Personal Finance Exam Review

Yarin’s gross pay for the year was $3,500. The federal income tax withholding from his pay was 9% of his gross pay. Yarin determined the federal income tax he owes is $115. How much of a refund can Yarin expect? $200
What term is used to describe an individual’s money and personal property? assets
Emma has decided that she needs to assess the risk and return of buying an extended warranty for her new laptop for school. Which of these practical questions should she ask herself to assess the risk? Will the warranty cover the cost for any physical damage?Is the cost of replacement less than the cost of the warranty?Is the laptop worth the extra expense of the warranty?
Through the successful study of personal finance, an individual will be better prepared for potential problems.
In some cases, it is safe to avoid insurance because it may not be needed.
Which best describes the purpose of recording past income and spending in a budget? to serve as the basis for future planning
What does purchasing insurance for a business reveal about the business owner’s attitude toward financial risk? It shows that the owner acknowledges the financial risks and is willing to pay every month to transfer the risk to an insurance company.
What is one cost of avoiding insurance? falling into debt if faced with a serious problem
Iliana’s gross pay is $2,130 per month. Her deductions total $270. She budgets for $1,000 in fixed expenses and $400 in variable expenses. How much money will Iliana be able to save? $460
liability: a responsibility to pay for or fix a problem
A refrigerator is priced at $1,250. There are two options offered to reduce the price: either a 25% discount off the price or a rebate of $300. Which is the better choice, and what is the extra amount saved? The 25% discount is better; it saves $12.50 more.

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