Review #2 Financial Literacy midterm

Why do stores rarely advertise the full price of big purchases like smartpones?

• They are trying to keep their prices competitive

• They are trying to cheat you

• By showing you only the monthly payment, they make the product seem affordable

• Hiding the full price allows stores to change their pricing as the market fluctuates.

Tags

MA.912.FL.3.5

Alfonso purchased a drum set from the Carlton Music Center. The drum set regularly sold for $1,000, but was on sale for 45% off. He also had to pay 5% sales tax. He bought it on an installment plan and paid 20% of the total cost with tax as a down payment. His monthly payments were $49.80 per month for 12 months.

What is the discount?

• $350

• $450

• $250

• $150

Tags

MA.912.FL.1.1

Alfonso purchased a drum set from the Carlton Music Center. The drum set regularly sold for $1,000, but was on sale for 45% off. He also had to pay 5% sales tax. He bought it on an installment plan and paid 20% of the total cost with tax as a down payment. His monthly payments were $49.80 per month for 12 months.

What is the sale price?

• $850

• $650

• $750

• $550

Tags

MA.912.FL.1.1

Alfonso purchased a drum set from the Carlton Music Center. The drum set regularly sold for $1,000, but was on sale for 45% off. He also had to pay 5% sales tax. He bought it on an installment plan and paid 20% of the total cost with tax as a down payment. His monthly payments were $49.80 per month for 12 months.

What is the sales tax?

• $27.50

• $42.50

• $37.50

• $32.50

Tags

MA.912.FL.1.1

Alfonso purchased a drum set from the Carlton Music Center. The drum set regularly sold for $1,000, but was on sale for 45% off. He also had to pay 5% sales tax. He bought it on an installment plan and paid 20% of the total cost with tax as a down payment. His monthly payments were $49.80 per month for 12 months.

What is the total cost of the drum set?

• $577.50

• $892.50

• $682.50

• $787.50

Tags

MA.912.FL.1.1

Alfonso purchased a drum set from the Carlton Music Center. The drum set regularly sold for $1,000, but was on sale for 45% off. He also had to pay 5% sales tax. He bought it on an installment plan and paid 20% of the total cost with tax as a down payment. His monthly payments were $49.80 per month for 12 months.

What is the down payment?

• $136.50

• $178.50

• $115.50

• $157.50

Tags

MA.912.FL.3.6

Alfonso purchased a drum set from the Carlton Music Center. The drum set regularly sold for $1,000, but was on sale for 45% off. He also had to pay 5% sales tax. He bought it on an installment plan and paid 20% of the total cost with tax as a down payment. His monthly payments were $49.80 per month for 12 months.

What is the total of the monthly payments?

• $597.60

• $839.04

• $745.08

• $691.08

Tags

MA.912.FL.3.6

Alfonso purchased a drum set from the Carlton Music Center. The drum set regularly sold for $1,000, but was on sale for 45% off. He also had to pay 5% sales tax. He bought it on an installment plan and paid 20% of the total cost with tax as a down payment. His monthly payments were $49.80 per month for 12 months.

What is the total paid for the drum set on the installment plan?

• $713.10

• $902.58

• $827.58

• $1,017.54

Tags

MA.912.FL.3.6

Alfonso purchased a drum set from the Carlton Music Center. The drum set regularly sold for $1,000, but was on sale for 45% off. He also had to pay 5% sales tax. He bought it on an installment plan and paid 20% of the total cost with tax as a down payment. His monthly payments were $49.80 per month for 12 months.

What is the finance charge?

• $145.08

• $115.08

• $125.04

• $135.60

Tags

MA.912.FL.3.6

Dan's credit card was lost on a vacation. He immediately reported it was missing. The person who found it days later used it, and charged x dollars' worth of merchandise on the card, where x > $200. How much of the x dollars is Dan responsible for paying?

• $150

• $x

• $0

• $201

Tags

MA.912.FL.3.5