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1)Debra estimates that her take-home pay for the coming year will be $1420 per month. She expects total monthly expenses to be as follows: housing and utilities, $800; food, $200; auto, gas, and insurance, $220; credit card payment, $60; and other expenses $100. The balance on her credit card is $3100, and she currently pays 18 percent interest on this balance. Debra would like to reduce her credit card debt. If she decides to budget all of her net monthly cash flow to this goal, how long will it take (in months) to pay off her credit card?

31

26

74

42

2)Mary and James are planning their budget for the next year. Their monthly fixed-rate mortgage payment is currently $800 with monthly utilities amounting to $80. Assuming an inflation rate of 3%, what should they project for next year?

Mortgage payment of $800 and taxes plus insurance of $80

Mortgage payment of $824 and taxes plus insurance of $80

Mortgage payment of $824 and taxes plus insurance of $82

Mortgage payment of $800 and taxes plus insurance of $82

3)The Brians have saved up a 2 months reserve fund but are still short of where they want to be. If their savings account has $8900 in it, and they want their reserve to be 5 times their monthly expenses, how much more do they need to add to the reserve fund?

$13350

$4450

$17800

$8900

4)Jennifer made six charges on her debit card that were denied by her bank for insufficient balance. The bank charges a $25 overdraft fee per rejected transaction due to insufficient funds. Her balance based on her register before the charges was $1450. What will her bank balance be after rejecting these charges and assessing overdraft fees?

$1600.00

$1300.00

$1425.00

$1450.00

5)You have invested $2600 in an account that promises a 3 percent APY. Assuming you leave the original investment and all earned interest in the account, and ignoring taxes, estimate how long will it take to double your money?

12 years

72 years

4.16 years

24 years

6)Overdraft protection is an

automatic loan in the amount of the insufficient funds to cover an incoming check or debit.

automatic transfer of funds from your savings account to your checking account in the amount of the insufficient funds to cover an incoming check or debit.

insurance program that will protect you from check and debit card fraud.

insurance program that will cover the penalty fees if you deposit a bad check.

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