AnswersSHS Lifetime Fitness - 2021Understanding College Savings

Understanding College Savings — Unit test Answers

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1
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Companies report people to credit agencies if they

A
fail to pay their bills on time.
B
borrow too much money.
C
fail to use different types of credit.
D
use large amounts of credit at once.
2
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Yasmine plans to attend a four-year public university. She expects she will need to contribute $9,000 annually to her education. Which savings plan will help Yasmine save enough money to pay for one year of school, regardless of whether or not interest is earned on her savings?

A
$600 per month for 1 year
B
$350 per month for 2 years
C
$225 per month for 3 years
D
$200 per month for 4 years
3

Holly plans to attend community college next year. Her expenses are only $1,200 because her parents are paying the rest. Holly earned a $750 scholarship. How much will she need to pay from her savings?

$
$450
$
$750
$
$1,200
$
$1,950
4

Which is considered a good credit practice?

A
Use the credit card with the highest interest rate.
B
Make late payments.
C
Pay more than the minimum amount that is due.
D
Borrow more than one can afford to repay.
5

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?

J
Jessica is low risk and will pay her outstanding balances on time.
J
Jessica is low risk but will not pay her outstanding balances on time.
J
Jessica is high risk and will pay her outstanding balances on time.
J
Jessica is high risk but will not pay her outstanding balances on time.
6

A person’s credit score can range from a low of 300 to a high of what number?

Answer not available
7

1.

H
He should wait until his last year in high school to fill out the FAFSA.
H
He should start saving right away. It is never too early to start a savings account.
H
He should work hard throughout middle school and high school or it might be too difficult for him to excel later, since bad habits are hard to break.
H
He should try different sports and clubs in middle school and early high school. Then he should pick his favorites and invest more time in them.
W
While in high school, he should quit all extracurricular activities so he can work more hours and save money.
H
He should ask all his friends and neighbors to contribute to his college fund so it will grow faster.
8

Alphonse is attending college next year. He received this offer from a university. His parents told him they would pay for his room and board if he lives at home instead of in the dorms. He would only need to pay $2,000 for his car and insurance if he lives at home. Financial Analysis for UniversityCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$10,500$4,000Room & BoardWork-Study$11,500$2,000Which statements about the offer are true? Check all that apply.

A
The total cost per year is $22,000 if he lives in the dorm.
B
He would save $9,500 per year if he lives at home.
C
He would save $11,500 per year if he lives at home.
D
He has $6,500 in expenses that are not covered by financial aid if he lives at home.
E
He has $4,500 in expenses that are not covered by financial aid if he lives at home.
F
He will need to repay the $24,000 in scholarships, grants, and work-study money he receives during the four years of college.
9

Which describes the difference between a personal loan and a credit card?

A
Credit cards offer lump sums of money, while personal loans set a maximum amount a person can borrow.
B
Credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases.
C
Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow.
D
Personal loans are secured for small purchases, while credit cards are unsecured loans for large amounts.
10

Which is most likely to happen to consumers with good credit? Check all that apply.They can be approved for loans.They are denied a mortgage.They can receive lower interest rates.They are denied an unsecured loan.They can use credit in emergencies.They are forced into high interest rates.

A
They can be approved for loans.
B
They are denied a mortgage.
C
They can receive lower interest rates.
D
They are denied an unsecured loan.
E
They can use credit in emergencies.
F
They are forced into high interest rates.
11

Which are considered types of credit available to borrowers? Check all that apply.personal loansbondscredit cardsmortgagescashauto loansgift cards

A
personal loans
B
bonds
C
credit cards
D
mortgages
E
cash
F
auto loans
G
gift cards
12

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.

T
The total cost per year is $22,300.
S
She will need to repay $16,000 for each year of college.
F
Financial aid will cover $16,000 for each year of college with no need to repay.
F
Financial aid will cover $11,000 for each year of college with no need to repay.
S
She could use money from savings or parental contributions to pay the remaining $6,300 each year.
S
She could use a student loan to pay the remaining $6,300 each year.
13

This year, the annual tuition at a public four-year university is $5,290. Next year when Jarrod attends his first year, the tuition is expected to increase 4.5%. Jarrod has 1 year to save the amount of money equal to the tuition for his first year. What is the approximate minimum amount Jarrod should save monthly?

A
$441
B
$461
C
$553
D
$639
14

Richard’s annual college expenses are expected to total $17,745. He will receive $5,320 in grants. How much will Richard need to contribute to his annual college expenses?

A
$11,425
B
$11,465
C
$12,425
D
$12,465
15

Which information can be found on a person’s credit report? Check all that apply.

A
an unpaid utility bill that has been given to a collection agency
B
the person’s credit rating
C
the person’s yearly income
D
the person’s social security number
E
an inquiry from a bank that requested the person’s credit report
F
the person’s education level

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