Unit 1: Mastery Form and Test Answers

Dima called her friend to tell her that she saved 30% on her new skirt at a discount store. Her friend told her that she could have gotten a better deal at a different store that was advertising a sale of off all clothing. If the original price of Dima’s skirt was $54, how much more could she have saved at the store her friend suggested?

Mikkel pays a 4 percent state income tax on his earnings. If he earns $1,867, how much state income tax can he expect to pay?

Benito’s family is thinking of relocating from Los Angeles to Oakland to save money. They set up a budget comparing the cost of living for both cities. OaklandLos AngelesBudget ItemCostCostHousing$565$1200Food$545$655Health Care$245$495Taxes$450$625Other Necessities$350$495Monthly Total How much money will they save monthly by the move to Oakland?

Gaia’s gross pay per month is $2,895. Her deductions are listed in the table.DeductionDollar AmountFederal Income Tax$324State Income Tax$96Social Security $126Medicare $39 What is Gaia’s net pay each month?

How can an insurance company make a profit by taking in premiums and making payouts?

Which type of insurance policy would someone get to protect others only?

Which would be most helpful when considering a large expenditure that might require repeating payments? Select three options.

Which is a short-term consequence of making a late payment on your bill?

Shondra is thinking of making payments for her laptop by setting up automatic withdrawals with the store. What must Shondra consider before she decides to pay with automatic withdrawals?

Planning to finance higher education helps people prepare for their financial future because it teaches them about

What is included in an individual’s personal assets? Select three options.

What might you expect to find out about people who are described as credit risks?

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?

Frank is worried about identity theft. He does not like to give access to his checking account to anyone but the bank. What is the best option for him to pay his bills?

Roland has purchased a new tablet. How can he reduce the risk of damage or misuse? Choose three correct answers.

Under which circumstance would someone need disability insurance?

Which is a possible benefit of having a good credit history?

Veronique and Lily each bought a piece of luggage that had the same price in different stores. The table below shows how they will pay for the item. Payment for PurchasesNamePayment TypePayment Amount (Including Finance Charges)Number of Months to Pay for ItemVeroniqueStore financed$2510LilyCredit card$357Who made the better financial decision and why?

Jaina and Tomas are being considered as new tenants in an apartment. The landlord looks at their creditworthiness because he wants to be sure his new tenant pays the rent on time and in full. The table below summarizes the information that was on their applications.Application informationQuestionsJainaTomasHow many years have you had your job?52What is your monthly salary?$1,850$2,500How many credit cards do you have?41How much debt do you have?$13,000$7,000How many times were you late with payments on credit cards in the past year?51Who will the landlord decide to be more creditworthy and why?

How do long-term financial goals differ from short-term financial goals?