AnswersGeneral Financial Literacy - Brinkerhoff - 2000 - 202627Planning for the Cost of College

Planning for the Cost of College — Unit test Answers

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Dante listed his assets and liabilities on a personal balance sheet. Dante’s Balance Sheet (August 2013)AssetsLiabilitiescash$900credit card$4,000investments$1,100student loan$1,000house$150,000mortgage$100,000car$8,000car loan$5,000Total Total Which statement is true about the value of Dante’s assets and liabilities?

A
He has $50,000 more in assets than in liabilities.
B
He has $50,000 more in liabilities than in assets.
C
He has $110,000 more in liabilities than in assets.
D
He has $160,000 more in assets than in liabilities.
2
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Aisha’s income statement for the month of June is shown. Which expression will find Aisha’s net income for June?

Question illustration
A
2,700 dollars divided by 1,300 dollars
Option A
B
1,300 dollars minus 2,700 dollars
Option B
C
1,300 dollars + 2,700 dollars
Option C
D
2,700 dollars minus 1,300 dollars
Option D
3

Rosetta listed her assets and liabilities on a personal balance sheet. Rosetta’s Balance Sheet (April 2013)AssetsLiabilitiescash$900credit card$4,000investments$1,100student loan$2,000 house$150,000mortgage$100,000car$8,000car loan$5,000Total Total If Rosetta sells her house and pays off the mortgage, how much should she receive (assuming there are no other costs associated with selling the house)?

A
$42,000
B
$50,000
C
$52,000
D
$60,000
4

Patrick has assets that total $9,500. His liabilities total $1,900. Which expression will find Patrick’s net worth?

A
9,500 dollars divided by 1,900 dollars
Option A
B
1,900 dollars minus 9,500 dollars
Option B
C
1,900 dollars minus 9,500 dollars
Option C
D
9,500 dollars minus 1,900 dollars
Option D
5

The table shows the cost of various expenses Rosaria expects to pay for one year at a private four-year college while living on campus.CategoryAmounttuition$36,259room/board$12,258books/lab fees$1,988How much should Rosaria expect to pay?$

A
50,505.00
B
50,565.00
C
52,505.00
D
52,565.00
6

Brandon owes his brother $120. He has a stamp collection worth $1,250 and he has $300 in a bank account. He also has a skateboard worth $95.Which are Brandon’s assets?

A
the stamp collection only
B
the bank account only
C
the stamp collection and the bank account only
D
the stamp collection, the bank account, and the skateboard
7

Amy is analyzing a job offer. Amy’s Salary AnalysisAnnual SalaryBenefitsAverage Monthly RentAverage Monthly Utility Costs$48,500401K matched up to $2,500/year,$5,000 in bonuses$1,100$200How much income with benefits can she expect?

A
$43,500
B
$48,500
C
$53,500
D
$56,000
8

The table shows the cost of various expenses Montrel expects to pay for one year at a public two-year college.CategoryAmounttuition$3,220room/board$7,650transportation$1,895books/lab fees$875How much should Montrel expect to pay?$

A
12,630.00
B
12,640.00
C
13,640.00
D
13,680.00
9

Eric wants to attend a public four-year university. He estimates that the average cost of one year at this university is $19,500. He can save at most $325 a month. Without factoring in interest, grants, or scholarships, what is the minimum number of months he needs to save in order to be able to pay for one year of college?

6
60
6
62
6
65
6
67
10

Enzo’s balance sheet for the month of July is shown. Enzo’s Balance Sheet (July 2013)AssetsLiabilitiescash$600credit card$4,000investments$500student loan$2,500house$120,000mortgage$80,000car$6,000car loan$2,000Total$127,100Total$88,500Which expression finds Enzo’s net worth?

Question illustration
A
127,100 dollars minus 88,500 dollars
Option A
B
127,100 dollars divided by 88,500 dollars
Option B
C
88,500 dollars + 127,100 dollars
Option C
D
88,500 dollars minus 127,100 dollars
Option D
11

How can an employer's retirement matching program encourage an employee to save for their retirement?

A
It increases an employee’s regular paycheck.
B
It ensures financial stability in the short term.
C
It boosts savings by adding extra funds to the employee's contribution.
D
It enhances employee knowledge through mandatory financial seminars.
12

The document shows a 1040 form.

Question illustration
A
state tax.
B
local tax.
C
federal tax.
D
sales tax.
13

The chart shows taxable income.

Question illustration
A
Income is what a person earns, while taxable income reflects deductions subtracted for relevant expenses.
B
Income is what a person earns, while taxable income reflects what is left after paying federal taxes.
C
Income is what a person earns, while taxable income reflects what is left after paying local and state taxes.
D
Income is what a person earns, while taxable income reflects what is received from the IRS in a tax refund.
14

Read the scenario.Jamal is passionate about education and believes that everyone should have access to quality learning opportunities. He decides to donate to a local nonprofit organization that provides scholarships to underprivileged students. During tax season, Jamal finds out that his charitable donations impacts his taxes.How does Jamal's charitable donation to the nonprofit organization impact his taxes?

A
The donation reduces Jamal's taxable income, lowering the total amount of owed taxes.
B
The donation does not affect Jamal's taxes at all, as it is not a tax-deductible contribution.
C
The donation increases Jamal's tax refund, as the organization provides him with a tax credit.
D
The donation results in Jamal owing more in taxes, as it is considered additional income.
15

Marco predicts he will have $18,750 in expenses for one year of college. He expects to receive $3,450 in grants annually. How much will Marco need to contribute to one semester of his education?

A
$5,925
B
$7,650
C
$11,850
D
$15,300
16

Lenora is a college student with a student loan of $7,500. Her tuition is $3,200 per year. She owns $470 worth of text books and a has a laptop computer worth $950. She also has a meal plan at school for which she pays $250 per month.Which is one of Lenora’s assets?

A
the meal plan
B
the text books
C
the student loan
D
the tuition
17

Which represents an employee benefit?

A
wage paid per hour of work
B
health-insurance plan with company-paid premiums
C
schedule with weekends off
D
gratuity given by customers or clients
18

In addition to federal income tax, many people also pay

A
corporate tax.
B
state income tax.
C
local medicare tax.
D
local social security tax.
19

Carly will be going to college in 3 years. She anticipates that she will need $12,000 to pay for the first year. She currently has $2,900 in a savings account. Without including any interest earned, what is a reasonable estimate of the amount Carly needs to deposit into the savings account per month over the next 3 years to be able to pay for her first year of college?

A
$150
B
$250
C
$350
D
$450
20

How is a student loan different from a scholarship?

A
A student loan must be paid back, but a scholarship is not paid back.
B
A scholarship must be paid back, but a student loan is not paid back.
C
A student loan is a form of financial aid, but a scholarship is not.
D
A scholarship is a form of financial aid, but a student loan is not.

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