2.1 Savings Review (FADL)

What is the primary advantage of the 50/30/20 budgeting plan?

• It allows you to spend 50% of your income on luxuries

• It suggests that 30% of your income should go towards savings or debt repayment

• It proposes that 20% of your income should be allocated to necessities

• It advises that 20% of your income should be directed towards savings or debt repayment

Tags

CCSS.HSA.CED.A.3

John is planning to use the 50/30/20 rule to save $5000 for his dream car. His monthly income is $3000. How many months will it take him to reach his savings goal?

• 5 months

• 7 months

• 9 months

• 11 months

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

What is the recommended duration of expenses to be saved as an emergency fund according to financial experts?

• 2-4 months of expenses

• 3-6 months of expenses

• 6-8 months of expenses

• 1-3 years of expenses

What is the financial status of most Americans in terms of emergency funds and retirement savings?

• Most Americans have both an adequate emergency fund and enough saved for retirement

• Most Americans have an adequate emergency fund but lack sufficient retirement savings

• Most Americans lack an adequate emergency fund but have enough saved for retirement

• Most Americans neither have an adequate emergency fund nor enough saved for retirement

John's saving balance is represented by the line y = 50x + 10 graphed below. Peter's savings balance is represented by the line y = 40x + 80 graphed below. What does the intersection of the two lines represent?

• Peter is saving $10 more than John per week

• John put more into the account initially

• They both saved $400 per week in the 8th week

• They both have saved $360 total after 7 weeks

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CCSS.HSA.REI.C.6

CCSS.HSA.REI.D.10

CCSS.HSA.REI.D.11

Gregory starts a savings account with an initial balance of $500 and saves $60 each month. Savannah starts a savings account with an initial balance of $200 and saves $120 each month. How many months will it take for Gregory and Savannah to have the same balance? How much will they have at that point?

• After 4 months, they will both have $740.

• After 5 months, they will both have $800.

• After 6 months, they will both have $860.

• After 7 months, they will both have $920.

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.2

CCSS.HSA.REI.B.3

CCSS.HSA.REI.C.6

Maria is a junior in college saving up for a downpayment on a motorcycle.

- Assume Maria makes $15/hr after taxes.

- There are 30 weeks in a school year and 14 weeks of summer.

- She works 15 hours/week during the school year and 25 hours/week during the summer.

If she saves 25% of her income. How much will she have saved in a year?

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.A.1

CCSS.HSA.REI.B.3

Autumn plans to purchase a laptop for $800 in 5 months. How much does she need to save per week to meet her goal?

• $40

• $80

• $160

• $20

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

Reggie is planning to buy a new guitar for $600. If he saves $15 per week, how many months will it take him to afford the guitar?

• 5 months

• 3 months

• 7 months

• 10 months

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.A.1

CCSS.HSA.REI.B.3

When Liam was born, his parents deposited money into a savings account that earned 6% simple interest. After 20 years, the account had earned $18,000 in interest. What was the initial investment (principle)?

• $12,000

• $13,000

• $14,000

• $15,000

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.REI.B.3

CCSS.HSA.SSE.A.1