Financial Literacy Review

Mariana and Mat decide to file their taxes jointly. Their joint income for the year is $300,000. By law, they are required to pay a 30% annual income tax rate.

How much does the couple have to pay in income taxes for the year?

• $90,000

• $100,000

• $10,000

• $900,000

Ariana invested $1900 in an account that pays 2.5 compound interest with interest compounded annually at the end of each year.

Which expression can be used to determine the total value of Ariana's investment after 8 years?

Alexxia's total assets add up to $503,204. Her total liabilities add up to $22,405. What is Alexxia's net worth?

• $525,609

• $480,799

• $22,459

• $11,274

Allan bought a pair of pants for $60. In his state, there is a 7% sales tax. How much did Allan pay in sales tax?

• $4.20

• $64.20

• $42.00

• $102.00

• This is a simple interest investment.

• This is a compound interest investment.

• The initial investment is $2050.

• There is a 5% interest rate in this investment.

Aaron's monthly budget is pictured. He earns $800 a month.

What percent proportion can be used to find the percentage of his monthly budget is used for clothes, food, and other?

Aaron's monthly budget is pictured. He earns $800 a month.

What percentage of his monthly budget is used for clothes, food, and other?

•  25%

• 12.5% 

•  40%

•  37.5%

Mr. Richardson makes $60,000 annually. If he has an income tax rate of 10%, how much will he be paying in income tax?

• $6,000

• $600

• $60

• $6

Andrew has a loan of $42,260. This loan has a simple interest rate of 4% per year. What is the amount of interest Andrew will be charged at the end of one year?

• $1,690.40

• $16,904.00

• $10,565.00

• $21,130.20

Angel and Axel each invest $400 in separate accounts.

- Angel invests his money into a simple interest account with an annual interest rate of 3%.

- Axel invests his money in an account that earns 3% interest compounded at the end of the year.

Which of the following statements is true?

• Anel will earn $12 more in interest than Axel at the end of 1 year.

• Axel will earn $12 more in interest than Angel at the end of 1 year.

• There is not enough information to answer this question.

• Both accounts will earn the same amount of interest and will have the same balance at the end of 1 year.