Budgeting and Being a Smart Consumer(CFA1) Answers

How much more did Briana save by purchasing a backpack that cost $45 with a sales promotion of 20% off instead of a backpack that cost $42 with a sales promotion of 10% off?

Georgia’s gross pay was $35,600 this year. She is to pay a federal income tax of 16%. How much should Georgia pay in federal income tax this year? Round to the nearest dollar.

Kala’s family is shopping for a large screen TV. The TV they decided on has a retail price of $1,000 at four stores. The state sales tax is 5%. Each store is offering a different sales promotion, as listed in the table. StorePromotional OfferA$80 rebateB10% discount on priceCStore pays all sales taxD$40 rebate with store paying half of sales taxWhich store has the best deal?

Shondra’s family’s monthly net income is $6,654. The family’s budget is shown in the circle graph below. The family decides to increase the savings budget by 3 percent by decreasing one of the variable expenses by 3 percent.If the family decreases the clothing budget by 3 percent, what amount will it have to spend on clothing? Round to the nearest dollar.

Walden’s family is shopping for a reclining chair. The chair the family decided on has a retail price of $800 plus 5% sales tax at four stores. Each store is offering a different promotion. StorePromotional OfferA$75 instant rebateB10% off saleC5% off sale plus store pays sales taxDa “no tax” sale—the store pays the taxWhich store has the best deal?

Hillary’s family is thinking of relocating to a different city to save money. They set up a budget comparing the cost of living in four cities. OaklandPhoenixSanta FeSan DiegoItemCostCostCostCostHousing$565$465$505$1200Food$545$495$475$655Health Care$245$215$200$495Taxes$450$415$385$625Other Necessities$350$305$295$495Monthly Total$2155$1895$1860$3470Based on cost of living alone, which city should they choose to live in?

Chin needs more money in his net pay each month, so he plans to reduce his federal income tax deduction from 12% to 11%. His monthly gross pay is $3,500, and his deductions before the change are listed in the table.DeductionDollar AmountFederal Income Tax$420State Income Tax$95Social Security$89Medicare$40 What will be his new monthly net pay? Round your answer to the nearest dollar.

Quintina decided to increase the deduction percentage of her federal income tax rate from 14% to 16%. Quintina’s gross pay per month is $2,100. Her deductions before the change are listed in the table. DeductionDollar AmountFederal Income Tax$294State Income Tax$89Social Security $85Medicare$35 What is her new monthly net pay? Round your answer to the nearest dollar.

The Chambers family has a net monthly income of $6,500.If the family decides to reduce its clothing budget by $200 a month, how much will the new clothing budget be? Round to the nearest dollar.

Last year, Nevan’s gross pay was $45,150. The federal income tax percent that was withheld from his gross pay was 16%. The amount of money that Nevan actually owes the government after deductions is $6,150. Which of the following is true?

Shona is buying a rug for her room. Store A has the rug for $45 with a 10% discount. Store B has the same rug for $46 and is offering a $10 off coupon. The sales tax is 6% on either purchase. If Shona only has $40 to spend, which store will she purchase the rug from, and how much will she have left over?

Yoko is trying to save money for a new bicycle. She sets up a budget as shown below. Yoko’s Monthly BudgetDescriptionIncome Expenses Earnings (babysitting)$125 Earnings (bagging groceries)$55 Entertainment $25Snacks $10Transportation $25Clothing $35Amount available for savings: $How much money will Yoko have left over for her savings each month?

The Sullivan family made a bar chart to compare how much they spend on different costs each month.. Sullivan Family Monthly BudgetIf the family’s net monthly income is $7,800, what percent of the income is spent on food, clothing, and housing?