AnswersMathematics for Data and Financial LiteracyN/A

Practice Exam Answers

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1
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Based on the "retirement savings on track" percentage, which age group should prioritize reviewing their retirement savings strategy?

A
ages 60+
B
ages 18–29
C
ages 30–44
D
ages 45–59
2
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Xin is planning to save $⁢300,000 in 10 years. The account has an annual interest rate of 4.5% compounded monthly. What is the required monthly deposit? Use the following formula: P=(F⁢V⋅(r)/(n))/((1+(r)/(n))^n⁢t−1)

A
1 dollars comma 984 point 1 5
B
1 dollars comma 890 point 9 4
C
2 dollars comma 433 point 6 7
D
2 dollars comma 444 point 6 4
3

The table represents the net profit an owner collects depending on the number of members of a club. Members Net Profit 50 −1,045 100 6,455 The owner would like to earn at least $⁢5,938 Complete each statement about the constraints based on the inequality. Enter your answers in the boxes.

Answer:

150|96.5533333333333

4

What could Chance do to adjust the budget after receiving an unexpected bill for home repairs?

A
continue spending as usual without any changes
B
cut back on discretionary expenses like entertainment
C
increase spending on nonessential items
D
ignore the bill until the next month
5

Which normal distribution curve represents the data with a mean of $⁢56,000 and a standard deviation of $⁢7,250 ?

A
Image with description A parabola graph with the x-axis ranges 38,000, 41,000, 50,000, 56,000, and 62,000. The high median is 50,000.
B
Image with description A parabola graph with the x-axis ranges 43,500, 49,750, 56,000, 62,250, and 68,500. The high median is 56,000.
C
Image with description A parabola graph with the x-axis ranges 35,500, 42,750, 50,000, 57,250, and 64,500. The high median is 50,000.
D
Image with description A parabola graph with the x-axis ranges 41,500, 48,750, 56,000, 63,250, and 70,500. The high median is 56,000.
6

A stock is priced at $⁢19.74 per share, and the flat brokerage fee is $⁢6.99 One investor’s account has a debit of $⁢15,798.99 for the purchase of some shares. How many shares were purchased? Round to the nearest whole number if necessary. Enter your answer in the box.

Answer:

800

7

Which piecewise function best represents a tax system where the first $⁢10,000 of income is taxed at 8% , and any income above $⁢10,000 is taxed at 20% ?

A
T⁡(x)={0.08⁢xif x≤10,0001,000+0.2⁢(x−10,000)if x>10,000
B
T⁡(x)={0.08⁢xif x≤10,0001,600+0.2⁢(x−10,000)if x>10,000
C
T⁡(x)={0.2⁢xif x≤10,000800+0.08⁢(x−10,000)if x>10,000
D
T⁡(x)={0.08⁢xif x≤10,000800+0.2⁢(x−10,000)if x>10,000
8

Given the function P⁡(x)=−3⁢(x−2)^2+12 , click on the coordinated grid to select the point representing the vertex first, then click on the coordinate grid to select one x -intercepts of the function.

Answer:

parabola; 2; 12; 0

9

A shares transaction summary shows a total purchase price of $⁢17,267.75 before fees. If the share price had been $⁢12.50 cheaper, the investor could have purchased 50 more shares. Simplify and solve the equation (17,267.75)/(x−12.50)−(17,267.75)/(x)=50 , and then use the quadratic formula to find the price per share. Round to the nearest hundredth if necessary. Enter your answer in the box.

Answer:

72.25

10

An individual is currently in the 24% tax bracket and expects to be in the 12% tax bracket during retirement. They want to minimize their tax burden both now and in retirement. Which retirement plan would best suit this individual?

A
traditional IRA
B
Roth IRA
C
Roth 401(k)
D
pension plan
11

Xin is planning to save $⁢300,000 in 10 years. The account has an annual interest rate of 4.5% compounded monthly. What is the required monthly deposit? Use the following formula: P=(F⁢V⋅(r)/(n))/((1+(r)/(n))^n⁢t−1)

A
1 dollars comma 890 point 9 4
B
2 dollars comma 433 point 6 7
C
1 dollars comma 984 point 1 5
D
2 dollars comma 444 point 6 4
12

Jonathan invests $⁢250,000 in a mutual fund. The fund charges a 0.5% annual fee for the management of the portfolio. How much did Jonathan pay in fees for the investment?

A
500 dollars
B
1 dollars comma 000
C
250 dollars comma 000
D
1 dollars comma 250
13

An investor earns $⁢500 in dividends from a stock portfolio and $⁢1,200 in property rental income each month. What is the total monthly income generated from these assets?

A
500 dollars
B
1 dollars comma 700
C
1 dollars comma 200
D
2 dollars comma 000
14

A parcel of land is valued at $⁢100,000 and is subjected to a tax rate of 0.8% What is the annual tax amount?

A
500 dollars
B
600 dollars
C
700 dollars
D
800 dollars
15

Maliha withdraws $⁢2,000 from a Roth IRA for a first-time home purchase at age 35 How much will they owe in penalties, assuming no other exceptions apply?

A
0 dollars
B
200 dollars
C
600 dollars
D
400 dollars
16

Hugo expects his investment to grow to $75,000 in 20 years. The current CPI is 100 , and the CPI in 20 years is expected to be 150 What is the present value of the $75,000 in today's dollars? Use this formula to calculate the present value using the CPI: present value=(future value)/((future CPI)/(current CPI))

A
$75,000
B
$70,000
C
$60,000
D
$50,000
17

Luiza's credit card balance started at $⁢4,500 After making a large payment of $⁢1,500 , their balance decreased to $⁢3,000 However, due to interest charges, their balance rose to $⁢3,300 at the end of the month. What is the overall percent change in Luiza's credit card balance after all events, including the interest charges? Use the percent change formula: Percent change=(new value−original value)/(original value)⋅100%

A
26.6% increase
B
26.6% decrease
C
33.3% increase
D
33.3% decrease
18

A tax preparation company provides tax returns as a service and uses this demand function to determine the number of clients q they will get at different prices: q=150−3⁢p - The revenue function is given by: R⁡(p)=p⋅q=150⁢p−3⁢p^2 - The expense function is given by: E⁡(p)=500+10⁢q=500+10⁢(150−3⁢p)=500+1,500−30⁢p=2,000−30⁢p What is the profit equation P⁡(p) in terms of price p ?

A
cap p times p is equal to 150 p minus 3 p squared minus 2 comma 000
B
cap p times p is equal to 120 p minus 3 p squared minus 2 comma 000
C
cap p times p is equal to 210 p minus 3 p squared minus 2 comma 000
D
cap p times p is equal to 180 p minus 3 p squared minus 2 comma 000
19

Nana is a new graduate who just started her first full-time job. She has limited savings and wants to take full advantage of any employer match to grow her retirement savings as quickly as possible. Which retirement plan option would best fit Nana's financial goals?

A
a 401(k) with 100 percent employer contribution matching up to 6 percent, a five-year cliff vesting schedule, and higher fees for early withdrawals
B
a 401(k) with 100 percent employer contribution matching up to 5 percent, a five-year cliff vesting schedule, and lower fees for early withdrawals
C
a 401(k) with 75 percent employer contribution matching up to 5 percent, a two-year cliff vesting schedule, and lower fees for early withdrawals
D
a pension plan with fixed monthly payouts upon retirement
20

Which factor would most likely require adjusting a long-term budget?

A
eating at a restaurant once a month
B
using seasonal store discounts
C
paying utility bills on time
D
having an unexpected medical expense

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