QUIZ: PERSONAL FINANCIAL LITERACY

Mr. Ronaldo earns $46,650 in annual gross income. He will pay 7% in income tax this year. What is the amount of income tax that Mr. Ronaldo will pay?

• $3,386.50

• $3,265.50

• $4,108.60

• $4,665.00

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7.13.A

Jacob would like to purchase a coat and a hat for a ski trip. The coat is $62.75 and the hat is $14.25. If the sales tax rate is 8%, then what will be the amount of tax on Jacob’s purchase?

• $6.16

• $6.88

• $7.02

• $7.44

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7.13.A

After taxes, Olive brings home $2,800 per month. She has decided that she would like to set aside 15% of her income for savings. How much will Olive save each month?

• $360

• $385

• $408

• $420

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7.13.B

Which of the following is a true statement regarding Patel’s monthly budget?

• More than 50% of Patel’s budget is spent on rent.

• Patel is saving more than 10% of her monthly income.

• Patel’s car payment and other spending account for more than 25% of her monthly income.

• Patel is spending more than 10% of her monthly income on her car payment.

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7.13.D

Which of the following best represents the percentage of Patel’s budget that is designated for other spending?

• 20%

• 12%

• 16%

• 30%

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7.13.D

Which equation can be used to determine y, the minimum amount of money the family must earn each year?

• y = 2,550 ⋅ 12

• y = 2,550 ⋅ 52

• y = 2,550 ÷ 12

• y = 2,550 ÷ 52

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7.13.D

Which of the following best represents a job in which the family can meet its basic needs?

• An hourly job earning $15 per hour for 40 hours per week for 4 weeks a month

• An hourly job earning $25 per hour for 25 hours per week for 4 weeks a month

• A monthly salary of $2,250

• An hourly job earning $22 per hour for 30 hours per week for 4 weeks a month

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7.13.D

Mrs. Washington earns a gross salary of $64,000. She paid 7% in income taxes in 2014. Which of the following best represents the amount of money Mrs. Washington paid in income tax in 2014?

• $4,480.00

• $4,320.00

• $4,890.25

• $5,288.00

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7.13.B

A new washing machine is purchased by the Hamilton family. It costs $324.50. How much will the washing machine cost after a 6% sales tax is applied?

• $343.97

• $340.73

• $519.20

• $488.56

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7.13.A

Jesse has started a part-time job in order to save money for college. She plans to earn $800 per month. Jesse and her mom decide to create a budget, as shown. Which of the statements does not represent the budget?

• Jesse will save 75% of her income towards college each month.

• Jesse will use 10% of her income towards her cell phone bill each month.

• Exactly 85% of her income will go towards college savings and entertainment.

• Exactly 15% of her income will go towards entertainment.

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7.13.B