Cumulative Exam — Cumulative exam Answers

Because Aaron, age 32, is a smoker, he must pay more for life insurance. Given that Company A charges 20% more for smokers, Company B charges 18% more for smokers, Company C charge 25% more for smokers and Company D charges 15% more for smokers, Aaron decides to buy his $250,000 policy from Company B. Which of the following statements is true? a. Aaron is paying the smallest premium possible with Company B. b. Aaron is paying $93 more in premiums than he would with Company A. c. Aaron is paying $129 more in premiums than he would with Company C. d. Aaron could have chosen any company because the premiums are all the same. Please select the best answer from the choices provided

Consider today’s stock listings for Bukkia Hog Farms, shown below.52 wk High52 wk LowSymbolDiv.CloseNet Change212.45106.63BHF18.95140.268.85Today, Ken sold the 116 shares of Bukkia Hog Farms that he purchased yesterday. How much profit did Ken make?a.$1,171.60b.$2,198.20c.$3,901.08d.$1,026.60

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

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

As a part-time employee, Rachel does not qualify for any benefits from her current employer. Seeing a need for a health care program, Rachel went shopping for health insurance and is trying to decide between two options with a national health insurance provider. The benefits of each option are outlined in the tables below. OPTION 1: Fee-for-service OPTION 2: HMO $225 monthly premium $630 monthly premium $7,500 deductible No annual deductible Co-pays: Co-pays: Name-brand Drugs: $30 Name-brand Drugs: $25 Generic Drugs: $12 Generic Drugs $10 Visits: Visits: Primary Care Physician $30 Primary Care Physician $20 Specialist: $75 Specialist: $62 Urgent Care: $100 Urgent Care: $50 Emergency Room: $250 Emergency Room: $175 The first option is a fee-for-service plan with a $7,500 deductible. Rachel must pay the deductible amount in health-related costs (not including co-pays) before the insurance company will contribute. This plan costs $225.00 per month and requires co-pays for most standard healthcare costs. The second option is an HMO. It is significantly more expensive at $630 per month, but has no annual deductible. The standard co-pays are also less than those in the other option. Rachel is a young lady with very few health care requirements. She anticipates one monthly visit to her primary care physician, and one annual visit to her allergy specialist. She has two generic prescription allergy medicines that need to be filled twice a month. If Rachel is able to stay healthy the entire year and does not accrue any additional health care costs, which of the following statements is true for her situation? a. The higher co-pays and annual deductible make Option 1 more expensive than Option 2. b. The higher premium for Option 2 offsets the lower co-pays making the two options the same value. c. Rachel's health care needs will cost less under Option 1 if she is able to avoid additional health care costs. d. Even though she pays more monthly, the insurance company will cover more of Rachel's health care costs under option 2. Please select the best answer from the choices provided

Shaniqua brings home $225 per week working 25 hours. She is able to save $25 of her earnings each week. Shaniqua wants to have $600 saved at the end of 15 weeks. She is allowed to work up to 30 hours per week if she wants. She can save all the money earned working extra hours. Which of the following statements is true?a.Shaniqua will meet her goal working 25 hours per week.b.Shaniqua must work 27 hours per week to meet her goal.c.Shaniqua must work 30 hours per week to meet her goal.d.Shaniqua will not be able to reach her goal.

Eli is a loan officer. He determines his clients’ eligibility for loans and for good interest rates by using their credit scores. The scores of several clients are shown in the following table.NameExperianEquifaxTransUnionRoy750792661Dirk771707755Haley643642770Valerie646773762Help Eli evaluate his applicants based on their mean and median credit scores.a.Valerie has the highest mean score, but Roy has the highest median score.b.Dirk has the highest mean score and the highest median score.c.Roy has the highest mean score, but Valerie has the highest median score.d.Dirk has the highest mean score, but Valerie has the highest median score.

Two people quit work and begin college at the same time. Their salary and education information is given in the table below. Salary prior to school Years attending college Total cost of college Salary upon graduating Person A $18,000 3 $45000 $33,000 Person B $27,000 4 $30,000 $37,000 Choose the true statement. a. Person A recovers their investment in a shorter amount of time. b. Person B recovers their investment in a shorter amount of time. c. They recover their investments in the same amount of time. d. There is too little information to compare the time to recover their investments. Please select the best answer from the choices provided

Which of the following companies offers the greatest total employment compensation? Company ACompany BCompany CCompany DGross Pay$41,600$40,800$41,300$42,000Paid insurance$1,800$2,400$2,000$2,100Paid time off$3,700$3,100$2,800$2,900Job expenses$2,000$1,800$800$2,500a.Company Ab.Company Bc.Company C d.Company D

Megan used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it does not. Friendly Bank Reconciliation Worksheet Amount 1. Enter the statement closing balance. $ 487 13 2. Enter the sum of any outstanding deposits or credits. $ 186 68 3. Add lines 1 and 2. $ 673 81 4. Enter the sum of any outstanding checks or debits. $ 174 01 5. Subtract line 4 from line 3. $ 499 80 6. Enter your checkbook balance. $ 362 60 Note: Lines 5 and 6 should be equal at the end of the reconciliation. Megan wants to first look for a single transaction that could have caused this problem with reconciliation. What is the amount of the transaction that Megan should look for in order to find a solution to the problem? a. $325.79 b. $137.20 c. $12.67 d. $313.20 Please select the best answer from the choices provided

You have $5,400 to deposit. If you deposit the money in a savings account at your local bank, you will earn 1.49% annual interest and will be able to make ATM withdrawals at your bank’s ATMs. If you deposit the money in an online savings account, you will earn 4.44% annual interest, but you will be charged $5 every time you make an ATM withdrawal. Assuming that your ATM withdrawals do not reduce the amount of interest you earn, roughly how many times a year can you make an ATM withdrawal in order for the local savings account to be a better deal than the online savings account? a. 32 b. 27 c. 22 d. 15 Please select the best answer from the choices provided

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

Maya’s credit card has an APR of 11.84% and a billing cycle of 30 days. The table below shows her transactions with that credit card in the month of September.DateAmount ($)Transaction9/1395.61Beginning balance9/824.13Purchase9/1368.57Payment9/2631.77PurchaseFind Maya’s finance charge for September using the previous balance method, the adjusted balance method, and the daily balance method. Among those three possible finance charges, what is the value of the one which is neither lowest nor highest?a.$3.79b.$3.90c.$3.68d.$4.45

Curtis just received a raise at work increasing his salary by $8,500. He knows that an increase in salary will increase the amount of federal income taxes withheld from his paycheck. Which of the following statements best describes the effect his raise will have on state income tax withholdings? a. State income tax is unrelated to federal, he will see no change in his state withholding. b. Since he is having more withheld for federal, he will have less withheld for state so that he pays the same amount in the end. c. State income tax is usually a set percentage of federal income tax. With an increase in federal he will see an increase in state withholding. d. Since he is making more money, the state government will take advantage of his raise and charge him more income tax. His state withholding will increase. Please select the best answer from the choices provided

Mary pays income tax according to the graduated schedule shown below. If Mary’s taxable income is $68,562, how much income tax does she owe, rounded to the nearest dollar? a. $13,564 b. $17,140 c. $21,527 d. $12,349 Please select the best answer from the choices provided

Based on the above chart, which industry’s average annual rate of change is projected to decrease the most in the 2006-2016 period as compared to its average annual rate of change during 1996-2006? a. Utilities b. Educational services c. Federal government d. State and local government Please select the best answer from the choices provided

Marilyn has a biweekly gross pay of $810 and claims 3 federal withholding allowances. Marilyn has all of the following deductions from her gross pay: federal tax from the following table Social Security tax that is 6.2% of her gross pay Medicare tax that is 1.45% of her gross pay state tax that is 21% of her federal tax Determine how Marilyn’s net pay will be affected if she increases her federal withholding allowances from 3 to 4. a. Her net pay will increase by $15.00. b. Her net pay will decrease by $15.00. c. Her net pay will increase by $18.15. d. Her net pay will decrease by $18.15. Please select the best answer from the choices provided

You have found a house that you would like to purchase. The amount of the home is $525,000. You would like to finance the home through your local credit union but they require a 8% down payment. Determine the amount needed for the down payment so that the bank will finance the home purchase. a.$525,000c.$42,000b.$420,000d.$4,200

Emma is ready to open a new checking account and is trying to decide between three banks using the chart below:Bank RBank SBank TNo monthly fees if balance stays above $300, otherwise $7 per monthNo monthly fees if check card is used more than 6 times per month, otherwise $10 monthly fee$5 monthly feeNo minimum balance$25 minimum balanceNo minimum balanceOnline banking servicesOnline banking servicesNo online banking optionsNon-Bank R ATM fee - $2.00 per transactionNon-Bank S ATM fee - $1.50 per transactionNon-Bank T ATM fee - $2.00 per transactionEmma usually has about $1000 in her account at any given time during the month. She usually visits the ATM twice a week and is interested in banking online options. Bank R has 10 ATMs within a 5 mile radius of Emma’s home. Bank S has 1 ATM 10 miles from Emma’s work. Which bank should she choose?a.Bank Rb.Bank Sc.Bank Td.Bank R and S

Sheila has a plan to save $45 a month for 18 months so that she has $810 to remodel her bathroom. After 13 months Sheila has saved $510. If the most Sheila can possibly save is $70 per month, which of the following statements is true? a. Sheila will meet her goal and does not need to adjust her plan. b. Sheila must save $50 per month to achieve her goal. c. Sheila must save $60 per month to achieve her goal. d. Sheila will not be able to achieve her goal. Please select the best answer from the choices provided