Test 5 Unit 7

Question 1

the interest charged for the use of the installment plan

Answer 1

finance charge

Question 2

a plan used in spending money

Answer 2

budget

Question 3

the number used to identify a check on the deposit slip

Answer 3

transit number

Question 4

an insurance payment

Answer 4

premium

Question 5

a person who makes insurance calculations and predictions

Answer 5

actuary

Question 6

an order for a bank to pay money

Answer 6

check

Question 7

a required payment for the support of the government

Answer 7

tax

Question 8

the amount of money in a bank account

Answer 8

balance

Question 9

form used to put money in a bank account

Answer 9

deposit slip

Question 10

check cashed by the bank

Answer 10

canceled check

Question 11

buying on time

Answer 11

installment plan

Question 12

a person who benefits from an insurance policy

Answer 12

beneficiary

Question 13

Find the simple interest: p = $1,000; r = 10%; t = 1 yr.

Answer 13

1000 x .1 x 1=

$100

Question 14

Find the simple interest: p = $1,500; r = 12%; t = 2 yr.

Answer 14

1500 x .12 x 2 =

$360

Question 15

Find the simple interest: p = $800; r = 15%; t = 6 mo.

Answer 15

800 x .15 x .5 =

$60

Question 16

Find the simple interest: p = $3,600; r = 11%; t = 30 da.

Answer 16

3600 x .11 x .083 (or 1/12) =

$33

Question 17

Budget based on a monthly salary of $2,800:

tithe and offerings - 11%

Answer 17

2800 x .11 =

$308

Question 18

Budget based on a monthly salary of $2,800:

mortgage - 28%

Answer 18

2800 x .28 =

$784

Question 19

Budget based on a monthly salary of $2,800:

utilities - 7%

Answer 19

2800 x .07 =

$196

Question 20

Budget based on a monthly salary of $2,800:

food - 12%

Answer 20

2800 x .12 =

$336

Question 21

Budget based on a monthly salary of $2,800:

medical - 9%

Answer 21

2800 x .09 =

$252

Question 22

Find the total deposit if $567.39 is deposited in checks, $95 in currency, and $.89 in coins.

Answer 22

567.39 + 95 + .89 =

$663.28

Question 23

Find the new balance if $875 is deposited and $316 is withdrawn from a balance of $2,056.

Answer 23

2056 + 875 - 316 =

$2,615

Question 24

A checkbook register began the page with a balance of $600.84. A check was written for $89.50. A deposit was made for $55. Bank charges of $25 were recorded. A check was written for $23, and a check was written for $75. Find the balance after these transactions have been accounted for.

Answer 24

600.84 - 89.5 + 55 - 25 - 23 - 75 =

$443.34

Question 25

Jonathan Sedridge budgeted $40 of his $250 for church activities. What percent of his money did he budget for church activities?

Answer 25

40 divided by 250 = .16

16%

Question 26

Mrs. Patrick bought a vacuum cleaner with a list price of $349. She paid $50 down and the rest in 12 monthly payments of $32 each month. find the amount of interest she had to pay.

Answer 26

12 x 32 = 384. 384 + 50 = 434. 434 - 349 =

$85 interest

Question 27

Find the annual premium for $75,000 in straight life insurance at $18.50 per thousand dollar unit.

Answer 27

18.5 x 75 = $1,387.50

Question 28

Raymond Blount pays $185 each month for health insurance. Fine the amount he pays in one year.

Answer 28

185 x 12 = $2,220

Question 29

Dr. Wilson insured his home at the rate of $.67 per $100 per year. The insurance company valued his home at $120,000. find his cost for one year of homeowner’s insurance.

Answer 29

120,000 divided by 100 = 1200. 1200 x .67 =

$804

Question 30

Peter Pepper pays $425 for liability insurance, $216 for collision insurance, and $78 for comprehensive insurance. Find the total cost for his car insurance.

Answer 30

425 + 216 + 78 =

$719

Question 31

Find the sales tax on a purchase of $625 at the sales tax rate of 8%.

Answer 31

625 x .08 =

$50

Question 32

Find the amount of income tax on a taxable income of $35,000 at a tax rate of 18%.

Answer 32

35,000 x .18 =

$6,300