Quiz about Financial Literacy Review

Question 1

Mariana and Mat decide to file their taxes jointly. Their joint income for the year is $300,000. By law, they are required to pay a 30% annual income tax rate.

How much does the couple have to pay in income taxes for the year?

Accepted Answer

$90,000

Answer

$100,000

Answer

$10,000

Answer

$900,000

Question 2

Ariana invested $1900 in an account that pays 2.5 compound interest with interest compounded annually at the end of each year.

Which expression can be used to determine the total value of Ariana's investment after 8 years?

Accepted Answer

$$1900\left(1+.025\right)^8$$

Answer

$$1900\left(.025\right)\left(8\right)$$

Answer

$$1900\left(1\ +\ 2.5\right)^8$$

Answer

$$1900\left(1+8\right)^{2.5}$$

Question 3

Alexxia's total assets add up to $503,204. Her total liabilities add up to $22,405. What is Alexxia's net worth?

Accepted Answer

$480,799

Answer

$525,609

Answer

$22,459

Answer

$11,274

Question 4

Allan bought a pair of pants for $60. In his state, there is a 7% sales tax. How much did Allan pay in sales tax?

Accepted Answer

$4.20

Answer

$64.20

Answer

$42.00

Answer

$102.00

Question 5

$$2050\left(1.05\right)^6$$

Which of the following statements is NOT true about the expression above?

Accepted Answer

This is a simple interest investment.

Answer

This is a compound interest investment.

Answer

The initial investment is $2050.

Answer

There is a 5% interest rate in this investment.

Question 6

Aaron's monthly budget is pictured. He earns $800 a month.

What percent proportion can be used to find the percentage of his monthly budget is used for clothes, food, and other?

Accepted Answer

$$\frac{200}{800}=\frac{\%}{100}$$

Answer

$$\frac{100}{800}=\frac{\%}{50}$$

Answer

$$\frac{150}{800}=\frac{\%}{100}$$

Answer

$$\frac{800}{200}=\frac{\%}{100}$$

Question 7

Aaron's monthly budget is pictured. He earns $800 a month.

What percentage of his monthly budget is used for clothes, food, and other?

Accepted Answer

25%

Answer

12.5%

Answer

40%

Answer

37.5%

Question 8

Mr. Richardson makes $60,000 annually. If he has an income tax rate of 10%, how much will he be paying in income tax?

Accepted Answer

$6,000

Answer

$600

Answer

$60

Answer

$6

Question 9

Andrew has a loan of $42,260. This loan has a simple interest rate of 4% per year. What is the amount of interest Andrew will be charged at the end of one year?

Accepted Answer

$1,690.40

Answer

$16,904.00

Answer

$10,565.00

Answer

$21,130.20

Question 10

Angel and Axel each invest $400 in separate accounts.

- Angel invests his money into a simple interest account with an annual interest rate of 3%.

- Axel invests his money in an account that earns 3% interest compounded at the end of the year.

Which of the following statements is true?

Accepted Answer

Both accounts will earn the same amount of interest and will have the same balance at the end of 1 year.

Answer

Anel will earn $12 more in interest than Axel at the end of 1 year.

Answer

Axel will earn $12 more in interest than Angel at the end of 1 year.

Answer

There is not enough information to answer this question.

Question 11

In Amelia's monthly budget, each category is assigned a certain percentage of their monthly income. Amelia's monthly income is $2,250.

Which statement is NOT supported by the information in the table?

Accepted Answer

Amelia budgets $490 of their monthly income for telephone, utilities, and emergencies.

Answer

Amelia puts $67.50 into their life insurance.

Answer

Less than $900 of Amelia's monthly income is for their house payment and life insurance.

Answer

More than $500 of Amelia's monthly income is for car payments and car insurance.

Question 12

Simplify $$\frac{48}{72}$$

Accepted Answer

$$\frac{2}{3}$$

Answer

$$\frac{3}{4}$$

Answer

$$\frac{1}{2}$$

Answer

$$\frac{1}{6}$$

Question 13

Simplify $$\frac{60}{108}$$

Accepted Answer

$$\frac{5}{9}$$

Answer

$$\frac{1}{2}$$

Answer

$$\frac{6}{7}$$

Answer

$$\frac{2}{3}$$

Question 14

7x - 5 = 30

Accepted Answer

x = 5

Answer

x = 7.4

Answer

x = 3.57

Answer

x = 7

Question 15

3x - 2 = 34

Accepted Answer

x = 12

Answer

x = 10.67

Answer

x = 18.5

Answer

x = 15.5

Question 16

8x - 10 = 30

Accepted Answer

x = 5.0

Answer

x = 2.5

Answer

x = 3.8

Answer

x = 2.2

Question 17

What is 25% of 50?

Accepted Answer

12.5

Answer

2

Answer

1,250

Answer

25

Question 18

What is 1% of 7?

Accepted Answer

.07

Answer

.7

Answer

70

Answer

700

Question 19

What is 40% of 204?

Accepted Answer

81.6

Answer

0.96

Answer

90.34

Answer

1.34

Question 20

What is 12% of 500?

Accepted Answer

60

Answer

600

Answer

41.67

Answer

416.7

Question 21

What is 10% of 40,000?

Accepted Answer

4,000

Answer

400,000

Answer

400

Answer

4

Question 22

If a simple interest account and compound interest account have the same principal and interest rate, the amount of money in the account will be the same after ___ year(s).

Accepted Answer

1

Answer

10

Answer

every

Answer

no

Question 23

Adela opens a savings account with a starting balance of $20,000. She will not make any additional deposits or withdrawals.

How much interest will Adela make after 3 years if she chooses a simple interest plan with a 5% interest rate?

Accepted Answer

$3,000

Answer

$23,000

Answer

$30,000

Answer

$6,000

Question 24

Adela opens a savings account with a starting balance of $20,000. She will not make any additional deposits or withdrawals.

How much money will Adela have in her account after 3 years if she chooses a simple interest plan with a 5% interest rate?

Accepted Answer

$23,000

Answer

$3,000

Answer

$30,000

Answer

$6,000

Question 25

When can net worth be negative?

Accepted Answer

When your liabilities are greater than assets.

Answer

When your assets are greater than liabilities.

Answer

When your liabilities are equal to assets.

Answer

Never.

Question 26

What kind of account will give you more money after 3 years?

Accepted Answer

An account that is compounded annually

Answer

A simple interest account

Answer

All accounts are equal after 3 years

Answer

Not enough information

Question 27

Are interest formulas on the STAAR reference sheet?

Accepted Answer

Yes, simple and compound.

Answer

No, neither.

Answer

Only simple.

Answer

Only compound.

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