Download Oct. 28 Homework/Test Review File

Unit 4 Test Review: Financial Literacy
1. Kayla invested $3200 in each of two savings accounts. Account A pays 2.5% simple interest, while Account
B pays 2.5% compound interest, with interest compounded annually (at the end of each year).
a.
Calculate the total value of Account A after 6 years. Explain your calculation and show any formulas
you used.
b.
Calculate the total value of Account B after 6 years. Show any formulas you used.
c.
Which account will be worth more after 6 years? How much more?
2. In order to examine her financial health, Julia made this list of things she owns and money she owes.
Bank Accounts
Musical Instruments
$15,275
$6880
Student Loan
$11,290
Home
$221,000
Car
$14,555
Mortgage
$175,350
Car Loan
$4235
Credit Card Balance
$5275
a.
Divide Julia’s list into assets and liabilities.
b.
Calculate Julia’s net worth.
3. In Minnesota, the state sales tax rate is 6.875%.
a.
Write an equation that you can use to find the cost y, including sales tax, for an item with a list price
x.
b.
The price tag on an HDTV gives the price as $560. There are no discounts available. What will be the
total cost for the TV, including sales tax, in Minnesota?
c.
If the price of a tablet computer sold in Minnesota is $513 including sales tax, what is the list price of
the computer?
4. Rebecca earns $4250 per month, of which 24% is taken out of her paycheck for federal and state income taxes
and other required deductions. Last month she spent $975 for rent and $317 for food. What percent of her
take-home pay did she spend on rent and food combined?
5. The Ramirez family has created a list of anticipated monthly expenses.
Category
a.
Amount
Mortgage Payment
$1140
Property Tax
$360
Utility Bills
$225
Food
$600
Transportation
$300
Entertainment
$180
Miscellaneous
$195
Determine the percentage of the total expenses represented by each category on the list.
Mortgage Payment:
Property Tax:
Utility Bills:
Food:
Transportation:
Entertainment:
Miscellaneous:
b.
Mr. and Mrs. Ramirez both have jobs for which 22% of their earnings are taken out of their
paychecks for taxes. How much would they need to earn together per month before taxes to have
enough income to cover all the expenses in their budget?
c.
Mr. and Mrs. Ramirez have set a goal of saving $250 per month, in addition to paying for all the
items in their budget. How much would they need to earn together per year before taxes in order to
meet this goal?
____
6. The sales tax rate in Connecticut is 6.35%. If Megan buys a jacket with a $45.00 price tag, what is the total
amount she will pay for the jacket?
a.
b.
c.
d.
____
$2.86
$45.00
$47.70
$47.86
7. The circle graph represents the after-tax budget for the Williams family. If the total monthly budget is $3750,
which is the best estimate for the food budget?
a.
b.
c.
d.
$625 per month
$1250 per month
$937.50 per month
$468.75 per month
8. Define simple interest and compound interest. Compare the two types of interest.
9. Define net worth.
10. Define assets and liabilities. Write a comparison statement for assets and liabilities.