare tax: $1,812.50 Please select the best answer from the choices provided