Unit Test — Unit test Answers

The Smiths were just approved for a 25 year mortgage at an 11% fixed rate. If they had not filed bankruptcy in the past, they could have gotten a rate of 7%. If their loan amount is $128,000, how much more per month will the Smiths be paying for their mortgage as a result of their bankruptcy?a.$349.86b.$125,840.78c.$904.68d.$235.09

Which of the following can not be discharged by filing bankruptcy?a.car loanb.credit card debtc.mortgaged.student loan

Jerry has a credit card debt of $15,600 that he would like to reduce by applying $8,500 of his inheritance money to the balance. In addition, he would like to modify his debt payment plan to pay off the remaining balance in 24 months rather than 60 months. His credit card has an APR of 18%. How much will these changes save Jerry in finance charges (interest)?a.$1,407.04b.$3,302.59c.$6,760.96d.$8,168.40

Which of the following is least likely to be a warning sign that one's debt is at a critical point?a.all credit cards are at their limitsb.having several credit cardsc.making only minmum payments on credit cardsd.using cash advances to pay bills

A consumer charges a $2,530.16 purchase on a credit card. The card has a daily interest rate of 0.042%. If the balance is paid off at the end of 30 days, how much interest will the consumer pay? a. $0.32 b. $3.19 c. $31.88 d. $318.78 Please select the best answer from the choices provided

Shaquil needs to borrow $400. The loan company charges him $80 in fees for the loan. Shaquil calculates that the annual percentage rate (APR) on his loan is 250%. Approximately what is the term of Shaquil’s loan?a.7 daysb.29 daysc.46 daysd.73 days

In general, reducing the present value (PV) of a credit card while keeping the number of periods (n) and interest rate (i) the same will _____.a.decrease the monthly payment (P)b.increase the monthly payment (P)c.eliminate the monthly payment (P)d.have no effect on the monthly payment (P)

How is the interest rate on a payday loan calculated?a.loan amount divided by total feesb.total fees divided by loan amountc.total fees divided by days of loand.APR divided by 365

Dynatashia has a list of items she needs to buy at the store. She has written down the items and the advertised prices as shown: Hamburger – $3.99 per pound Hamburger buns – $1.29 2-liter soda – 3 for $2.00 Dynatashia buys 1.5 pounds of hamburger, 1 package of buns and 3 of the 2-liter bottles of soda. Her receipt is shown below. 2-ltr soda 2@3/$2 $1.34 Hambrg 1.5 [email protected] $5.99 Hbuns [email protected] $1.69 2-ltr soda 1@3/$2 $0.67 Determine if Dynatashia's receipt is correct. a. Yes, Dynatashia's receipt is correct. b. No, Dynatashia paid too much for soda. c. No, Dynatashia paid too much for hamburger. d. No, Dynatashia paid too much for buns. Please select the best answer from the choices provided.

Susan makes a purchase of $175 and is charged 7.75% for sales tax. What is the total cost of the purchase if Susan charges it on a credit card with a daily interest rate of 0.039% and pays the balance off at the end of 30 days? a. $176.17 b. $186.70 c. $190.77 d. $200.26 Please select the best answer from the choices provided

James has a balance of $1,230 on his credit card that has an APR of 24%. He currently pays the minimum monthly payment of $30.75. If James wants to pay off his balance in 18 months, determine the monthly payment he would need to make. Choose the following modification with the least cuts to his current expenses that will allow James to pay off his balance in 18 months. Income Wages $3,015.00 Expenses Rent $1250.00 Utilities $432.45 Food/Clothes $345.00 Entertainment $255.00 Car $360.00 Credit Card $30.75 Cell Phone $103.89 Net Income $237.91 a. James can eliminate $83 from Food/Clothes. b. James can eliminate $25 from Food/Clothes and $27 from Entertainment. c. James can eliminate $15 from Food/Clothes and $22 from Entertainment. d. The minimum payment is enough to pay off the balance within 24 months. Please select the best answer from the choices provided

Sarah has a credit card balance of $9,450 with an APR of 17%. With her current budgeted payment, Sarah will be able to pay off this debt in 36 months. But Sarah’s best friend just invited her to spend two months in Europe with her in 9 months. Wanting to have her credit card balance paid off before she goes to Europe, Sarah decides to take on a second job. What additional monthly income will Sarah need in order to pay off her credit card in 9 months?a.$336.92b.$467.23c.$788.85d.$1125.77

Xavier buys a computer for $525, which includes taxes. He pays for the computer over a 12-month period by paying $48.13 per month. Which statement about Xavier’s purchase is most likely true?

Based on a $500 loan amount, rank the following companies from the lowest to highest annual percentage rate (APR).CompanyFees ChargedTerm of LoanA$6020 daysB$5012 daysC$7515 daysD$1008 daysa.A, B, C, Db.B, A, C, Dc.D, B, C, Ad.D, C, B, A

Herky and Elaina want to compare their investment accounts to see how much they will have in the accounts after eight years. They substitute their values shown below into the compound interest formula.Compound Interest AccountsNamePrincipalInterest RateNumber of YearsCompoundedHerky$5005%8Once a yearElaina$4006%8Once a yearWhich pair of equations would correctly calculate their compound interests?

Tamari has a monthly income of $4,250 and she wants to determine her monthly net income. She calculates that her fixed expenses are $1,955 and her variable expenses are 28% of her monthly income. How much is Tamari’s monthly net income?a.$1,105b.$2,295c.$1,190d.$3,060

Which of the following choices is not a step that can reduce your spending?a.eating at home, rather than dining outb.using budgeted cash onlyc.forgoing premium cable TV channelsd.purchasing reduced fat lattes during the week

Which of the following phrases best summarizes Chapter 7 bankruptcy?a.discharge debt and keep propertyb.discharge debt and liquidate assetsc.reorganize debt and keep propertyd.reorganize debt and liquidate assets

Marcia has two credit cards and would like to consolidate the two balances into one balance on the card with the lower interest rate. The table below shows the information about the two credit cards Marcia currently uses. Card ACard BAmount$1,879.58$861.00APR14%10%Monthly Payment$43.73$18.29After 5 years, how much will Marcia have saved in interest by consolidating the two balances?a.$1,526.40b.$2,422.80c.$105.00d.$227.40

In general, reducing the number of periods (n) used to pay off credit card debt but keeping the present value (PV) and interest rate (i) the same will __________.a.reduce the monthly payment (P)b.increase the monthly payment (P)c.eliminate the monthly payment (P)d.have no effect on the monthly payment (P)