Consumer Math

8 September 2022
4.7 (114 reviews)
79 test answers

Unlock all answers in this set

Unlock answers (75)
question
One reason people do not use cash as much to pay for items is because _____
answer
If it is stolen, it is not traceable.
question
You purchase 3 CDs for $13.99 each. The sales tax is 4%. You have $60.00. How much is your change
answer
$16.35
question
Credit cards are different from debit cards because ____.
answer
debit cards take money directly from your checking account
question
Which of the following is an advantage of using a debit card compared to using a check or credit card?
answer
It is harder for a thief to use your debit card.
question
You purchase 10.75 gallons of gasoline at $2.45/ gallon. You also bought gum ($0.65) and windshield wiper fluid ($4.97). The state has a food tax of 4% and you gave the clerk $20.00. How much is charged to your debit card?
answer
11.99
question
The "Limited Plan" offers a 15% discount for power usage between 7pm - 9am if most of your usage happens during that time. If not, then you lose your discount and you pay a 20% premium on the usage outside of that time. The cost per kilowatt hour is $0.05432. How much would you have paid in March if you used 450 KWH 7pm - 9am and 465 KWH 9am - 7pm?
answer
$54.75
question
When you estimate expenses for a month, you should _____.
answer
Add expenses for rent/mortage, utilities, food, and gas.
question
Suppose you have a bi-weekly mortgage payment of $657. If there are typically 4 weeks in a month, what do you need to do to estimate your monthly mortgage payment?
answer
Multiply it by 2, then round
question
Rent is $978. Phone charges last month were $54.89. Groceries cost about $93/ week. What is a good estimate of your monthly expenses?
answer
$1,400.00
question
Bi-weekly mortgage is $455. Monthly phone charges are $34.95. The electric bill last month was $65.88. Groceries cost about $87/ week. What is a good estimate of your monthly expenses?
answer
$1,359.00
question
If you placed $1,000.00 in a savings account with an interest rate of 4.5%/ month versus an account with 3.75%/ month, how much more interest could you earn in that month?
answer
$7.50 more
question
Principal is _____.
answer
The original amount invested
question
Interest is calculated by _____.
answer
Multiplying the principal by the interest rate and the time
question
You invest $2,000.00 at a rate of 4% APR for a 3 months. How much interest did you earn?
answer
$20.00
question
You earn $10.00/hour. You invest $4,000.00 at an interest rate of 5% APR for a year. How much interest did that savings earn in a year in terms of hours of work?
answer
20 hours
question
voluntary deductions include
answer
health insurance premiums
question
you work 40 hours/week for 52 weeks and are given the option to be paid hourly or to go on salary in which situation will you earn the most
answer
15.00/hour and a 2,000 bonus at the end of the year
question
you work 40 hours for 50 weeks and are given the option to be paid hourly or to go on salary in which situation will you earn the most
answer
30,000/year with a 10% bonus
question
FICA is a
answer
involuntary deduction based on a percentage of gross pay
question
Which of the following statements is best supported by this lesson?
answer
Rewarding yourself with a small treat every now and then is probably okay.
question
A person or company that allows others to borrow money is called _____.
answer
a lender
question
Your cell phone plan is $35.98/month plus a utilities tax of 6.5% APR. During the year, you go 40 minutes over your plan at a rate of $0.35/minute. How much do you pay for the overages?
answer
$14.91
question
You have a land-line telephone that costs $25.95/month plus a utilities tax of 4.5% APR. How much will you pay for your telephone use in a year?
answer
$325.41
question
In terms of a loan, contractually means you _____.
answer
agree to the terms of the loan and are obligated to pay according to those terms
question
Interest rates on loans are determined by ____.
answer
your credit profile
question
The better your credit profile is, the _____.
answer
lower your interest rate and the more you may borrow
question
You have a loan for $1,000.00 at 7.65% APR. $100.00 of the loan is due each month and there is a penalty of 2% on the original amount when not paid. If you do not pay anything on the loan during the year and assuming there is no compounding, how much will you owe in total?
answer
$1,316.50
question
A fee charged for not paying a bill is commonly called _____.
answer
a late payment/missed fee
question
Interest charged when you miss a payment is called _____.
answer
accrued interest
question
Your original purchase price was $825.00 plus 7% sales tax. You enter into an agreement where the interest (12.5% APR) is waived for the first 12 months provided you make the required monthly payments; otherwise the interest is accrued from the date of purchase. You miss the first payment due date. The late fee is $35.00. How much is the interest?
answer
$9.20
question
How much is the interest if you do not pay the second month?
answer
$9.66
question
When you owe money, it is _____.
answer
a debt
question
Doris Debtor got in trouble because _____.
answer
she had an unexpected event and no savings
question
You invest $75.00 the first month and $1,000.00 the second month at 3.75% APR. How much interest do you accrue at the end of the second month?
answer
$3.36
question
When investing in a savings plan, it is better to _____.
answer
invest all the money you can in the beginning at the highest compounding interest rate possible, and then add money periodically
question
Items that are wants are considered to be _____
answer
luxuries
question
Realized income is also known as _____.
answer
net income
question
You are paid $12.75/hour. You work 40 hours/week for 4 weeks. Your involuntary deductions are FICA (7.65%), federal withholding (12%), and state withholding (7%). How much is your realized income?
answer
$1,496.34
question
Your gross pay is $1,935.00. Your involuntary deductions are FICA (7.65%), federal withholding (13%), and state withholding (9%). How much are you allowed for housing and fixed expenses?
answer
$490.06
question
Brand named items are _____.
answer
luxuries
question
A rule of thumb refers to _____.
answer
a general rule most people follow
question
Item Cost Item Cost Store brand soap $2.99 Name brand soap $3.95 Name brand shoes $38.65 Store brand shoes $20.35 Name brand socks (3 pairs/pack) $6.89 Store brand socks (3 pairs/pack) $7.25 Store brand khakis for work $25.94 Name brand khakis for work $34.50 Name brand dress shirt $24.95 Store brand dress shirt $21.65 Using the table, what is the cost of the luxury items?
answer
$108.94
question
How much do you save by purchasing the store brand items instead of the name brand items from the table above?
answer
$30.76
question
A house is used as _____ for a loan.
answer
collateral
question
Most credit cards are _____ debt.
answer
unsecured
question
You have a balance of $1,678.00 on a credit card with a 15.75% APR. How much interest is accrued if you pay nothing on the principal after 3 months?
answer
$66.07
question
You carry a balance of $2,065.00 on a credit card at a 17.25% APR for 5 months. How much is your total payment by the fifth month
answer
$2,213.42
question
The current value of a house is its _____.
answer
market value
question
As you pay your mortgage, your equity _____.
answer
increases
question
You purchase a home for $253,600.00 with a mortgage rate of 3.75% APR. How much interest is due after your first month?
answer
$792.50
question
In order to answer this question, remember you purchased a home for $253,600.00 with a mortgage rate of 3.75% APR. If you pay $1,500.00 toward the first month's payment, how much is applied toward the principal?
answer
$707.50
question
Charge cards _____.
answer
must have their balances paid in full each month
question
You should always pay more than the _____.
answer
minimum due
question
You have $2,675.00 on a credit card with a 15.75% APR. You miss your minimum payment and there is a late fee of $29.00. How much is your balance at the beginning of the second month?
answer
$2,739.11
question
You take out a cash advance of $1,670.00 on a credit card with a 2% cash advance fee and a 13.5% APR. What is the amount due by the end of the month?
answer
$1,722.56
question
A check card is also known as a _____.
answer
debit card
question
_____ by credit card companies are meant to get you to use the credit card.
answer
Incentives
question
You have a credit card with a balance of $1,758.64. The interest is 12.75% APR. A late payment fee of $35.00 is added to the principal if you pay after the first month due date of 12/20. You make a payment for $100.00 on 12/20. How much interest did you pay?
answer
$18.69
question
You have a credit card with a balance of $1,758.64. The interest is 12.75% APR. A late payment fee of $35.00 is added to the principal if you pay after the first month due date of 12/20. You missed your payment but pay $100.00 the next month on 1/20. What is your new principal balance?
answer
$1,731.59
question
Most credit card incentive programs give _____.
answer
cash back
question
To calculate a rewards program incentive, you _____.
answer
use the percentage of a number
question
A credit card gives 2% cash back on purchases. You purchase $1,685.90 in items with that card. What is your reward amount?
answer
$33.72
question
If the credit card from the previous question has an interest rate of 14.75% and you do not make a payment the first month on the $1,685.90 balance, how much is the difference between the interest and reward? (Remember, the reward is $33.72.)
answer
$13.00
question
When calculating interest accrued, you use the _____.
answer
APR
question
Closing a credit card usually ____ your debt ratio.
answer
increases
question
You have four credit cards. Each has a balance of $450.00, but their credit limits are $800.00, $1,200.00, $1,300.00, and $1,500.00. Paying off and closing which card would decrease your debt ratio?
answer
the $800.00 limit card
question
You pay off the $800.00 credit limit card from the previous problem. What happens to your debt ratio? (Remember, in the previous problem you have four credit cards. Each has a balance of $450.00, but their credit limits are $800.00, $1,200.00, $1,300.00, and $1,500.00.)
answer
decreases by 4%
question
Credit profile shows _____.
answer
many parts such as credit history, debts, and payment history
question
Your payment history is ____ of the credit score.
answer
35%
question
If you are just building your payment history, how many points from a perfect score will you possibly miss?
answer
280 points
question
You have a score of 700 but your credit score gets affected by having too much debt and you lose 5% of your credit score. What is your new score?
answer
665 points
question
When you owe money, you are a _____.
answer
debtor
question
Debt ratio is calculated by _____.
answer
adding all that you owe and dividing by your total available credit limit
question
Using the table below, if your credit score is 750, how much will you pay in interest by the end of 1 month if you owe $2,375.00? Score <500 501-650 651-750 751-800 Rate (APR) 15.75% 12.75% 9.25% 5.75%
answer
$18.31
question
You have two credit cards. One has a balance of $1,675.00 at a 9.75% APR and the other has a balance of $2,378.00 and is dependent upon your credit score. Your score is 650. How much interest is accrued in the first month? Score <500 501-650 651-750 751-800 Rate (APR) 15.75% 12.75% 9.25% 5.75%
answer
$38.38
question
FICO stands for ______.
answer
Fair-Isaac Corporation Score
question
The type of credit card you want to pay in full, on time, every time is ____
answer
low credit limit, high interest
question
You owe $3,450.00. Which credit limit gives you an acceptable debt ratio?
answer
$7,000.00
question
You have 3 credit cards: $990.34 (credit limit: $3,500.00), $2,365.78 (credit limit: $4,600.00), and $5,897.65 (credit limit: $8,000.00). You pay off the lowest balance and close the card. What happened to your debt ratio?
answer
It increased.