Personal Finance Cumulative Exam Review

Reg has just purchased a new car. The car had a list price of $22,499, and he was responsible for 7.96% sales tax, a $2,138 vehicle registration fee, and a $262 documentation fee. Reg’s financing has an interest rate of 10.27%, compounded monthly, and a duration of three years. If Reg makes a monthly payment of $773.89, which of the following was his down payment? Round all dollar values to the nearest cent.

• $2,000

• $2,200

• $2,500

• $2,800

Tyrell has a bankruptcy on his credit report and therefore pays higher interest rates on his current loans. He calculates that the extra money he pays in additional interest each year, if invested at the rate of 2.5% for one year, could earn him simple interest totaling $300. How much does Tyrell pay in additional interest each month?

• $90

• $100

• $1,000

• $12,000

A password is 4 characters long and must consist of 3 letters and one number. If letters cannot be repeated and the password must end with a number, how many possibilities are there?

• 175,760

• 158,184

• 156,000

• 140,400

The Lopez family is putting $275 monthly into a savings account for Verona’s college education. The family anticipates they will need to contribute $10,000 toward her first year of college, which is in 3 years. Which best explains whether or not the family can expect to have enough money after saving for 3 years ? Assume the savings account accrues interest

• The family will not have enough money. They will have saved only $8,250.

• The family will not have enough money. They will have saved only $9,900.

• The family will likely have enough money. They will have saved $8,250 and have accumulated interest.

• The family will likely have enough money. They will have saved $9,900 and have accumulated interest.

This year, the annual tuition at a public four-year university is $5,290. Next year when Jarrod attends his first year, the tuition is expected to increase 4.5%. Jarrod has 1 year to save the amount of money equal to the tuition for his first year. What is the approximate minimum amount Jarrod should save monthly?

• $441

• $461

• $553

• $639

Yasmine plans to attend a four-year public university. She expects she will need to contribute $9,000 annually to her education. Which savings plan will help Yasmine save enough money to pay for one year of school, regardless of whether or not interest is earned on her savings?

• $600 per month for 1 year

• $350 per month for 2 years

• $225 per month for 3 years

• $200 per month for 4 years

Ariel wants to compare the salaries for positions she was offered at two companies. What should she consider in this process? Check all that apply.

• She should research the cost of living of different locations to compare against the offered salaries.

• She should research the benefits included in each offer.

• She should research the average salary of similar positions to see if the offers are fair.

• She should take the position that offers the largest salary.

• She should take the position that has the lowest cost of living.

In the wrong hands, which of the following pieces of personal information would present the greatest risk for identity theft?

• address

• date of birth

• mother’s maiden name

• social security number

Which describes the difference between a personal loan and a credit card?

• Credit cards offer lump sums of money, while personal loans set a maximum amount a person can borrow.

• Credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases.

• Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow.

• Personal loans are secured for small purchases, while credit cards are unsecured loans for large amounts.

Which information can be found on a person’s credit report? Check all that apply.

• an unpaid utility bill that has been given to a collection agency

• the person’s credit rating

• the person’s yearly income

• the person’s social security number

• an inquiry from a bank that requested the person’s credit report