Devin’s bank charges $1.75 for nonbank ATM
withdrawals and $0.30 for each debit card trans-
action. Last month, Devin paid $8.25 in ATM
and debit card fees. He made 3 nonbank ATM
withdrawals. How many times did Devin use his
debit card last month?
A 2
B 5
C 7
D 10
Let's start by figuring out how much Devin spent on nonbank ATM withdrawals. Since each withdrawal costs $1.75 and he made 3 withdrawals, he spent 3 x $1.75 = $5.25 on nonbank ATM fees.
We know that he paid a total of $8.25 in fees, and we just figured out that $5.25 of that was from nonbank ATM fees. This means that the rest, $8.25 - $5.25 = $3, was from debit card transactions.
We also know that each debit card transaction costs $0.30. To figure out how many times Devin used his debit card, we can divide the total debit card fees by the cost per transaction: $3 ÷ $0.30 = 10.
Therefore, Devin used his debit card 10 times last month. The answer is D) 10.
Which statement about a credit report is true?
A My credit report cannot affect my future ability
to obtain a loan.
B A credit report is always correct and doesn’t
contain any errors.
C Negative actions on a credit report generally
remain for 7-10 years.
D College grades are used in credit reports.
C Negative actions on a credit report generally remain for 7-10 years.
Which method of paying for college needs to be
paid back?
A Grants
B Loans
C Scholarships
D Work-study programs
B Loans.
Which statement best describes purchases made
with a credit card?
A Purchases made with this card are withdrawn
directly from a bank account.
B Purchases made with this card require a PIN
number.
C If you don’t record your purchases, you may
have to pay a overdraft fee.
D Purchases made with this card are subject to
interest.
D Purchases made with this card are subject to interest.
Which is an advantage of using a credit card over
a debt card?
A You must have enough money in your account
to cover your purchases.
B You don’t have to carry cash.
C Used responsibly, it can help build a positive
credit history.
D You pay interest on the unpaid balance.
C Used responsibly, it can help build a positive credit history.
The choices I make today affect my future success.
Which choice would affect my ability negatively to
get a loan?
A Continuing my education after graduating
from high school.
B Getting a credit card that I pay off each month.
C Having a high debt ratio.
D Saving some of my earnings each month.
C Having a high debt ratio.
Which is a feature of both writing a check and
using a credit card?
A Make payments online
B Signature required
C Funds are transferred immediately
D Late fees
D Late fees.
Which job is NOT a typical work-study job?
A working in your own business
B working at campus library or bookstore
C off-campus job related to your course study
D serving in the dining hall
A Working in your own business.
Which is an advantage of using a debit card?
A Maintaining a minimum balance
B Delaying payment on items
C Paying monthly maintenance fees
D Faster than writing a check
D Faster than writing a check.
To build a credit history, a person could:
A Establish a steady employment record
B File his or her federal income taxes on time
C Use an ATM several times a month
D Request to view her or his credit file
A Establish a steady employment record.
A credit report maintains negative financial
information for how many years?
A 2 years for credit inquiries
B 7 years for late payments
C up to 10 years for bankruptcy
D All of the above
D All of the above.
Patty has a checking account at a local bank.
· the monthly checking fee is $10
· $0.30 for each check she writes
· Nonbank ATM withdrawals cost $2.50
· her beginning balance was $2,740.50
· she deposited $1,325.00
· withdrew $475.00 in cash from a nonbank ATM
· she wrote a check for $125.00
· transferred $500.00 to her savings account
What is her checking account balance at the end of the month?
A $2,422.30
B $2,952.70
C $3,401.20
D $3,520.50
Starting Balance: $2,740.50
Deposit: +$1,325.00
Nonbank ATM Withdrawal: -$475.00
Check Written: -$125.00
Savings Account Transfer: -$500.00
Monthly Checking Fee: -$10.00
Check Fees: -$0.30
Ending Balance: $3,954.20 - $10.30 = $3,943.90
Therefore, her checking account balance at the end of the month is $3,943.90. Answer: D
If the surgeon and the pharmacist each worked 30 years, how much more money
does the surgeon make in lifetime income?
A $1,154,620
B $924,720
C $3,467,700
D $115,590
Surgeon:
Annual Income = $360,000
30-year Lifetime Income = $360,000 x 30 = $10,800,000
Pharmacist:
Annual Income = $120,000
30-year Lifetime Income = $120,000 x 30 = $3,600,000
Difference in Lifetime Earnings (Surgeon - Pharmacist) = $10,800,000 - $3,600,000 = $7,200,000
Therefore, the surgeon makes $7,200,000 more in lifetime income than the pharmacist. Answer: C