AnswersDRHS GA-GSE Personal Financial LiteracyUnit Test

Unit Test — Unit test Answers

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Tamara earns her living as a salary plus commission employee. Her annual salary is $48,000, and she earns 4% commission on all sales she makes. If Tamara wants to make a total of $6,000 this month, how much in sales does she need to have? a. $30,000 b. $50,000 c. $100,000 d. $150,000 Please select the best answer from the choices provided

A
A
B
B
C
C
D
D
2
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The earnings of two employees are given below:Employee A: 6% commission on all salesEmployee B: 4% commission on the first $80,000 and 8% on anything over $80,000How much more does a straight commission employee make than the graduated commission employee for sales of $100,000? a.$1,200b.$1,600c.$2,000d.$3,200

A
A
B
B
C
C
D
D
3

How are loans and grants different?

A
Loans must be repaid, while grants are like gifts.
B
Grants must be repaid, while loans are like gifts.
C
By filling out the FAFSA, students can find out if they qualify for grants, but not loans.
D
By filling out the FAFSA, students can find out if they qualify for loans, but not grants.
4

Sophie is attending college next year. She just got information on the college costs and the financial aid package the college is offering. Sophie knows her parents can contribute $3,500 each year.Sophie’s College Costs & Financial Aid Package per YearCostsFinancial Aid PackageTuition & FeesGrants & Scholarship$11,750$9,000Room & BoardWork-Study$11,500$7,000How much will Sophie need to pay each year from her own savings and from loans?

A
$2,750
B
$3,750
C
$7,250
D
$10,750
5

Caitlin has finished her schooling and training to be a dental hygienist. She has two job offers that she is considering. Caitlin’s Job Offer Comparison Job 1: Albuquerque, NMJob 2: Ann-Arbor, MISalary$54,000$61,000Benefits$2,500 bonuses,health insurance,401KHealth insurance,401KAverage Monthly Rent & Utilities$925$1,300Which job would offer the best annual income considering the cost of living in each locale?

A
Job 2 is a better choice because the annual income after rent and utilities is $59,700 but that of job 1 is $55,575.
B
Job 2 is a better choice because the annual income after rent and utilities is $45,400 but the income for job 1 is $41,900.
C
Job 1 is a better choice because it costs $4,500 less per year to live there.
D
The jobs have equal annual incomes of $45,400 after rent and utilities so Caitlin should take the job in her favorite locale.
6

An employee makes an hourly rate plus any tips they earn. This tip employee made a total of $400 by working 28 hours last week. If $253 of their total earnings was their tips, what is their hourly rate of pay?a.$5.25b.$5.61c.$8.82d.$9.04

A
A
B
B
C
C
D
D
7

Martha will be entering high school in a couple of years. Which steps should she take to ensure she has money to pay for college? Check all that apply.

A
She should start or add to a college savings account so it can grow with deposits and earned interest.
B
She should start or add to a college savings account so it can grow with deposits and earned interest.
C
She should ask her parents if they have a college savings account set up for her.
D
She should ask her parents if they have a college savings account set up for her.
E
She should work to maintain high grades throughout school so she can qualify for scholarships.
F
She should work to maintain high grades throughout school so she can qualify for scholarships.
G
She should get involved in extracurricular activities like clubs and sports so she can discover what she enjoys and qualify for scholarships.
H
She should get involved in extracurricular activities like clubs and sports so she can discover what she enjoys and qualify for scholarships.
I
She should fill out the FAFSA immediately so she does not miss grants or scholarships she qualifies for.
J
She should fill out the FAFSA immediately so she does not miss grants or scholarships she qualifies for.
K
She should wait until her senior year of high school to start thinking about how to pay for college.
L
She should wait until her senior year of high school to start thinking about how to pay for college.
8

Michael will attend college in 5 years. He anticipates he will need $19,000 to pay for the first year. He currently has $6,400 in a savings account. Without including any interest earned, what is a reasonable estimate of the amount Michael needs to deposit into his savings account each month over the next 5 years to be able to pay for his first year of college?

$
$200
$
$350
$
$500
$
$650
9

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?

A
$8,000
B
$8,000
C
$11,000
D
$11,000
E
$15,500
F
$15,500
G
$17,000
H
$17,000
10

Which factor would be a valid influence on a career choice in the United States?

A
gender
B
race
C
birthplace
D
interests
11

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
12

Which aspect could have a positive impact on future salary in a job position?

A
The opportunity for advancement or promotion could result in higher pay.
B
The starting salary is very high, but the job outlook is poor.
C
The position offers more employee benefits than others like it.
D
The career choice requires less post-secondary education so less student loans are needed.
13

Laura estimated the total cost of attending a private four-year university using the information in the table. CategoryEstimated Cost – 1 yeartuition$29,500room and board$9,600books$2,125lab and facilities fees$850Laura received a grant that will pay for 30% of her annual estimated tuition and a scholarship that will pay for her books. What is the minimum Laura should expect to contribute to her college education for all four years?

A
$111,860
B
$117,810
C
$124,400
D
$132,900
14

Which would be considered part of an employee’s salary?

A
amount of taxes that will be deducted each pay check
B
amount an employee can expect to earn in gratuities from customers
C
amount of money the employee will earn each month
D
amount of matching funds the employer will pay to a retirement account
15

Cameron is choosing a career out of high school with no further training. The median salary for this career is $30,000. His friend Mateo is choosing a career that requires a college degree but has a median salary of $55,000. Over 20 years, what will be the difference between their incomes?

A
$25,000
B
$85,000
C
$500,000
D
$1,700,000
16

Work-study is a program that includes

A
working at an outside job to help pay for school.
B
taking a school job to help pay for an education.
C
agreeing to serve in the military for financial aid.
D
participating in a service program to receive aid.
17

Desmond told his two friends, Marley and Brianna, that he was awarded a $10,000 grant for college if he becomes a math or science teacher. Desmond wants to teach physics.Marley told him he should take the grant. Brianna told him not to take the grant. Which statement about their advice is true?

A
Marley is correct because a grant is like a gift and he can still get scholarships or loans to pay for the rest of his expenses.
B
Marley is correct because a grant is like a gift and he can still get scholarships or loans to pay for the rest of his expenses.
C
Marley is correct because he can take the grant and then study whatever he chooses without paying it back if he changes his mind about his career.
D
Marley is correct because he can take the grant and then study whatever he chooses without paying it back if he changes his mind about his career.
E
Brianna is correct because he cannot get scholarships if he takes the grant and scholarships would pay more of his education costs.
F
Brianna is correct because he cannot get scholarships if he takes the grant and scholarships would pay more of his education costs.
G
Brianna is correct because grants are like loans and must be paid back. He should wait and see what scholarships and work-study programs he qualifies for.
H
Brianna is correct because grants are like loans and must be paid back. He should wait and see what scholarships and work-study programs he qualifies for.
18

Which statement describes an hourly wage job?

A
Each paycheck is the exact same regardless of number of hours worked.
B
Each paycheck is less, even if an employer wants you to work more hours in a week.
C
If an employer wants the employee to work more hours in a week, the result is a larger paycheck.
D
If the business is closed for a holiday, the employee still gets paid regardless of available vacation hours.
19

Joaquin is offered vocational training that will cost $3,000 but will make him eligible for a promotion. Joaquin is trying to decide whether to get the training or put the money in savings for retirement. Which statement is true?

A
Joaquin should put the money in savings because retirement is expensive and he should have every penny he can.
B
Joaquin should put the money in savings because it will grow quickly with interest that he can use in retirement.
C
Joaquin should take the class because a promotion will mean a larger salary over the long term compared to a single cash advantage.
D
Joaquin should take the class because $3,000 is too small of an amount to bother putting away for retirement.
20

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.

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