Answers26-27 Ignite Technical Math-Financial Math - MA2007Consumer Responsibilities

Topic Test Answers

44 verified answers7 views
1
Free Preview

A consumer charges a $46.92 purchase on a credit card. The card has a daily interest rate of 0.039%. If the consumer pays off the balance at the end of 30 days, how much in interest will be paid for the purchase?

A
$0.06
B
$0.18
C
$0.55
D
$5.49
2
Free Preview

June has a credit card balance of $4,350 that comes with a 19% APR. She would like to have the balance paid off in the next 8 months, but she is having trouble making the monthly payments required to do so. In order to lower her monthly payments, she decides to sell her porcelain doll collection for $2,000 to apply directly to her credit card balance. June still wants to pay off the balance in 8 months. By applying the doll money, how much has June lowered her minimum monthly payment?

A
$145.62
B
$268.14
C
$315.06
D
$583.20
3

A 7 character computer password is made up of 4 letters followed by 3 numbers. How many different passwords are possible?

A
333,135,504
B
358,800,000
C
456,976,000
D
78,364,164,096
4

Since they filed bankruptcy in the past, a couple ends up paying a 12% fixed rate for a 30 year mortgage. With a better credit rating, they could have gotten the loan at a rate of 8%. If their loan amount is $140,000, how much more per month will the couple be paying for their mortgage as a result of their bankruptcy?

A
$137,532.67
B
$412.79
C
$1,440.06
D
$260.37
5

Which of the following is not a true statement about filing bankruptcy?

A
Bankruptcy erases all of your debt.
B
It is possible to rebuild your credit after filing bankruptcy.
C
There are exemptions that allow you to keep essentials.
D
Bankruptcy stops aggressive action by creditors.
6

Tyrell has a bankruptcy on his credit report and therefore pays higher interest rates on his current loans. He calculates that the extra money he pays in additional interest each year, if invested at the rate of 2.5% for one year, could earn him simple interest totaling $300. How much does Tyrell pay in additional interest each month?

A
$90
B
$100
C
$1,000
D
$12,000
7

Which of the following best describes a way of safeguarding personal information?

A
Allison removes one check to pay her electric bill and then locks her checkbook in the car when she goes in to pay it.
B
Byron gives his credit card number to a telephone solicitor, but only after getting the person’s name.
C
Jenika has the cashier run her debit card as a credit purchase, rather than debit, to avoid having to enter her PIN.
D
Lydell reads and signs the privacy policy at his doctor’s office that says they only share information with pharmaceutical companies.
8

A couple finds that they are experiencing debt problems and decide to find a credit counseling agency. What are three (3) things that the couple should find out about an agency before they allow the agency to represent them?

Answer:

Answers may vary but might include mention of the following questions: Are there large up-front fees? Is the agency accredited? How much of each payment goes to the agency?

9

Malaya creates a password as follows:letter, number, letter, special character, numberAssuming that there are 12 special characters, if you were trying to guess Malaya’s password, what is the most guesses that you would have to make?

A
702,000
B
811,200
C
205,476,480
D
254,803,968
10

List three (3) warning signs that a person's may be reaching a critical point in the amount of debt that he or she has accumulated.

Answer:

Answers may vary but may include mention of credit cards being at their limits, using cash advances on credit cards to pay bills, and/or making late payments.

11

In the wrong hands, which of the following pieces of personal information would present the greatest risk for identity theft?

A
address
B
date of birth
C
mother’s maiden name
D
social security number
12

A person who files bankruptcy ends up paying a 5% higher fixed interest rate on a 25-year home loan than a person who has not filed bankruptcy. The person that does not file bankruptcy pays a 7.5% interest rate. If the loan amount is $160,000, how much more does the person who filed bankruptcy pay in total interest on the home loan than the person who has not filed bankruptcy?

A
$168,654.22
B
$562.18
C
$157,073.04
D
$110,878.95
13

Michelle has four credit cards with the balances and interest rates listed below. She would like to consolidate all of her credit cards in a single credit card with an interest rate of 16% and pay off the balance in 36 months. If she did so, what would Michelle’s monthly credit card payment be?Credit CardBalanceAPR#1$4,380 17%#2$1,365 19%#3$2,480 23%#4$5,000 15%

A
$367.36
B
$464.95
C
$685.23
D
$826.56
14

Frank has four different credit cards, the balances and interest information of which are outlined in the table below. As Frank was developing a debt payment plan, Charles suggested that he pay off the credit cards beginning with the highest balance, working his way down. If Frank chooses to follow Charle’s advice, in what order should Frank plan on paying off his credit cards?Credit CardBalanceAPRA$2,380 19%B$4,500 15%C$1,580 17.50%D$900 21%

A
D, A, C, B
B
B, A, C, D
C
C, B, A, D
D
A, C, D, B
15

Byron filed for bankruptcy a few years ago, but is still paying higher deposits and interest rates. Byron has calculated that he paid an average of $79.15 per month in additional charges as a result of his bankruptcy. If Byron been able to save this money for the year and then put it into a savings account earning 2% simple interest, how much money could he have in savings after another year?

A
$949.80
B
$968.80
C
$1,139.76
D
$1,918.60
26

Analyze the following computer password in terms of how secure it might be. Describe the criteria you use in determining its strengths and weaknesses.born2ski4evr!

Answer:

The strengths of the password are that it consists of 13 characters and uses letters, numbers and a special character. The weakness of the password is that it contains whole words.

27

Describe the key things that set predatory lenders apart from other lenders.

Answer:

Predatory lenders typically have high loan processing and late fees, but the most defining thing about them is the extremely high annual percentage rates (APR) charged.

28

While out shopping for new clothes, Xaoting sees a sign for cozy socks advertised on sale for $3.50 per pair. The regular price of the socks is $5 per pair. Xaoting buys 3 pairs and notices that the socks do not ring up at the advertised sale price, so she has the cashier do a price check. If the sales tax is 8%, how much does Xaoting save by paying attention at the register?

A
$3.66
B
$4.50
C
$4.86
D
$5.70
29

Carl has a credit card with a balance of $5,260 and an APR of 21%. With the monthly payments he has been making, Carl would be able to pay off his credit card in 18 months. After receiving a promotional offer in the mail, Carl decides to transfer his balance to a new credit card with a 15% "introductory" APR for the first 12 months. After 12 months, the APR increases to 23%. How much will Carl save in finance charges (interest) if he pays off the credit card before the introductory APR expires?

A
$285.38
B
$480.30
C
$789.00
D
$917.42
30

Janessa wants to pay off her credit card balances within 12 months. She is trying to decide if she should use her $1,000 in savings to pay off part of the balances or if she should transfer the balances to a new card with a low introductory rate. The new credit card has an introductory rate of 6.5% but charges a balance transfer fee of $50 for each balance transfer. Janessa decides to pay of Credit Card B and $420 of Credit Card A, then transfer the remaining balance of Credit Card A to the new card. Which of the following options shows the amount of Janessa's new monthly payment?Credit Card A: $957 Credit Card B: $580

A
$54.97
B
$50.66
C
$18.12
D
$46.34

Did you find these answers helpful?

More from this Course

Quiz
34 verified answers

Topic Test

Instruction
17 verified answers

Instruction

Quiz
10 verified answers

Consumer Responsibilities