Personal Finance Test Review 6

Transcription

1 Personal Finance Test Review 6 Multiple Choice Identify the choice that best completes the statement or answers the question. Figure 9.2 Use this table with the question(s) below, as needed. 1. Use Figure 9.2. Amy Miller s insurance policy includes 25/100 bodily injury limits and $25,000 property damage. Her vehicle is in age group B and insurance rating group 14. She has a $50 deductible comprehensive and $50 deductible collision insurance. Miller s driver-rating factor is 2.4. What is her annual premium? a. $745 c. $1,788 b. $895 d. $2, Use Figure 9.2. Ivan Cabrerra s insurance policy includes 50/100 bodily injury limits and $50,000 property damage. Her vehicle is in age group B and insurance rating group 13. She has a $50 deductible comprehensive and $50 deductible collision insurance. Miller s driver-rating factor is 2.2. What is her annual premium? a. $790 c. $1,512 b. $895 d. $1, Use Figure 9.2. Clive Williams is the principal operator of his vehicle. His driver-rating factor is 2.8 and his car is in age group D and insurance-rating group 11. The coverage he wants to purchase is 50/100 bodily injury and $100,000 for property damage. He would also like to have $50 deductible for both comprehensive and collision. What is his annual base premium? a. $1, c. $1, b. $1, d. $1,825.60

2 4. Use Figure 9.2. Kevin Mahan is the principal operator of his vehicle. His driver-rating factor is 1.8 and his car is in age group C and insurance-rating group 10. The coverage he wants to purchase is 50/100 bodily injury and $25,000 for property damage. He would also like to have $50 deductible for both comprehensive and collision. What is his annual base premium? a. $1, c. $1, b. $1, d. $1, Molly Pierce s annual base premium is $1, and her driver-rating factor is 1.5. What is her annual premium? a. $ c. $1, b. $1, d. $1, Patti Green and her husband are purchasing a condominium for $123,000. They have $15,000 for a down payment. What is the amount of their mortgage loan? a. $108,000 c. $116,700 b. $110,850 d. $120, Jackie Kessel has found a home she would like to purchase. The seller accepts her offer of $210,900. Jackie will make a down payment of 15%. What is the amount of her mortgage loan? a. $123,764 c. $180,009 b. $179,265 d. $185, Adam Wilcox is purchasing a home for $189,000. The bank is willing to finance the purchase if Wilcox can make a down payment of of the selling price. How much money will he need for the down payment? a. $25,000 c. $52,300 b. $47,250 d. $56, Linda Griffith is planning to buy rental property. She finds a home priced at $92,000. What is the amount of Griffith s mortgage loan if a down payment of 10% is required? a. $81,800 c. $82,500 b. $81,900 d. $82, Hazeline Allen s mortgage loan amount is $87,750. She financed her house for 30 years with monthly payments of $725. At the end of 30 years, what will be the total amount of interest charged? a. $116,115 c. $173,250 b. $152,725 d. $261,000 Figure Use this table with the question(s) below, as needed. Monthly Payment for a $1,000 Loan Interest Length of Loan in Years Rate % $7.16 $6.44 $ % % % % %

3 11. Use Figure Tim and Kiesha Woodall purchased a home priced at $186,700. They put $28,005 down and financed the rest at 7% for 20 years. What is the amount of their monthly mortgage payment? a. $1, c. $1, b. $1, d. $1, Use Figure James Chu purchased a home for $113,400. As a first-time homeowner, the bank only requires a 5% down payment. The rest is financed at 6.5% for 30 years. What is the amount of her monthly payment? a. $ c. $ b. $ d. $ Use Figure Shawn Fitzgerald finds a suitable property and agrees upon a selling price of $137,900. The mortgage company requires a 20% down payment and Shawn chooses to finance the property for 30 years at 8%. What is the total amount of interest charged, rounded to the nearest whole dollar? a. $137,630 c. $181,190 b. $164,320 d. $187, Use Figure Ruby Taylor decided to purchase a condominium. She found a property and the owner accepted her offer of $165,000. The financing company requires a 10% down payment for a 30-year loan at 6%. At the end of 30 years, what will be the total amount of interest charged? a. $154,389 c. $167,325 b. $165,000 d. $172, Dan Miller has been granted a $120,000 mortgage loan. When signing the papers to purchase his new home, he will need to pay the closing costs shown below. What are the total closing costs? Application Fee $ 25 Borrower s Credit check 65 Points 2% of Mortgage Appraisal Fee 350 Title Search 215 Title Insurance 450 Attorney Fee 400 Documentation stamp 0.30% of Mortgage Processing fee 1.25% of Mortgage a. $4,235 c. $6,120 b. $5,765 d. $7, Fred Landers and his brother are interested in purchasing a house priced at $310,000. They plan to put 30% down and finance the remaining amount through Anderson Savings. Anderson Savings has the following closing costs: credit report, $100; appraisal report, $250; title insurance, $190; survey and photographs, $275; recording fees, $70; and legal fees, $280. If the loan is approved, how much cash will Fred and his brother need to secure the loan, including the down payment? a. $92,259 c. $95,389 b. $94,165 d. $97, Shelly Moyer has been granted a mortgage loan at an annual interest rate of 6% for 20 years by Patterson Mutual. The home has a selling price of $170,000. The bank requires a 20% down payment. What are Shelly s closing costs including the down payment?

4 Credit report $ 70 Loan origination fee: 2.0% of mortgage Abstract of title 100 Attorney fee 275 Documentation stamp fee: 0.3% of mortgage Processing fee: 1.10% of mortgage a. $35,019 c. $39,699 b. $39,019 d. $40, Nahla Burtoni is buying her first home for $125,000. She has been granted a mortgage loan at an annual interest rate of 8.5% for 20 years with a $25,000 down payment. Closing costs are 2% of the amount of the mortgage loan and will be financed as part of the mortgage. What is the actual amount financed with the mortgage? a. $100,000 c. $120,000 b. $102,000 d. $125, The Butler County tax assessor determines that the market value of Greg Wilson s home is $123,000. The rate of assessment in Butler County is 28% of market value. What is the assessed value of Greg s home? a. $32,220 c. $34,440 b. $32,550 d. $34, Amanda Wolpert s home in Richmond, Virginia, has an assessed value of $74,200. The tax rate where she lives is mills. What is her annual real estate tax? a. $1, c. $1, b. $1, d. $1, Reggie Patterson received a tax statement showing that the market value of his home is $209,900. The rate of assessment in his locality is 40%. What is the assessed value of Reggie s home? a. $43,673 c. $82,728 b. $56,289 d. $83, Melissa Doubet s home is insured for 90% of its replacement value of $94,000, or $84,600. Use the chart below to determine the amount of coverage for her personal property. Insurance Coverage Chart Coverage Percent of Coverage Garage and other structures 15% Loss of use 30% Personal property 60% a. $47,328 c. $50,760 b. $49,970 d. $51, Cristina Suarez has insured her home for 80% of its replacement value of $155,000. Use the chart below to determine the amount of coverage for her personal property. Insurance Coverage Chart Coverage Percent of Coverage Garage and other structures 20%

5 Loss of use 25% Personal property 45% a. $55,800 c. $66,900 b. $58,200 d. $67, Dave Amata and his family purchased a new home that has an estimated replacement value of $275,000. They want to insure their home for 85% of its replacement value. What is the amount of the coverage on their home? a. $217,786 c. $228,665 b. $223,145 d. $233,750 Figure Use this table with the question(s) below, as needed. Homeowners Insurance Premiums Annual Premiums for a Typical Homeowners Policy Fire Protection Class Amount of Insurance Brick / Masonry Veneer Wood Frame Coverage $ 40,000 $ 166 $ 170 $ 225 $ 237 $ 270 $ 178 $ 183 $ 237 $ 248 $ , , , , , , , , , , , , , ,021 1, ,021 1,086 1, , ,147 1,218 1, ,218 1,295 1, ,000 1,021 1,045 1,331 1,413 1,617 1,067 1,105 1,413 1,504 1, ,000 1,309 1,340 1,707 1,812 2,074 1,385 1,418 1,812 1,929 2, Use Figure Julie Arco s home is insured for 90% of its $100,000 replacement value, or $90,000. The home is of wood-frame construction and is rated in fire protection class 8. What is Julie s annual insurance premium? a. $218 c. $305 b. $296 d. $ Use Figure Louise Ponce and her family own a vacation home on Lake Michigan. It is insured for 80% of its $150,000 replacement value. The home has a wood-frame construction and has been rated fire protection class 10. What is the amount of coverage for loss of use? What is the annual insurance premium? a. $120,000; $508 c. $150,000; $657 b. $120,000; $534 d. $150,000; $692

6 27. Use Figure Ramon Sheen owns a home that has a replacement value of $312,500. He purchased a homeowner s policy for 80% of its replacement value. The home is of brick construction and is rated fire protection class 4. What is his annual insurance premium? a. $627 c. $657 b. $633 d. $ Use Figure Emma Campo has insured her house for 90% of its $100,000 replacement value. The house is of wood-frame construction and is rated fire protection class 11. What is Emma s annual insurance premium? a. $123 c. $464 b. $243 d. $ Cesar Santiago recorded his housing expenses for the month of September as follows: $ for mortgage payment, $23.70 for insurance premium, $87.40 for real estate taxes, $76.36 for electricity, $21.18 for telephone service, and $19.30 for water. What is his total monthly housing cost? a. $ c. $ b. $ d. $ Craig Allen is considering purchasing a new home. He estimates the following monthly housing expenses: $ for his mortgage payment, $27.75 for his insurance premium, $95.25 for real estate taxes, $98.64 for electricity, $44.40 for telephone service, and $11.20 for water. What is his total monthly housing cost? a. $1, c. $1, b. $1, d. $2, Ernesto Baca is employed by Bigg Company. He has a family membership in his company s health insurance program. The annual premium is $5,432. Ernesto s employer pays 80% of the total cost. Ernesto s contribution is deducted from his paycheck. What is his annual contribution? a. $1, c. $1, b. $1, d. $1, Kerri Payne is employed by Caterer s Central. She has a family membership in the health insurance program. The annual premium is $6,486. Kerri s employer pays 80% of the total cost. Her contribution is deducted from her paycheck. What is Kerri s annual contribution? a. $1, c. $1, b. $1, d. $2, Stanley McBride is employed by the True Blue company. The PPO annual premium is $7,058. His employer pays 70% of the total cost. His contribution is deducted from his paycheck. What is Stanley s weekly deduction? a. $32.98 c. $59.21 b. $40.72 d. $ Lara Otero is employed by Parks Inc. She is on a single plan with a PPO annual premium of $6,009. Lara s employer pays 75% of the total cost. Her contribution is deducted from her paycheck. What is Lara s semimonthly deduction? a. $49.66 c. $62.59 b. $57.78 d. $ Kathy Parker s employer pays 65% of the total cost of her $5,489 health insurance premium. What is her biweekly deduction for the insurance? a. $67.54 c. $73.89 b. $71.20 d. $80.05

7 36. Brady Adams is single and has a health insurance plan with the benefits shown in the figure below. His recent network health care costs include co-payments for 7 physician visits and 8 specialist visits. Following hospital surgery he made co-payments for 12 physical therapy visits and he had 80 visits from a home health care nurse at $55 each. His hospital admission charge was $250 and his hospital bill was $15,098. What amount did he pay? Health Care Benefits Schedule Network Non-Network* Annual Deductible Single $275 $ 400 Family $750 $1,600 Hospital Charges %** 70%** Home Health Care First 50 visits 100%** 85%** Over 50 80%** 85%** Co-insurance/Co-payment Physician visit $ 15 $ 18 Specialist $ 30 $ 35 Physical Therapy First 15 visits $ 15 80%** Over 15 visits 85%** 75%** Emergency Room $ 55 $ 55 Ambulance $ 20 $ 20 *Non-Network refers to a health care provider that doesn t have a contract with the health plan administrator. **Percentage of total cost that is covered by the health care company. a. $3, c. $4, b. $4, d. $5, Juanita Espinosa is single and has a health insurance plan with the benefits shown in the figure below. Her network health care costs over the last year include co-payments for 19 physicians visits and 17 specialists visits. Following hospital surgery she made co-payments for 20 physical therapy visits for $100 per visit, and she had 60 visits from a nurse at $50 each. Her hospital admission charge was $300 and her hospital bill was $14,597. What amount did she pay? Health Care Benefits Schedule Network Non-Network* Annual Deductible Single $375 $ 500 Family $800 $1,750 Hospital Charges %** 65%** Home Health Care First 50 visits 100%** 90%** Over 50 90%** 90%** Co-insurance/Co-payment Physician visit $ 10 $ 12 Specialist $ 25 $ 30

8 Physical Therapy First 15 visits $ 15 75%** Over 15 visits 80%** 70%** Emergency Room $ 60 $ 50 Ambulance $ 30 $ 30 *Non-Network refers to a health care provider that doesn t have a contract with the health plan administrator. **Percentage of total cost that is covered by the health care company. a. $3, c. $4, b. $3, d. $4, Joshua Freeman has a family membership in his company s health insurance plan with the benefits shown. His recent non-network health care costs include co-payments for 10 physicians visits. Following hospital surgery he made co-payments for 10 physical therapy visits for $150 per visit, and he had 50 visits from a nurse at $55 each. His hospital admission charge was $300 and his hospital bill was $14,500. What amount did he pay? Health Care Benefits Schedule Network Non-Network* Annual Deductible Single $ 275 $ 400 Family $ 750 $1,600 Hospital Charges %** 70%** Home Health Care First 50 visits 100%** 85%** Over 50 80%** 85%** Co-insurance/Co-payment Physician visit $ 15 $ 18 Specialist $ 30 $ 35 Physical Therapy First 15 visits $ 15 80%** Over 15 visits 85%** 75%** Emergency Room $ 55 $ 55 Ambulance $ 20 $ 20 *Non-Network refers to a health care provider that doesn t have a contract with the health plan administrator. **Percentage of total cost that is covered by the health care company. a. $7, c. $7, b. $7, d. $7, Kasha Griggsby has a family membership in her company s health insurance plan with the benefits shown. Her recent network health care costs include co-payments for 5 physicians visits. Following hospital surgery she made co-payments for 5 physical therapy visits. Her hospital admission charge was $200 and her hospital bill was $10,000. What amount did she pay?

9 Health Care Benefits Schedule Network Non-Network* Annual Deductible Single $200 $ 300 Family $600 $1,200 Hospital Charges %** 75%** Home Health Care First 50 visits 100%** 95%** Over 50 90%** 95%** Co-insurance/Co-payment Physician visit $ 20 $ 22 Specialist $ 25 $ 40 Physical Therapy First 15 visits $ 20 90%** Over 15 visits 75%** 85%** Emergency Room $ 60 $ 65 Ambulance $ 75 $ 80 *Non-Network refers to a health care provider that doesn t have a contract with the health plan administrator. **Percentage of total cost that is covered by the health care company. a. $1,000 c. $6,000 b. $5,000 d. $7, Carl Pitt is 35 years old. He wants to purchase a $50,000, 5-year term life insurance policy. The premium per $1,000 is $2.50. What is his annual premium? a. $ c. $ b. $ d. $ Asana Cruz is 45 years old. She wants to purchase a $50,000, 5-year term life insurance policy. The premium per $1,000 is $4.87. What is her annual premium? a. $ c. $ b. $ d. $ Figure Annual Premiums per $1,000 of Life Insurance Annual Premiums per $1,000 of Life Insurance: 5-Year Term* Age Male Female $ 3.21 $ * Minimum amount is $50,000

10 42. Use Figure Thomas Allen is 50 years old. He wants to purchase a $50,000, 5-year term life insurance policy. What is his annual premium? a. $ c. $ b. $ d. $ Use Figure Carla Arslanian is 55 years old. She wants to purchase a $100,000, 5-year term life insurance policy. What is her annual premium? a. $858 c. $1,200 b. $909 d. $1, Dierdre Sullivan took out a $100,000, 10-year term policy at age 40. The premium per $1,000 was $3.30. She will be 50 years old next year when the premium per $1,000 will be $5.90. What is the amount of the increase? a. $250 c. $270 b. $260 d. $ Taylor Breen took out a $100,000, 5-year term policy at age 48. The premium per $1,000 was $4.70. He will be 53 years old next year when the premium per $1,000 will be $6.40. What is the amount of the increase? a. $133 c. $170 b. $136 d. $ Keena Williams took out a $100,000, 5-year term policy at age 40. The premium per $1,000 was $3.56. She will be 45 years old this year. The premium per $1,000 will be $4.62. What is the percent increase to the nearest whole number? a. 28% c. 32% b. 30% d. 34% 47. Samantha David took out a $70,000, 5-year term policy at age 45. The premium per $1,000 was $4.21. She will be 50 years old this year. The premium per $1,000 will be $5.90. What is the percent increase to the nearest whole number? a. 40% c. 45% b. 42% d. 52% 48. Jeff Conrad is 30 years old. He wants to purchase a whole life policy valued at $50,000. Use the figure below to calculate his annual premium. Annual Premiums per $1,000 of Life Insurance Whole Life Age Male Female 20 $ 8.00 $ a. $ c. $ b. $ d. $587.50

11 Completion Complete each statement. 49. A clause requires you to pay either a set amount or a certain percent of your medical expense. 50. insurance is financial protection for the family in case the main source of income dies.

12 Personal Finance Test Review 6 Answer Section MULTIPLE CHOICE 1. OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: 11.3

13 41. OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: OBJ: 11.4 COMPLETION 49. OBJ: OBJ: 11.3