Financial Literacy Sommerman Review Unit 2 Test Lessons 13-22

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1 Financial Literacy Sommerman Review Unit 2 Test Lessons Name: Hour: SC13: I can calculate the interest earned in 1 year for savings accounts given the APR. I can calculate the APY given the APR. 1. Assume you are depositing $3,500 into a 6-month CD that has a 1.5% APR compounded daily. a. What is the annual interest? b. What is the annual yield? SC14: I can calculate the quoted price of a bond. I can calculate the annual interest of a bond. I can calculate the yield to maturity for a bond. I can determine bonds sold at a premium or discount. 2. Using the given information below, answer the following questions. a. What is the quoted price? b. What is the annual interest? c. What is the yield to maturity? Financial Term Bond Face Value $2,500 Quoted Price (%) 89.5 Maturity 30 years Coupon Rate 4% d. What is the interest earned at maturity? e. Is the yield to maturity <,>, or = to the coupon rate? f. Is the bond being sold at a premium, a discount, or nether? SC15: I can calculate the total cost of buying stock. I can calculate the annual dividend of a stock. I can calculate the annual yield of a stock. I can determine the capital gain/loss when selling stocks. 3. Derek purchased 400 shares of stock $16.95 per share. His full-service stockbroker charged a $40.00 commission for the transaction. The company paid annual dividends of $2.25 per share. He sold the stock for $45.10 per share and paid a sales commission of 3% of the sale. a. What was the total paid for the stock? b. What is the total annual dividend? c. What is the annual yield to the nearest hundredth of a percent? d. What is the net amount of the sale? e. Is this capital gain or capital loss?

2 SC16: I can calculate sales tax. I can calculate the total purchase price of an item. 4. The Smith family went to the Burger Den in a state that charges 8% sales tax. They purchased the following items: 1 $ lasagna $ veal cutlet $ manicotti $ $0.75 each 2 $1.20 each 1 birthday $5.00 a. Calculate the total selling price of the family s meal? b. Find the 8% sales tax. c. A gratuity of 15% must be added to your total bill. Find 15% of your total bill. d. Calculate the final cost of your dinner. SC17: I can calculate the unit price of an item. I can use the unit price to determine the better buy. 5. An 8-pack of 75 notes per pad sells for $4.97. A 12-pack of 75 notes per pad sells for $7.47. A 4-pack of 50 notes sells for $1.97. Which size package is the better buy? SC18: I can calculate the sale price. I can calculate the total markdown. 6. The coupons listed below can be used for purchases made this week at Martin s. Use the information and the chart below to determine how you save. Coupons: -10% off any canned ham (limit 1 ham) -$0.15 off each half gallon of ice cream (no limit) -$0.10 off each can of sweet peas (limit six cans) -$0.75 off each jar of honey (limit 2 jars) -One box of facial tissues free with each two boxes purchased at regular price (no limit) -25% off each package of fig bars (limit 3 packages) Item Price Grocery List: -2 Jars of Honey -1 Canned Ham -1 gallon of ice cream a. What is the total price WITHOUT coupons/discounts? Ham 3 $6.29 Butter 1 $1.69 Ice Cream ½ $2.19 Peas 8-oz $0.45 Honey 1 $3.49 Tissues Each $.99 Fig Bars 1 $1.50 Toothpaste 1 $1.59 b. What is the total price WITH coupons/discounts? c. What is the markdown?

3 SC19: I can convert between different forms of currency. Name In US $ Per US $ Canadian Dollars Indian Rupee Venezuelan Bolivar Sarah is exchanging US dollars Canadian dollars prior to her trip. How much will she receive in Canadian dollars for her $625 US dollars if there is a 8% transaction fee? SC20: I can calculate health insurance premiums. I can calculate costs for health care. 8. Hermosa is employed by Chemical Industries. She has a family membership in the group preferred provider organization (PPO). The annual premium is $7,610. Her employer pays 75 percent of the premium. a. Find the employee s total annual contribution. b. Find the employee s monthly deduction. 9. Sharon is single and has a health insurance plan with the benefits shown in the figure below. Her recent network health care costs include co-payments for 9 physician visits and 10 specialist visits. Following hospital surgery, she made co-payments for 15 physical therapy visits. Her hospital admission charge was $240 and her hospital bill was $ Using the chart below, calculate the amount she paid? Health Care Benefits Schedule Network Non-Network Annual Deductible Single $300 $600 Family $900 $1,800 Hospital Charges %** 70%** Home Health Care First 50 visits 100%** 80%** Over 50 visits 80%** 80%** Co-insurance/Co-payments Physician visit $10 $12 Specialist visit $20 $25 Physical Therapy First 15 visits $15 70%** Over 15 visits 80%** 70%** Emergency Room $50 $50 Ambulance $25 $25

4 SC21: I can use tables to compute the annual premium for term life insurance. I can calculate the percent increase for term-life insurance plans. Use the chart below to answer the following questions: Annual Premium per $1,000 of Life Insurance: 5-year term Age Male Female $2.47 $ *Minimum amount is $50, Phil purchased a $120,000, 5-year term policy when he was 50. Now he is 55. a. What will the annual premium be at age 55? b. What was the annual premium at age 50? c. How much is the increase? d. What is the percent increase? SC22: I can use tables to compute the annual premium for whole and universal life insurance. I can determine the amount saved by paying the premium annually. Use the charts below to answer the following questions. Optional Payment Plans Percent of Annual Premium Semi-Annual Premiums 50.50% Quarterly Premiums 25.50% Monthly Premiums 8.50% 11. Tara is 50 years old. She wants to purchase a $100,000 Whole life insurance policy. a. What is her annual premium? b. What is her semi-annual premium? c. How much does she save by paying the premium annually? Age Annual Premiums per $1000 of Life Insurance Monthly Premium Paid at Age 65 Whole Life $50,000 Universal Life Male Female Male Female Male or Female

5 ANSWERS 1a b a b. 100 c. 4.5% d e. > f. Premium 3a b. 900 c. 13.3% d e , gain 4a b c d pack 6a b c a b a b c d. 50.9% 11a b c

Financial Literacy Semester 1 Final Exam Review

Financial Literacy Semester 1 Final Exam Review Name: Hour: All work must be shown to receive full credit. Your work must match the answer. SC 1: I can calculate straight-time pay. 1. Find the straight