Financial Math 1

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Which of the following is most likely missing from your financial plan if you are not prepared for an emergency?

savings

What should be included in a financial plan to protect assets?

NOT! how much money you will have in savings

Planning for the possiblity that your home might get struck by lightning and catch on fire is part of a plan for _____.

protecting assets

Justin is married with one child. He works 40 hours each week at a rate of $16 per hour. His wife began working part time after their daughter was born, but still contributes about $350 to the cash inflow each month. Their monthly cash outflow is generally about $3,000. They have a balance of $2,000 in their savings account. Justin has retirement contributions taken out of his paycheck at work. They have renter's, car and life insurance coverage.
Based on this information, what part of their financial plan should Justin and his wife work on?

managing income

The Anderson family wants to look at their cash flow over a year. They decide to write out their cash flow for 4 months as given in the spreadsheet below. In which of the months did they have the greatest net cash flow?

April

Jim and Jackie are married with three children at home and a mortgage. Jim's net pay per year is $67,000 and Jackie does not have income. Their mortgage payment of $2,800 includes insurance on their home. They have additional monthly expenses of $2,700.

Jim contributes 15% of his earnings to a retirement fund and they have $5,000 in savings. There is a $500,000 life insurance policy on Jim and a $100,000 policy on Jackie.

As their financial advisor, what part of Jim and Jackie's financial plan would you encourage them to work on?

NOT! They should work on their plan for protecting their income.

NOT! They should work on their plan for managing their liquidity.

Glenda bought a new car with monthly payments of $357. Glenda manages to make her monthly car payments each month, but fails to perform the routine maintenance, like regular oil changes, because of the cost. To ensure that regular maintenance on her car can get done, which part of her financial plan should Glenda work on?

income

Kendra is working on her financial plan and lists all of her income and expenses in the spreadsheet below.

$295

Which of the following is true?

NOT! net cash flow - cash outflow = cash inflow

Which of the following spreadsheets shows the financial plan with the greatest net cash flow?

D

What is meant by the term financial planning?

It is creating a road map of everything you do with your money.

Your friend has prepared his monthly budget and asks you if he has overlooked anything in this planning.
Which of the following questions points out his most serious omission?

What if you need to replace the furnace?

Tyrone's hourly wage is $18 and his net pay is 72% of his earnings. Tyrone spends about $1,800 on his monthly expenses. If Tyrone works 40 hours per week and has no other sources of income, what is his total monthly cash inflow? (Hint: Assume that there are 4 pay periods per month.)

NOT! $1,080.00

Which of the following would not be listed under cash outflows in a financial plan?

interest earned

Based on the spreadsheet below, which of the following is a true statement?

The net cash flow is positive.

Brenda has an associate's degree earning the median salary. She wants to quit working and go to college to get her 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?

almost 8 years

In order to go to college, Hank goes from working full-time making $28,000 per year to working part-time at half the salary for two years. The total cost to get his degree will be $5,000. If Hank makes $33,000 per year after getting his degree, approximately how many years will it take him to recover his investment?

6.6

If there is a positive correlation between number of years of education and the amount of vacation time, which of the following careers would you expect to have the most vacation time?

pharmacist, docotorate degree

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?

Frank will recover his investment at an earlier date than Lynn.

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

F

If there is a positive correlation between salary and education, then based on the table shown, which of the following careers requires the most education?

accountant

Alistar has an annual income of $25,000. He decides to take classes on line and at night so that he can continue to work. After 3 years he gets his degree and immediately starts earning $32,000 per year. If it takes Alistar 6 years to recover his investment for his education, how much did it cost him?

$42,000

Neil decides to go to a technical college for 18 months to get a degree in computer networking. There are 6 school quarters in the program with a tuition of $530 each. Books for the entire program cost $1,800. How much will it cost Neil to get his degree?

$4,980

Mark currently works part-time with a salary of $8,000 per year. Mark plans to quit working and attend college for 4 years. If his college costs will total $64,000, how long will it take Mark to recover his investment assuming he has a salary of $32,000 upon graduating?

4 years

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?

about 2.5 years

There is a correlation between higher education and greater degrees of both income and job stability. What is one downside of continuing education that might cause someone to choose not to seek a higher level of education despite the benefits?

Higher education can be expensive, and most students who seek degrees must accept some burden of debt.

You give up a full-time salary of $45,000 a year to go to school for 2 years. The total cost of going to school is $30,000. If you want to be able to recover your investment in 5 years or less, what is the minimum salary you would need to earn upon earning your degree?

$69,000

Two people quit work and begin college at the same time. Their salary and education information is given in the table below.

Person A recovers their investment in a shorter amount of time.

Data seems to indicate that there is a negative correlation between years of education and unemployment rates. Which of the following describes what this means?

As education increases unemployment decreases.

Niah works as a retail sales clerk earning $18,000 per year. She plans to go to school for medical billing that has a median salary of $35,000. The total cost to get her degree will be $20,000. If Niah does not work for the 2 years that she is in school, about how long will it take her to recover her investment if she gets a medical billing job making the median salary when she graduates?

3.3 years

Which of the following should one consider when choosing a career?

all of the above

James has a job with a current salary of $42,000. He wants to earn a college degree that will take him 2 years to complete and it will cost $28,000 per year. He will go to school full time and will not be able to work. Upon graduation, James' new salary will be $56,000 per year. How many years will it take James to recover his investment?

10 years

If there is a positive correlation between salary and education, then based on the table shown, which of the following careers requires the least education?

surveyor

Based on the above table, what is the fastest growing occupation for people without a college degree?

Personal and home care aides

Footware manufacturing is projected to decrease output by 8.4% from 2006 to 2016. If footware manufacturing had 1.8 billion dollars of output in 2006, approximately how much output is expected in 2016?

$1.65 billion

The number of private investigators is expected to increase from 52,000 in 2006 to 61,000 in 2016. If there are 648,982 police officers in 2006, how many police officers must there be in 2016 to have a greater percent increase than that of private investigators?

761,307

Say a certain service industry has 78.9 thousand jobs in 2003, but expects to increase at an average annual rate of 2.65 thousand jobs yearly from 2003 to 2013. If this holds true, what will be this industry's percent increase from 2003 to 2013?

33%

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.
Which profession is projected to have the greatest percent of increase in the number of jobs from 2006 to 2016?

Orthodontist

Based on the above table, which occupation listed here is expected to have the smallest total number of jobs in 2016?

Makeup artists

A job market expert said, "If this trend continues, we will see further increase in employees." Which of the following graphs could represent the expert's statement?

B

Total employment for sheet metal workers in 2016 is projected to be 201,000. If this is a 6.3% increase from 2006, approximately what was the total employment in 2006?

189,000

According to the above graph, which industry will have 25% more growth than health services over the period from 2000 to 2010?

Computer and data processing

Antonio wants to choose a career path in which he would earn a median income of at least $20,000. He wants on-the-job training in a field projected to increase total employment by 2016. Based on the table above, which of the listed career choices matches his goals?

Security guard

The average hourly earnings for a construction worker is projected to be $24.50 in 2012. Jason wants to join the construction work force after he graduates in 2012. His friend tells him that average hourly earnings for construction workers will rise by 2% from 2009 to 2012. Based on the data below, assuming that the projected hourly earnings are correct, is Jason's friend's statement accurate?

NOT! His friend's statement is accurate. The average hourly earnings will increase by 2%.

Based on trends displayed in the graphs above, which answer choice represents a likely situation for 2010?

There will be roughly 6 million employees in 2010, and those employees will have average hourly earnings of $22.75.

Based on the above chart, which industry's average annual rate of change is projected to decrease the most in the 2006-2016 period as compared to its average annual rate of change during 1996-2006?

NOT! Federal government

The projected number of employed writers and authors in 2016 is 153,000. 12.4% of those will have some college experience but no degree, and 84.1% will have a bachelor's degree or higher. If this holds true, how many more writers and authors with bachelor's degree will there be than those with only some college experience and no degree?

109,701

Why is it useful to identify or analyze occupational and industrial trends when considering your career path?

Occupational trends can give you an idea of whether a certain industry is improving or declining, and might help you identify how competitive your specific job market will be.

Based on the above table, what is the fastest growing listed occupation for those without a college degree?

Dental assistants

U.S. Bureau of Labor Statistics, 2006.

Jasmine wants to enter a career with median earnings of at least $33,500, but she doesn't want to go to college. Which of the following occupations fits her plan?

Private detective

Say a certain manufacturing industry has 63.1 thousand jobs in 2008, but is expected to decline at an average annual rate of 1.7 thousand jobs per year from 2008 to 2018. Assuming this holds true, what will be this industry's percent change from 2008 to 2018?

NOT! -17%

Approximately how many more job openings are expected for security guards than pharmacy technicians?

21,000

In considering career options, Ella would like to enter an industry with at least 50% growth from 2000 to 2010. Based on the above graph, which of the following industries is not in that category?

Management and public relations

The following table shows the assets and liabilities of the Smith family in 2005 and 2009.
Based on the table, which of the following is true?

From 2005 to 2009, both assets and liabilities decreased.

Over the period of a year, Sam's net worth increased. Which of the following could be true?

Sam's assets increased by more than his liabilities.

When it goes on sale for $1,600, Mikah buys a new plasma television that is valued at $1,800. He takes $300 from his savings account to use as a down payment and finances the rest. Choose the true statement.

Mikah's assets increased by $1,500.

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

F

Which of the following modifications to the list of assets and liabilities below would result in a negative net worth?
House valued at $90,000.
Mortgage owed $78,000.
Car valued at $11,000.
Car loan of $5,000.
Student loan of $13,700.
Stocks valued at $2,500.
Savings of $3,000.

Borrowing $10,000 more in student loans.

Which of the following modifications to the list of assets and liabilities below would result in an increase in net worth?
Cash of $300.
Car valued at $28,000.
Car loan of $22,000.
Motorcycle valued at $6,000.
Savings of $2,000.
Credit card balances of $4,000.
Student loan of $10,000.

all of the above

The amount of money invested in a retirement fund is an example of which of the following?

investment asset

Ben owns a townhome valued at $195,000, but still owes $120,000 on the loan. Ben has $5,000 in savings and a balance of $1,400 on his credit cards. There is a balance of $20,000 owed on Ben's car which is valued at $38,000. What is Ben's net worth?

$96,600

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?

Mary increased both assets and liabilities.

Which of the following is a liability?

credit card balance

Which of the following is an example of increasing both current liability and use assets?

NOT! paying off car loan and investing money in retirement fund

In order to reduce their debt, the Johnsons sold some real estate property valued at $165,000 for $143,000. They paid off a loan balance of $100,000 and put the rest in savings. Which of the following is a true statement?

NOT! The Johnsons increased their net worth.

Which of the following modifications to the list of assets and liabilities below would result in a net worth of $100,000?
Recreational Vehicle valued at $110,000.
Car valued at $27,000.
Medical bills totaling $8,700.
Loan balance of $80,000.
Savings of $5,000.
Retirement fund of $50,000.
Credit card balance of $2,300.

NOT! recreational vehicle value decreasing to $100,000

The car owned by a person is part of his or her ____.

use assets

The amount of money in a savings account is an example of which of the following?

liquid asset

The Worthingtons love to travel, so when they retired they sold their house and purchased a motor home valued at $165,000. They tow their car, valued at $32,000 behind their motor home when they travel. The Worthingtons have medical bills totaling $1,300 and a balance of $3,000 on credit cards. Since they invested for retirement, the Worthingtons have $200,000 in investments and an additional $20,000 in their savings account. What is the Worthingtons' net worth?

$412,700

The Svensons find a refrigerator valued at $2,300 on sale for $1,900. They decided to withdraw $500 from savings to use as a down payment on the purchase of the refrigerator and took out a loan to pay the balance. Choose the true statement.

NOT! The Svensons' assets increased by $1,400.

Mr. Chavez has assets of $250,000 and liabilities of $18,000. He decides to finance the entire amount of the purchase of a car valued at $26,000. Which of the following is true?

NOT! Mr. Chavez increased both his assets and net worth.

The following table shows the assets and liabilities of the Chang family in 2007 and 2008.

From 2007 to 2008, assets increased and liabilities decreased.

The following table shows the assets and liabilities of the Smith family in 2005 and 2009.

The following table shows the assets and liabilities of the Smith family in 2005 and 2009.

Mike and Kate plan to save money for their wedding over a 20 month period. They will need to save $8,000 to help pay for the wedding. They set aside the same amount each month. After a year they saved $4,000. Mike and Kate know they must adjust their plan in order to meet their goal, so they came up with the following options:
Option A: Stay with saving the same amount they've been saving each month but postpone the wedding 2 months.
Option B: Increase the amount of money they save each month by $80 from what they've been saving.
Which of the following is a true statement?

NOT! Only option B will allow them to meet their goal.

One should continue to monitor his or her goals and adjust his or her plan for achieving them when it is necessary.

T

Kinsey has a plan to save $60 a month for 16 months so that she can purchase a new television. After 11 months Kinsey has saved $600. If the most that Kinsey can possibly save is $80 per month, which of the following statements is true?

Kinsey has a plan to save $60 a month for 16 months so that she can purchase a new television. After 11 months Kinsey has saved $600. If the most that Kinsey can possibly save is $80 per month, which of the following statements is true?

The Polleys want to put in a swimming pool next summer. They need to save $6,000 over 12 months in order to achieve this goal. They set aside the same amount each month and after 7 months discovered they have saved $3,100. The Polleys know that they must adjust their plan in order to meet their goal, so they come up with the following options:
Option A: Save the original amount each month but put the pool in one month later than originally planned.
Option B: Increase savings each month by $100 from their original plan.
Which of the following statements is true?

Neither option A nor option B will allow them to meet their goal.

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?

Shaniqua must work 27 hours per week to meet her goal.

Tom has a goal of saving enough money to buy a new set of rims for his car. Tom makes $7.50 an hour take home pay at his job working 15 hours per week. If the rims that Tom wants cost $900, how long will it take Tom to achieve his goal?

8 weeks

Investing money in a retirement fund is part of a plan for achieving _____.

Long term goals

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.

A and C

Tony works 22 hours per week. His take home pay is $15.80 per hour. If Tony is able to save all of his earnings, how long will it take him to save at least $4,800?

14 weeks

Trevor earns $7.80 an hour take home pay and works 20 hours each week. Trevor wants to buy a new laptop computer to take to college that costs $780. How many weeks will it take for Trevor to achieve his goal?

5 weeks

It is important to re-evaluate financial goals periodically. In which of the following situations would it be necessary to change an existing financial goal?

NOT! You came across unexpected income.

You are trying to save up for a spa package that costs $300. After looking at your paycheck, you decide that you will be able to set aside $50 a week for the next 6 weeks. Knowing this information, you call the spa to make a reservation for this package for 2 months from now. Which type of goal does this situation best describe?

Short term

Buying a car is an example of _____.

A short term goal

Fran brings home $225 per week working 15 hours of which she is able to save $40. Fran wants to have $1,400 saved at the end of 20 weeks. She may work up to 18 hours per week if she wants. She can save all of the money earned working the extra hours. Which of the following statements is true?

Fran must work 17 hours per week to meet her goal.

Vicki works 19 hours per week. Her take home pay is $17.30 per hour. If Vicki is able to save all of her earnings, how long will it take her to save at least $4,000?

13 weeks

To be able to go on the band trip, four band members each get a part-time job. Each person has 5 weeks in which to save his or her money. Analyze the four individual plans below and decide which of the four people will reach his or her goal of saving $285?
Member A: Works 8 hours per week at $6.15 per hour
Member B: Works 10 hours per week at $5.85 per hour
Member C: Works 7 hours per week at $7.25 per hour
Member D: Works 9 hours per week at $6.35 per hour

B and D

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?

Both options A and B will allow him to meet his goal.

Two plans for reaching a goal are given below.
Plan A: Save $450 over the next 8 weeks by working 9 hours per week at $7.20 per hour.
Plan B: Save $450 over the next 6 weeks by working 15 hours per week at $6.50 per hour.
Which of the following is a true statement?

Both plans will work for achieving the goal.

What is true about the way you should approach financial goals across different stages of your life?

As you progress through life, your values and financial possibilities will gradually change, which leads to an evolution of your financial goals over time.

Which of the following is not a good plan for achieving goals?

Set goals higher than what you feel you can achieve.

Yvonne has a goal of buying a brand new home within a year. She's afraid that she will be unable to save the money that she needs for a down payment. Which of the following should not be part of Yvonne's plan for achieving her goal of buying a home?

Borrow the money for the down payment and pay it back later

Chuy wants to buy a new television. The television costs $1,350. Chuy decides to save the same amount of money each week, for 27 weeks. After 8 weeks Chuy saved $440. Which of the following conclusions can you make about Chuy's plan?

Chuy will save more than he needs and will meet his goal in less than 27 weeks.

The Greens want to put an addition on their house 18 months from now. They will need to save $10,620 in order to achieve this goal. They set aside the same amount each month, and after a year discover they have saved $6,120. The Greens must adjust their plan in order to meet their goal, so they came up with the following options:
Option A: Stay with saving the original amount each month but put the addition on one month later than originally planned.
Option B: Increase the amount of money they save each month by $120 from their original plan.
Which of the following statements is true?

Neither option A nor option B will allow them to meet their goal.

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

managing liquidity

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.)

$624

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?

"Less than high school" and "High School Graduate"

If your expenses are more than your income, then you have a positive net cash flow.

F

Brenda has an associate's degree earning the median salary. She wants to quit working and go to college to get her 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?

almost 8 years

Total employment for sheet metal workers in 2016 is projected to be 201,000. If this is a 6.3% increase from 2006, approximately what was the total employment in 2006?

189,000

Padraig is a financial advisor. He earned a salary of $80,000 last year and sold stocks for $5,000. Which of the following types of income did Padraig have?
I earned income
II passive income
III capital gains income

I and III

Byron is a wealthy tycoon who makes his money buying and selling stocks. This is an example of _____ income.

capital gains

The table below shows the typical hours worked by employees at a company. A salaried employee makes $50,000 per year. Hourly employees get paid $20 per hour, but get $30 per hour for each hour over 40 hours.
Which of the payment options would you recommend to a new employee?

Hourly pay. Hourly employees make more per week than salaried employees.

Elisha is a photographer and charges a set fee to photograph weddings. This is an example of _____ income.

earned

Which of the following describes a situation where you would most likely choose passive income over another type of income?

NOT! You own a home. You can sell it now to make a profit or you can rent it out for a year, giving the renter the option to buy it for the balance owed.

Last year Frank had a total income of $58,800. He sold a house and made a profit of $27,940. He also had monthly income of $80 from investments. Frank works 25 hours per week as an hourly employee.How much more an hour would Frank had to have earned last year in order to have a total income of $59,970?

$0.90

The table below shows the typical hours worked by employees at a company. A salaried employee makes $78,000 per year. Hourly employees get paid $26 per hour, but get $39 per hour for each hour over 40 hours.
Which of the payment options would you recommend to a new employee?

Salaried pay. Salaried employees make more per week than hourly employees.

Scott earns $16.85 per hour at his job. He works 7 hours per day, 4 days per week. What is Scott's gross monthly income for 4 weeks?

$1,887.20

Last year Lenny had an annual earned income of $58,475. He also had passive income of $1,255, and capital gains of $2,350. What was Lenny's total gross income for the year?

$62,080

Loretta's income last year was $81,300. She made $56,800 at her salaried job and had additional passive income. If Loretta earned the same amount of passive income each month for the entire year, approximately how much per month was it?

$2,040

Which of the following statements is always true?

Workers being paid on commission get paid based solely on their performance.

Choose the method of pay that would result in the most earnings for one month on sales of $60,000.

Graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.

Erica sells magazine subscriptions and makes a flat rate of $5.35 for each subscription she sells. If Erica made $42.80 on Monday, $64.20 on Tuesday and $74.90 on Wednesday, how many subscriptions did she sell in the three days?

34

An employee makes an hourly rate plus any tips they earn. This tip employee made a total of $400 by working 28 hours last week. If $253 of their total earnings was their tips, what is their hourly rate of pay?

$5.25

The earnings of two employees are given below:
Employee A: 6% commission on all sales
Employee B: 4% commission on the first $80,000 and 8% on anything over $80,000
How much more does a straight commission employee make than the graduated commission employee for sales of $100,000?

$1,200

Max has a monthly salary of $1,100 and also earns 7.5% commission on his sales. If Max had $43,000 in sales last month, what were his total earnings for the month?

$4,325

A graduated commission employee makes 3.5% interest on the first $50,000 in sales and 6.5% interest on all sales over $50,000. Which of the following expressions represents the employee's total earnings on $81,500 in sales?

(0.035)(50,000) + (0.065)(31,500)

Tamara gets paid an annual salary of $48,000 and earns 4% commission on all sales she makes. If Tamara wants to make $6,000 this month, how much in sales does she need to have?

NOT! $150,000

Which of the following employees derives their income from a fee for the items sold?

commission

Mr. Gonzalez earns his living as a salary plus commission employee. His annual salary is $18,000. He makes 4% commission on all of his sales. Mr. Gonzalez wants to earn $60,000 this year. If his earnings are divided evenly throughout the year, how much in monthly sales would Mr. Gonzalez need to have?

$87,500

Gary earned a gross pay of $1,047.30 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social Security tax deducted from Gary's gross pay.

$64.93

The total amount of deductions from an employee's gross pay is $83.20. If the gross pay is $378.18, what percent of their gross pay is being withheld?

22%

A statement of an employee's biweekly earnings is given below.
What is the employee's gross pay?

$852.96

Lauren has gross pay of $765 and federal tax withholdings of $68. Determine Lauren's net pay if she has the additional items withheld:
Social Security tax that is 6.2% of her gross pay
Medicare tax that is 1.45% of her gross pay
State tax that is 22% of her federal tax

NOT! $691.52

Marquis has a gross pay of $816. By how much will his gross pay be reduced if Marquis has the following items withheld?
federal tax of $92
Social Security tax that is 6.2% of his gross pay
Medicare tax that is 1.45% of his gross pay
state tax that is 22% of his federal tax

$174.66

The following federal tax table is for biweekly earnings of a single person.
How will the federal tax affect a gross biweekly pay of $780 for a single person claiming 6 exemptions?

It will not affect gross pay.

Juanita receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 19% of federal tax, determine if Juanita's net pay is correct.
Choose the true statement below.

The net pay is correct.

Selina claims single having one exemption. Her state tax deduction is 21% of her federal tax contribution. Calculate the amount of state tax Selina owes if her gross pay for two weeks is $840.

The following federal tax table is for biweekly earnings of a single person.

$16.80

The following federal tax table is for biweekly earnings of a single person.
How will the federal tax affect a gross biweekly pay of $840 for a single person claiming 5 exemptions?

NOT! It will decrease gross pay by $11.

Chloe receives her paycheck and knows that her gross pay and federal tax are correct. Using the fact that Social Security tax is 6.2% of gross pay, Medicare tax is 1.45% of gross pay and state tax is 23% of federal tax, determine if Chloe's net pay is correct.

The net pay is correct.

Miguel's employer pays $1,825 in health insurance and $93 in life insurance per year. He also gets $2,860 in paid time off per year. His monthly gross pay is $3,890. What are Migual's total job benefits per year?

$51,458

Leroy's total employee compensation was $50,150 last year. His total job expenses for traveling and for professional developement for the year were $3,500. Which of the following represents his total job benefits?

$53,650

Marisol receives total employee benefits that are 14.5% of her gross annual pay. If Marisol has a gross annual pay of $50,000, how much in total employee benefits does she receive?

$7,250

Which of the following employees has the greatest total employee compensation?

Employee B: total job benefits $68,400 and total job expenses $300

The gross pay, benefits and job expenses for two different employees are shown below.
Employee A: gross pay $57,200, employee benefits $5,300, job expenses $800
Employee B: gross pay $56,900, employee benefits $6,200, job expenses $1,400
Which of the following is a true statement?

The total employment compensations for the two employees are the same.

Which of these is an example of an employer using benefits to encourage employees to stay with the company?

NOT! The employer provides paid time off, which the employee must use in the calendar year.

Trevor's total employment compensation is $33,500. If Trevor has no job expenses and his gross pay is $28,600, then his total employee benefits are _____% of his gross pay.

17.1

Which of the following companies offers the greatest total employment compensation?

Company D (Gross pay $39,400
18% of gross pay in total employee benefits)

Which of the following is the best thing to consider when making comparisons between job offers?

total employment compensation

If total employee benefits are calculated as a percentage of their gross pay, which of the following employees receives the largest amount in total employee benefits?

NOT! Employee A: gross pay $32,600 , total job benefits $33,600

Which of the following companies offers the greatest total employment compensation?

Company C

An employee has an annual salary of $51,300. They receive $2,830 in health insurance and $4,600 in paid time off per year. They drive their personal vehicle for work which costs them $600 per month, but the company reimburses them $0.54 per mile for the total work miles driven. If the employee drives 36,000 miles for work for the year, what will be their total employment compensation?

$70,970

Miguel's employer pays $1,825 in health insurance and $93 in life insurance per year. He also gets $2,860 in paid time off per year. His monthly gross pay is $3,890. What are Migual's total job benefits per year?

$51,458

If gross pay increases by $500, total job benefits increase by $200 and total job expenses decrease by $300, then total employment compensation _____.

NOT! increases by $400
MAYBE... increases by $1,000

Which of the following employees has the largest gross pay?

Employee C: Total employee benefits $1,000
Total job benefits $51,900

Kai had a gross weekly paycheck of $616 last week. Kai worked 6 hours for 4 of the days and 8 hours on 1 day. What is Kai's hourly rate of pay?

$19.25

The table below shows the earnings, in thousands of dollars, for three different commissioned employees.
Which employee did not have the same dollar amount in sales for the month of February as the other two employees?

Employee #1.

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