Question

help consumer math

Answer 1

2. Voluntary deductions include ____. (1 point)
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Remember that voluntary means that you have a choice.

federal tax withholdings
state tax withholdings
health insurance premiums

3. FICA is a(n) _____. (1 point)
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FICA is made up of the Social Security and Medicare Deductions.

involuntary deduction based on a percentage of gross pay
voluntary deduction based on a percentage of net income
voluntary deduction based on a percentage of gross pay

4. An example of a fixed expense is _____. (1 point)
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clothing (not for work)
gas for a trip to the beach
mortgage

5. Deductions from your pay such as FICA, federal withholding, and state withholding are _____. (1 point)
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voluntary and discretionary
involuntary and fixed
involuntary and discretionary

6. Realized income is _____. (1 point)
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the amount of income you anticipate having
additional income through investments
the amount of income on hand

7. When you spend more than you make, you have a _____. (1 point)
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surplus
deficit
gain

8. You work 40 hours/week for 48 weeks and are given the option to be paid hourly or to go on salary. In which situation will you earn the most? (1 point)
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$18.50/hour
$18.00/hour and a $2,000 bonus at the end of the year
$33,000/year with a 10% bonus

9. You receive your pay stub and your gross pay is $1,300.00 and your net income is $836.00. How much FICA is withheld at 7.65%? (1 point)
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$91.80
$99.45
$464.00

10. What is the total of your fixed expenses?
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$1,301.87
$1,401.96
$1,203.12

11. Using the table from question #10, what is the total of your discretionary expenses? (1 point)
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$0.00
$198.84
$45.88

12. Suppose that you work at the Peawingspan Blue store for 40 hours over five days at a rate of $9.75/hour. You then quit your job. Deductions are FICA (7.65%), federal withholding (12%), and state withholding (8%). Your expenses are transportation at $4.25/day, lunch at $3.85/day, and black slacks required for work at $29.95. How much is your discretionary income for the week? (1 point)
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Find out your Realized Income (Gross minus the tax amounts) and then subtract out the Fixed Expenses.

$182.77
$211.72
$244.12

13. You purchase a computer for $975.00 plus 5% sales tax. You decide to finance it through the store's 0% program for 12 months. The terms state you pay nothing until the 12 months are over. When you receive the bill, you forget to pay it and are assessed a late fee of $39.00 plus the interest accrued to that point at 14.25% APR. How much interest will you be charged? (1 point)
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Add the sales tax to the original price and then use the formula I = Prt to assess the amount of interest. Do not include the late fee.

$130.92
$145.88
$184.88

14. Your gross pay is $1,878.96, net income is $1,096.34, and fixed expenses are $1,338.54. What is your discretionary income? (1 point)
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Remember that your fixed

You have a deficit of $242.20.
You have a deficit of $142.20.
$540.42

15. You invest $2,000.00 in one account and $4,000.00 in another account. Both accounts have the same interest rate over the same amount of time. How will the interest earned compare? (1 point)
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The $4,000.00 account will earn 4 times the amount of interest.
The $4,000.00 account will earn 2 times the amount of interest.
The $4,000.00 account will earn half the amount of interest.

16. You invest $4,000.00 for seven months at a 4.25% APR. How much interest will you earn? (1 point)
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Remember to use the formula I = Prt, where t is time in years.

$85.00
$99.17
$170.00

17. If you have 12% withheld for federal taxes, 7% for state taxes, and FICA is 7.65%, how much are your involuntary withholdings in all if your gross pay was $1,475.00 and your net income was $725.00? (1 point)
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Remember, involuntary withholdings are based on your gross pay.

$366.44
$393.09
$193.21

18. Your original purchase price was $950.00 plus 5% sales tax. You enter into an agreement where the interest (12.5% APR) is waived for the first 12 months provided you make the required monthly payments; otherwise the interest is accrued from the date of purchase on the original amount (including sales tax). You missed the second payment due date. The late fee is $35.00. How much is the interest? (1 point)
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After you find the total price (original with tax), use the I = Prt formula to determine how much interest has accrued in 2 months.

$20.78
$10.39
$14.73