Topic Test Answers

Brenda has an associate’s degree earning the median salary. She wants to quit working and go to college to get just a basic bachelor’s degree. If she completes her degree in 2 years and it costs $15,000, how long will it take her to recover her investment assuming that she earns the median salary?

Drake wants to save $750 so that he can take a class on computer analysis for cars. The class is being held on various dates over the next several months. Drake is planning to take the class 6 weeks from now, so he plans to save $125 each week. Unfortunately, Drake had to take out a little money from his savings in the 3rd week. After 4 weeks, Drake has $470. He knows that he must adjust his plan in order to meet his goal. Drake came up with the following options: Option A: Stay with saving the original amount each week but take the class a week later than originally planned. Option B: Increase the amount of money he saves each week by $15 from his original plan. Which of the following is a true statement?

Tamara earns $8 an hour at her job working 25 hours per week. If 22% of her paycheck goes to taxes, what is Tamara’s monthly cash inflow? (Assume this is her only source of income and that there are 4 pays per month.)

Julian is trying to decide on a future career. He has narrowed down his choices to orthodontist, sound engineering technician, police officer, or editor. The following table represents the total employment numbers for 2006 and projected employment numbers for 2016. Orthodontist Sound engineer technician Police officer Editor 2006 9,206 16,125 648,982 122,273 2016 10,214 17,864 719,041 124,135 Which profession is projected to have the greatest percent of increase in the number of jobs from 2006 to 2016?

Planning for the possibility that the plumbing in your house needs repair is part of a plan for _____.

Four friends want to take a vacation together, so each one gets a part-time job. Each person has 8 weeks to save $720 for the vacation. Analyze the four individual plans below and decide which of the four people will reach his or her goal of saving $720 for vacation. Friend A: Works 13 hours per week at $6.95 per hour.Friend B: Works 15 hours per week at $5.85 per hour.Friend C: Works 18 hours per week at $5.25 per hour.Friend D: Works 11 hours per week at $7.80 per hour.

The table below is comparing level of education achieved to the rate of unemployment and the median weekly earnings in 2008. Based on the information provided, the unemployment rate decreases the most when moving between which two consecutive educational levels?

Construction Industry-All Employees (Millions), 2000-2009 Construction Industry - Average Hourly Earnings (Dollars), 2000-2009 Based on trends displayed in the graphs above, which answer choice represents a likely situation for 2010?

The following table shows the assets and liabilities of the Smith family in 2005 and 2009.20052009home valued at $200,000home valued at $180,000mortgage of $30,000home equity loan of $18,000car valued at $25,000car valued at $18,000car loan of $8,000boat valued at $20,000 personal loan of $5,000Based on the table, which of the following is true?

Aaron is a high school graduate working as a retail clerk. He earns a median salary for a high school graduate. Aaron is thinking about going to college to get an associate's degree. If he completes his degree in 2 years and college costs total $30,000, how long will it take Aaron to recover his investment, assuming that he earns the median salary and continues to work full time while he is attending school?

Mary took out a loan to buy a $30,000 boat but had $2,000 cash to put down.Which of the following is true?

The rare coin collection your grandmother gave you is part of your liabilities.

Frank and Lynn are co-workers getting paid the same salary. They both decide to quit their jobs and start going to school on the same day. Frank gets a degree after just 18 months and spends $6,500 dollars on his education. Lynn only spends $3,500, but it takes her 2 years to get her degree. Assuming that they each will make $6,000 more per year after graduating, which of the following is true?

There is a negative correlation between the number of years in college and earnings.

Shaniqua brings home $225 per week working 25 hours. She is able to save $25 of her earnings each week. Shaniqua wants to have $600 saved at the end of 15 weeks. She is allowed to work up to 30 hours per week if she wants. She can save all the money earned working extra hours. Which of the following statements is true?

Ted is a single guy who’s living the good life. The spreadsheet below shows Ted’s cash flow for a month. Based on his monthly cash flow, explain what part of Ted’s financial plan might be missing and why.