Consumer Responsibilities — Unit test Answers

Jason is looking for an engagement ring to offer his girlfriend. He has found a similar ring at each of four different jewelry stores. He doesn't have enough money to pay for the ring in cash, so he is planning on opening a line of credit (credit card) at the store he ends up buying the ring from. The chart below outlines the difference in the price of the rings the different stores offer as well as the difference in credit options. Jason plans to pay off the ring purchase in 36 months. According to the information in the table, which of the jewelry stores will have the cheapest ring in the end? StorePrice ($)Credit Card APRJessie's Jewelry$1,250.0019%Über Pawn$1,328.0018.5%Diamonds Forever$1,199.0021%Drake and Family Gold$1,219.0020% a.Jessie's Jewelryb.Über Pawnc.Diamonds Foreverd.Drake and Family Gold

Which of the following statements is true?a.A 30 year fixed mortgage will always result in the lowest payment.b.You must have at least a 20% down payment to get a competitive interest rate.c.The lower your interest rate is, the lower your monthly payments are.d.The faster you pay off your mortgage, the lower your monthly payments are.

The Johnsons are buying a house that costs $210,000 and can afford a 20% down payment. If the Johnsons want the lowest monthly payment, which loan option would you recommend?a.30 year FHA, 3.5% down at a fixed rate of 6.25%b.30 year fixed, 20% down at a fixed rate of 6%c.30 year fixed, 10% down at a fixed rate of 6%d.15 year fixed, 20% down at a fixed rate 5.5%

As a New Year's resolution, Jimmy has agreed to pay off his 4 credit cards and completely eliminate his credit card debt within the next 12 months. Listed below are the balances and annual percentage rates for Jimmy's credit cards. In order to pay his credit card debt off in the next 12 months, what will Jimmy's total minimum credit card payment be? Credit CardCurrent BalanceAPRA$563.0016%B$2,525.0021%C$972.0019%D$389.0017% a.$321.83b.$361.45c.$374.65d.$411.25

Tim would like to use his income tax return to pay off one of his four credit cards. His previous plan was to pay off all four credit cards in the same timeline of 36 months. He wants to eliminate the card that is charging him the most interest on a monthly basis. The chart below outlines Tim's four credit cards, their balances, and their APRs. Which credit card should Tim use his tax return to pay off? Credit CardBalanceAPRA$1,260.0012%B$900.0018%C$1,290.009%D$1,200.0016% a.Ab.Bc.Cd.D

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.

Verona goes to a business that offers tax refund anticipation loans because she really wants to get her money right now and not wait. They calculate her refund to be $985 and charge her $130 in fees for the loan. If the term on her loan is 15 days, what is the annual percentage rate on her loan?

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?

Jaiden is in 6th grade and plans to attend college. He has created a college preparation plan. 1. He will fill out the FAFSA form and send it in immediately.2. He will ask his parents if they have a college savings account.3. When he gets to high school, he will start trying harder in school so he can qualify for academic scholarships.4. During his last year of high school, he will get involved in sports and clubs he enjoys to qualify for scholarships.5. Upon graduation, he will start saving money for college.Which statements identify errors in Jaiden’s plan? Check all that apply.

The table shows a schedule of the first year of Kamil’s payment plan for a car. Kamil’s Payment Plan for the First YearYearBalanceMonthly PaymentEnd of YearBalance1$13,086.72$363.52$8,724.48 How many years will it take Kamil to pay off the loan?

Companies report people to credit agencies if they

This table can be used to organize Gigi’s credit card balances and payments over 6 months. The annual percentage rate on the credit card is 14%.Gigi’s Credit Card PaymentsMonthBalancePaymentInterest RateInterest Charged1$650$3000.01167$4.082$354.08$500.01167 3$307.63$500.01167 4$260.64$500.01167 5$213.10$500.01167 6$165$500.01167 What is the amount of interest charged for the first 6 months?$

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.

Which is a practical action to take to avoid filing for bankruptcy?

If the purchase price for a house is $345,000, what is the monthly payment if you put 10% down for a 30 year loan with a fixed rate of 6.375%?a.$1,569.27b.$1,937.12c.$2,152.35d.$3,314.59