Life Lessons

Question 1

Egypt

Answer 1

cooking oil, foreigners, slaves

Question 2

Rome

Answer 2

sales, inheritance, imports, exports

Question 3

Russia

Answer 3

Beehives, beards, souls

Question 4

England and Missouri

Answer 4

Bachelors

Question 5

Direct Tax

Answer 5

everyone must pay. personal income, corporate income, capital gains, estate, property

Question 6

Indirect Taxes

Answer 6

consumption taxes. sales, excise, value added, custom, stamp. entertainment

Question 7

Direct taxes unconstitutional

Answer 7

Article 1 section 8

Question 8

Direct Tax legal

Answer 8

1913, 16th amendment

Question 9

Texas Taxes

Answer 9

Federal Income, sales and excise tax, property tax. 32nd in taxx burden

Question 10

1 and #50

Answer 10

New York, - 12.75 % and Alaska

Question 11

Federal Tax Bracket

Answer 11

10% ,< $9950
12% < $9951 - $40525
22% < $40526 - $86375
24% $86376 - $164925
32% $164926 - $209425
35% $209426 - $523600
37% $>$523600

Question 12

Tax Avoidance strats

Answer 12

Invest in municipal bonds
Invest in long term capital gains
Start a business
Max out retirement accounts
Use a health savings account
Claim all possible tax credits

Question 13

Credit

Answer 13

Borrowing money for items that you can’t afford to pay for in total

Question 14

Interest

Answer 14

The cost of borrowing money

Question 15

Simple Interest

Answer 15

The amount of interest due on the loan

Question 16

Accrued Interest

Answer 16

Interest that accumulates until its paid off.

Question 17

Compound

Answer 17

Interest on interest

Question 18

1800s History of credit

Answer 18

MORTGAGE LENDING WAS RISKY, SO MOST LOANS WERE ISSUED THROUGH INDIVIDUALS. BUILDING AND LOAN COMPANIES STARTED TO LOAN MORTGAGES THROUGH 15-YEAR NOTES.

Question 19

1900 - 1960

Answer 19

ENRY FORD DIDN’T LIKE DEBT, SO HE WOULD ALLOW PEOPLE TO PUT CARS ON LAYAWAY. THEY COST ABOUT $850 AT THE TIME
($20,000 TODAY). GM LOANED PEOPLE MONEY TO BUY CARS

Question 20

1950

Answer 20

THE FIRST CREDIT CARD WAS THE DINERS CLUB CARD IN 1950. IT WAS USED FOR TRAVEL AND ENTERTAINMENT. THE BALANCE HAD TO BE PAID EVERY MONTH.

Question 21

Eventually..

Answer 21

BANKS STARTED TO USE REVOLVING CREDIT, WHICH
MEANS THAT THE WHOLE BALANCE DIDN’T HAVE TO
BE PAID EACH MONTH. THIS ALLOWED THEM TO
COLLECT MORE INTEREST

Question 22

1958

Answer 22

BANKAMERICARD (VISA) ISSUED CARDS FOR
GENERAL CREDIT IN 1958

Question 23

Establish credit

Answer 23

YOU NEED TO APPLY FOR THE CARD WITH THE LOWEST AVAILABLE
INTEREST RATE, AND MAKE SMALL PURCHASES THAT YOU CAN AFFORD TO PAY AT THE END OF THE MONTH. YOU WANT TO AVOID PAYING FOR HIGHLY CONSUMABLE GOODS ON CREDIT. ONCE YOU GET THE HANG OF IT, YOU CAN PURCHASE SOMETHING THAT
MIGHT TAKE A FEW MONTHS TO PAY OFF. MONITOR YOUR CREDIT USING A CREDIT MONITORING APP.

Question 24

What to look out for

Answer 24

Student credit cards with 30% interest, Title loans, The bigger that bank the better, small car lots

Question 25

How to use credit

Answer 25

FOR EXAMPLE, YOU MIGHT BUY FURNITURE AT 0% FOR 24 MONTHS.
THAT MEANS YOU HAVE 2 YEARS TO PAY OFF THE FULL AMOUNT OF
THE FURNITURE. AS LONG AS YOU DO THAT, YOU NEVER PAY INTEREST
ON IT. IF YOU DON’T, YOU WILL OWE A HUGE AMOUNT OF INTEREST,
SO TREAD LIGHTLY.