Question 1

Provide an appropriate response.
-With tax-exempt investments, you never have to pay tax on the earnings.

Accepted Answer

A) True 
 B)False  True

Question 2

Answer the question.
-You intend to create a college fund for your baby. If you can get an APR of 4.0% and want the fund to have a value of $128,366 after 17 years, how much should you deposit monthly?

Accepted Answer

A) $484.41 
B) $374.31 
C) $7351.59 
D) $440.37 
A) $484.41 
B) $374.31 
C) $7351.59 
D) $440.37 D

Question 3

Provide an appropriate response.
-The average annual percentage yield (APY)that would give the same overall growth is the ______.

Accepted Answer

A) complete return 
B) total return 
C) annual return 
D) None of the above 
A) complete return 
B) total return 
C) annual return 
D) None of the above C

Question 4

Provide an appropriate response.
-Early in an installment loan term, the portion going toward interest is relatively high and the portion going toward principal is relatively low. As the term proceeds, the portion
Going toward interest gradually decreases and the portion going toward principal gradually
Increases.

Accepted Answer

A) True 
 B)False

Question 5

Provide an appropriate response.
-______, or income, represent money that has been collected.

Accepted Answer

A) Outlays 
B) Receipts 
C) Net income 
D) None of the above 
A) Outlays 
B) Receipts 
C) Net income 
D) None of the above

Question 6

Complete the sentence: On an annual basis the first set of expenses is ____ % of the second set of expenses.
-Wendy buys a $1 lottery ticket every day and takes 3 yoga classes per week which cost $16 each.

Accepted Answer

A) 63% 
B) 2% 
C) 15% 
D) 9% 
A) 63% 
B) 2% 
C) 15% 
D) 9%

Question 7

The expenses and income of an individual are given in table form. Find the net monthly cash flow (it could be positive ornegativ. Assume salaries and wages are after taxes, that 1 month = 4 weeks, and that 1 year = 12 months. Round youranswer to the nearest dollar.
-

Accepted Answer

A)  $-\$ 766$ 
B) $-\$ 405$ 
C) $-\$ 85$ 
D) $-\$ 445$ 
A)  $-\$ 766$ 
B) $-\$ 405$ 
C) $-\$ 85$ 
D) $-\$ 445$

Question 8

Provide an appropriate response.
-For any loan, the ______ is the amount of money owed at any particular time.

Accepted Answer

A) installment 
B) interest 
C) principal 
D) None of the above 
A) installment 
B) interest 
C) principal 
D) None of the above

Question 9

Provide an appropriate response.
-There is high risk for investing money in U.S. Treasury bills.

Accepted Answer

A) True 
 B)False

Question 10

Solve.
-Tim is in the 35% marginal tax bracket and claims the standard deduction. How much will his tax bill be reduced if he qualifies for a $470 tax credit?

Accepted Answer

A) $470 
B) $634.50 
C) $1192.50 
D) $164.50 
A) $470 
B) $634.50 
C) $1192.50 
D) $164.50

Question 11

Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductlons, and Exemptlons**

"Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$, which is where the $10 \%$ rate leaves off, and continuing up to $\$ 36,250$.
" "This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle-and high-income taxpayers.
-Kelly and Kurt are married filing jointly with a taxable income of $92,745. Calculate the amount of tax owed.

Accepted Answer

A) $15,044 
B) $23,186 
C) $12,311 
D) $15,936 
A) $15,044 
B) $23,186 
C) $12,311 
D) $15,936

Question 12

Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period.
-$2500 deposit at an APR of 4% with monthly compounding for 6 years

Accepted Answer

A) $2550.42 
B) $2541.48 
C) $14,046.64 
D) $3176.85 
A) $2550.42 
B) $2541.48 
C) $14,046.64 
D) $3176.85

Question 13

Solve the problem.
-You want to have a $75,000 college fund in 15 years. How much will you have to deposit now in an account with an APR of 6% and monthly compounding?

Accepted Answer

A) $31,930.29 
B) $29,940.49 
C) $30,561.18 
D) $30,490.29 
A) $31,930.29 
B) $29,940.49 
C) $30,561.18 
D) $30,490.29

Question 14

Complete the sentence: On an annual basis the first set of expenses is ____ % of the second set of expenses.
-Elena spends $4 per day on a coffee at the neighborhood cafe and $300 per month on food.

Accepted Answer

A) 6% 
B) 9% 
C) 41% 
D) 487% 
A) 6% 
B) 9% 
C) 41% 
D) 487%

Question 15

Provide an appropriate response.
-Which of the following is not a way the government borrows money from the public?

Accepted Answer

A) Selling bonds to investors 
B) Raising taxes 
C) Selling Treasury notes 
D) All of the above 
A) Selling bonds to investors 
B) Raising taxes 
C) Selling Treasury notes 
D) All of the above

Question 16

Solve the problem.
-The average cost of a 4-year college education is projected to be $120,000 in 16 years. How much money should be invested now at 6%, compounded quarterly, to provide $120,000 in 16 years?

Accepted Answer

A) $94,563.72 
B) $17,845.46 
C) $46,275.86 
D) $120,000.00 
A) $94,563.72 
B) $17,845.46 
C) $46,275.86 
D) $120,000.00

Question 17

Answer the question.
-Assume that you have a health insurance plan with the following provisions: · Office visits require a copayment of $35
· Emergency room visits have a $450 deductible (you pay the first $450)
· Surgical operations have a $2500 deductible (you pay the first $2500)
· You pay a monthly premium of $400
During a one-year period, your family has the following expenses: $$\begin{array} { l l } 
\hline \text { Expense } & \text { Total cost (before insurance) } \
\hline \text { Feb 18: Emergency room } & \$ 740 \
\text { Mar 13: Office visit } & \$ 100 \
\text { Apr 14: Surgery } & \$ 8200 \
\text { May 12: Office visit } & \$ 120 \
\text { Nov 23: Emergency room } & \$ 1120 \
\hline
\end{array}$$ Determine your health-care expenses for the year with and without the insurance policy.

Accepted Answer

A) With policy $7210,without policy $10,680 
B) With policy $11,610,without policy $10,820 
C) With policy $8270,without policy $10,280 
D) With policy $3870,without policy $10,280 
A) With policy $7210,without policy $10,680 
B) With policy $11,610,without policy $10,820 
C) With policy $8270,without policy $10,280 
D) With policy $3870,without policy $10,280

Question 18

Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period.
-$10,000 deposit at an APR of 4% with semiannual compounding for 12 years

Accepted Answer

A) $14,800.00 
B) $16,010.32 
C) $12,682.42 
D) $16,084.37 
A) $14,800.00 
B) $16,010.32 
C) $12,682.42 
D) $16,084.37

Question 19

Write the word or phrase that best completes each statement or answers the question.Decide whether the statement makes sense. Explain your reasoning.
-In 2005, the federal deficit was about 9 trillion dollars.

Accepted Answer

No, this statement does not ma

Question 20

The expenses and income of an individual are given in table form. Find the net monthly cash flow (it could be positive ornegativ. Assume salaries and wages are after taxes, that 1 month = 4 weeks, and that 1 year = 12 months. Round youranswer to the nearest dollar.
-

Accepted Answer

A) $\$ 264$ 
B)  $\$ 579$ 
C)  $\$ 497$ 
D)  $\$ 287$ 
A) $\$ 264$ 
B)  $\$ 579$ 
C)  $\$ 497$ 
D)  $\$ 287$

Provide an appropriate response. -With tax-exempt investments, you never have to pay tax on the earnings.

Answer the question. -You intend to create a college fund for your baby. If you can get an APR of 4.0% and want the fund to have a value of $128,366 after 17 years, how much should you deposit monthly?

Provide an appropriate response. -The average annual percentage yield (APY)that would give the same overall growth is the ______.

Provide an appropriate response. -______, or income, represent money that has been collected.

Complete the sentence: On an annual basis the first set of expenses is ____ % of the second set of expenses. -Wendy buys a $1 lottery ticket every day and takes 3 yoga classes per week which cost $16 each.

The expenses and income of an individual are given in table form. Find the net monthly cash flow (it could be positive ornegativ. Assume salaries and wages are after taxes, that 1 month = 4 weeks, and that 1 year = 12 months. Round youranswer to the nearest dollar. -

Provide an appropriate response. -For any loan, the ______ is the amount of money owed at any particular time.

Provide an appropriate response. -There is high risk for investing money in U.S. Treasury bills.

Solve. -Tim is in the 35% marginal tax bracket and claims the standard deduction. How much will his tax bill be reduced if he qualifies for a $470 tax credit?

Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period. -$2500 deposit at an APR of 4% with monthly compounding for 6 years

Solve the problem. -You want to have a $75,000 college fund in 15 years. How much will you have to deposit now in an account with an APR of 6% and monthly compounding?

Complete the sentence: On an annual basis the first set of expenses is ____ % of the second set of expenses. -Elena spends $4 per day on a coffee at the neighborhood cafe and $300 per month on food.

Provide an appropriate response. -Which of the following is not a way the government borrows money from the public?

Solve the problem. -The average cost of a 4-year college education is projected to be $120,000 in 16 years. How much money should be invested now at 6%, compounded quarterly, to provide $120,000 in 16 years?

Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period. -$10,000 deposit at an APR of 4% with semiannual compounding for 12 years

Write the word or phrase that best completes each statement or answers the question.Decide whether the statement makes sense. Explain your reasoning. -In 2005, the federal deficit was about 9 trillion dollars.

The expenses and income of an individual are given in table form. Find the net monthly cash flow (it could be positive ornegativ. Assume salaries and wages are after taxes, that 1 month = 4 weeks, and that 1 year = 12 months. Round youranswer to the nearest dollar. -

Thinking Critically

Approaches to Problem Solving

Numbers in the Real World

Statistical Reasoning

Putting Statistics to Work

Probability: Living With the Odds

Exponential Astonishment

Modeling Our World

Modeling With Geometry

Mathematics and the Arts

Filters

Exam 4: Managing Money

Provide an appropriate response. -With tax-exempt investments, you never have to pay tax on the earnings.

Answer the question. -You intend to create a college fund for your baby. If you can get an APR of 4.0% and want the fund to have a value of $128,366 after 17 years, how much should you deposit monthly?

Provide an appropriate response. -The average annual percentage yield (APY)that would give the same overall growth is the ______.

Provide an appropriate response. -______, or income, represent money that has been collected.

Complete the sentence: On an annual basis the first set of expenses is ____ % of the second set of expenses. -Wendy buys a $1 lottery ticket every day and takes 3 yoga classes per week which cost $16 each.

The expenses and income of an individual are given in table form. Find the net monthly cash flow (it could be positive ornegativ. Assume salaries and wages are after taxes, that 1 month = 4 weeks, and that 1 year = 12 months. Round youranswer to the nearest dollar. -

Provide an appropriate response. -For any loan, the ______ is the amount of money owed at any particular time.

Provide an appropriate response. -There is high risk for investing money in U.S. Treasury bills.

Solve. -Tim is in the 35% marginal tax bracket and claims the standard deduction. How much will his tax bill be reduced if he qualifies for a $470 tax credit?

Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period. -$2500 deposit at an APR of 4% with monthly compounding for 6 years

Solve the problem. -You want to have a $75,000 college fund in 15 years. How much will you have to deposit now in an account with an APR of 6% and monthly compounding?

Complete the sentence: On an annual basis the first set of expenses is ____ % of the second set of expenses. -Elena spends $4 per day on a coffee at the neighborhood cafe and $300 per month on food.

Provide an appropriate response. -Which of the following is not a way the government borrows money from the public?

Solve the problem. -The average cost of a 4-year college education is projected to be $120,000 in 16 years. How much money should be invested now at 6%, compounded quarterly, to provide $120,000 in 16 years?

Use the compound interest formula for compounding more than once a year to determine the accumulated balance afterthe stated period. -$10,000 deposit at an APR of 4% with semiannual compounding for 12 years

Write the word or phrase that best completes each statement or answers the question.Decide whether the statement makes sense. Explain your reasoning. -In 2005, the federal deficit was about 9 trillion dollars.

The expenses and income of an individual are given in table form. Find the net monthly cash flow (it could be positive ornegativ. Assume salaries and wages are after taxes, that 1 month = 4 weeks, and that 1 year = 12 months. Round youranswer to the nearest dollar. -

Thinking Critically

Approaches to Problem Solving

Numbers in the Real World

Statistical Reasoning

Putting Statistics to Work

Probability: Living With the Odds

Exponential Astonishment

Modeling Our World

Modeling With Geometry

Mathematics and the Arts

Filters