Unit 17 Test Review

Organize these options into consistent and inconsistent income

Groups:

(a) Consistent Income

,

(b) Inconsistent income

• Paid hourly and hours change each week

• Salaried employee, paid the same each week

• Freelancer with varying project income

• Paid based on commission

• Regular royalties from published books

• Retirement pension received every month

You need new shoes for work which costs $95. You earn $400, after taxes, each week and you have other expenses totaling $380 each week. If you set aside the difference between your income and expenses each week, how many pay periods will it take for you to save enough money to buy the shoes?

• 2 weeks

• 4 weeks

• 3 weeks

• 5 weeks

Suppose you are paid bi-weekly. Your gross income for each paycheck in $1,500 and your deductions for each paycheck total $450.

What is your net pay for 4 weeks.

• $2,600

• $1,050

• $2,250

• $2,100

Using the same scenario as the previous question, your net income every 4 weeks is $2,100. Your expenses are shown in the picture. What is your savings every 4 weeks?

• $7

• there is no savings

• $450

• $1,050

Organize these options into the right categories

Groups:

(a) Discretionary Expenses

,

(b) Essential Expenses

• video game

• spa day

• new clothes

• travel

• rent

• concert tickets

• student loan payment

• groceries

• car insurance

• health insurance

• cell phone bill

• restaurant dining

• utilities

• internet bill

• fitness classes

• movies

Suppose you are a salaried employee, paid semi-monthly. You currently receive $4,300 gross income each pay period. The 20-50-30 budget model has been working well for you so far, so you plan to continue using it. If you would like to build up a 6-month emergency fund over a 13-month period of time, how much do you need to save each month to accomplish your goal?

• $1,389.23

• $694.62

• $347.31

• $28.94

You are considering a new job. You know that your essential expenses are $2,591/mo. Based on the 20-60-20 budget model, what is the minimum gross amount you need to make each pay period to cover your essential expenses?

• $74,028.51/52 wk = $1,423.63

• $51,819.96/0.70 = $74,028.51

• $2,591/0.6 = $4318.33/month

• $4318.33/month * 12 months = $51,819.96

If you are using the 20-60-20 budget model and you know your essential expenses are $2,591/mo, how much should you budget for lifestyle costs (discretionary) each pay if you are paid weekly?

• $854.18

• $284.73

• $996.54

• $199.31

=(SUM(​ (a)   ) ​ (b)   + SUM(​ (c)   ))​ (d)  

• B2:B6
• * 12
• A2:A4
• /12

Suppose you live in a city and have access to the city bus, the subway, a ridesharing service, and taxis. You are trying to develop a work schedule that would allow you to use one of these transportation options. If all of the options could get you to work at the time you need and return you home at an appropriate time, which one would be the most cost-efficient?

*Hint: find the cost per day for each method

• ridesharing service

• subway

• bus

• taxi