Understanding College Savings — Unit test Answers

The annual tuition at a public two-year college last year was $3,200. For the new school year, Elizabeth’s first year in college, the tuition is expected to increase 5%. She saved the same amount monthly to prepare for the cost of her tuition. What is the minimum amount Elizabeth should have saved monthly during the previous year?

Tyler is using a credit card to purchase a television. Which of the following should Tyler expect? Check all that apply.

Dustin estimates it will cost $7,721 annually to attend a public four-year college. He will receive $1,930 in grants. How much is Dustin’s estimated annual contribution to his college education?$

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Annika is attending college next year. She just got information on the college costs and the financial aid package the college is offering. Annika knows her parents can contribute $7,500 each year.Annika’s College Costs & Financial Aid Package per YearCostsFinancial Aid PackageTuition & FeesGrants & Scholarship$21,500$10,500Room & BoardWork-Study$13,500$9,000How much will Annika need to pay each year from her own savings and from loans?

Which statement is true of both mortgages and auto loans?

Darian has decided to attend an out-of-state public four-year university. His expected expenses are shown in the table.CategoryAnnual Expected Expense ($)tuition$18,900room/board$7,650books/fees$1,475other expenses$2,350Darian expects to get $7,500 in grants each year. What is the minimum amount he should expect to contribute for four years at the university?

Aneesha determined that the cost of attending her public four-year college in her first year will be $6,220. If the average cost is expected to increase by 6%, what will be the cost of attending her second year in college?

Which information is found on a credit report?

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?

Isabella bought a CD player at the store. She will receive the bill at the end of the month. She plans to pay $30 each month until the bill is paid in full. How did Isabella pay for the CD player?

A lender is assessing customers for loans. The credit scores of four customers are below.IdaCorrineBruceRoland820550390610Which person will the lender assess as having the lowest risk?

Read the scenario.Jay and Laura have been dreaming of purchasing their first home together. They've been diligently saving and have managed to accumulate a significant sum for a down payment.How does their decision to make a larger down payment benefit their financial situation as they purchase a home?

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?

Javier is considering two options for college. Option A: Complete the first two years of schooling at a community collegeand then transfer to a university.Option B: Complete all four years of schooling at the university.Community College Financial AnalysisCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$3,000$1,000Room & Board $1,000 University Financial AnalysisCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$10,000$15,000Room & BoardWork-Study$11,500$4,000Which statement about the cost of the options is true?

Read the scenario.Casey has been saving for a new car and is ready to make a purchase. Having a substantial amount to put down as a down payment, Casey approaches the car dealership. The salesperson and the loan officer view Casey's willingness to make a high down payment positively.Why would Casey be considered a lower risk by the lender for planning to make a high down payment?

Which term is defined as a loan given to students to help pay for education-related expenses?

Stephen plans to attend community college for two years. His expenses are only $2,000 each year, because his parents are paying the rest. He earned a one-time $900 scholarship. How much will he need to pay for the two years of college from his savings or by working?

In determining whether to issue a loan, banks are not allowed to ask about an applicant’s