Dallas needs a new refrigerator that costs $799. Which of the following payment methods should Dallas use to pay for the refrigerator? Dallas wants to make sure there are sufficient funds to cover the purchases and minimize the interest, if any, that will be needed to pay for the purchases.
Method 1: He should use the debit card with a $600 balance.
Method 2: He should use the credit card with a $1,000 credit limit and a potential 5% interest on the purchases if the amount is not paid in full by the statement’s due date. Method 3: He should use a $799 payday loan with 7% interest.(1 point)
To ensure that there are sufficient funds and to minimize potential interest, Dallas should use payment Method __ to make the purchase.
11 answers
Dallas should use Method 1: He should use the debit card with a $600 balance to make the purchase. This method will ensure that there are sufficient funds to cover the purchase without incurring any interest.
Christian has been saving $170 monthly for college. The investment account set up for him has a 3.75% annual interest rate, compounded monthly. If Christian invests $170 monthly over a 4-year period, he will have a total amount of $8,816.47. On average, the annual cost of a 2-year public institution in the 2020-2021 academic year is $3,900. Would this be enough for Christian to cover the cost of 2 years at a 2-year public institution? If Christian were to save the money without gaining any interest, approximately how long would it take him to reach $8,816.47?
Answers:
A: No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian approximately 4 years and 4 months to save up $8,816.47.
B: No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47.
C: Yes, $8,816.49 is enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian approximately 4 years and 4 months to save up $8,816.47.
D: Yes, $8,816.49 is enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47.
Answers:
A: No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian approximately 4 years and 4 months to save up $8,816.47.
B: No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47.
C: Yes, $8,816.49 is enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian approximately 4 years and 4 months to save up $8,816.47.
D: Yes, $8,816.49 is enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47.
The correct answer is:
B: No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47.
B: No, $8,816.49 is not enough to cover the cost of 2 years at a 2-year public institution. Without earning interest, it would take Christian the same 4 years to save up $8,816.47.
Alvin wants to become a hairdresser. He can save $250 a month for two years, and his family has promised to help him with the rest. His training will cost $9,500. How much will his family have to pay?(1 point)
To find out how much Alvin's family will have to pay, we subtract the amount Alvin can save from the total training cost:
Family payment = Total training cost - Alvin's savings
Family payment = $9,500 - ($250/month * 12 months * 2 years)
Family payment = $9,500 - ($250/month * 24 months)
Family payment = $9,500 - $6,000
Family payment = $3,500
Therefore, Alvin's family will have to pay $3,500.
Family payment = Total training cost - Alvin's savings
Family payment = $9,500 - ($250/month * 12 months * 2 years)
Family payment = $9,500 - ($250/month * 24 months)
Family payment = $9,500 - $6,000
Family payment = $3,500
Therefore, Alvin's family will have to pay $3,500.
Jefferson stops by a fast-food restaurant for a $3.50 cheeseburger every day. If he only ate at home and eliminated this cost, how much could he save after 10 weeks?(1 point)
To calculate the amount Jefferson could save after 10 weeks by not buying the $3.50 cheeseburger every day, we first need to calculate the total cost of the cheeseburgers for 10 weeks.
Cost per week = cost per cheeseburger * number of days in a week
Cost per week = $3.50 * 7 days
Cost per week = $24.50
Total cost for 10 weeks = Cost per week * number of weeks
Total cost for 10 weeks = $24.50 * 10
Total cost for 10 weeks = $245
Therefore, by not buying the $3.50 cheeseburger every day for 10 weeks, Jefferson could save $245.
Cost per week = cost per cheeseburger * number of days in a week
Cost per week = $3.50 * 7 days
Cost per week = $24.50
Total cost for 10 weeks = Cost per week * number of weeks
Total cost for 10 weeks = $24.50 * 10
Total cost for 10 weeks = $245
Therefore, by not buying the $3.50 cheeseburger every day for 10 weeks, Jefferson could save $245.
Analyzing the situation for financial responsibility, what is the most immediate threat to your finances from playing online video games?
A: Downloading an expensive game
B: Spending too much time playing
C: Losing track of microtransactions while playing online
D: Neglecting your studies
A: Downloading an expensive game
B: Spending too much time playing
C: Losing track of microtransactions while playing online
D: Neglecting your studies
C: Losing track of microtransactions while playing online
Seth just graduated from college and has joined the workforce. His uncle tells him that he should open up a retirement savings account and contribute to it each month. Seth feels that because he does not plan to retire for another 40 years, there is no reason to start saving for it now. Explain to Seth why he should consider taking his uncle’s advice. (2 points)
Seth, while it may seem like retirement is far off in the future, starting to save for it now is actually a very smart decision. Here are a few reasons why you should consider taking your uncle's advice:
1. Compound interest: By starting to save for retirement early, you can take advantage of the power of compound interest. This means that your savings will not only grow from the contributions you make, but also from the interest they earn over time. The earlier you start saving, the more time your money has to grow through compounded returns.
2. Building a substantial nest egg: Saving for retirement over a longer period allows you to build a substantial nest egg that can support you during your retirement years. By contributing to a retirement savings account each month, you are consistently building up your savings over time, giving you a better chance of enjoying a comfortable and financially secure retirement.
3. Retirement uncertainties: While retirement may seem far off, it's important to consider that unexpected circumstances can arise that may prevent you from working until your desired retirement age. By saving for retirement now, you are creating a safety net for yourself, ensuring that you have financial resources in place in case of unforeseen events or changes in your career.
4. Peace of mind: Start saving for retirement now can give you peace of mind in the long run. Knowing that you have a growing retirement savings account can provide you with a sense of security, knowing that you are taking proactive steps to secure your financial future.
Overall, Seth, starting to save for retirement now is a smart financial decision. It allows you to take advantage of compound interest, build a substantial nest egg, prepare for uncertainties, and have peace of mind. It's never too early to start planning and saving for your future.
1. Compound interest: By starting to save for retirement early, you can take advantage of the power of compound interest. This means that your savings will not only grow from the contributions you make, but also from the interest they earn over time. The earlier you start saving, the more time your money has to grow through compounded returns.
2. Building a substantial nest egg: Saving for retirement over a longer period allows you to build a substantial nest egg that can support you during your retirement years. By contributing to a retirement savings account each month, you are consistently building up your savings over time, giving you a better chance of enjoying a comfortable and financially secure retirement.
3. Retirement uncertainties: While retirement may seem far off, it's important to consider that unexpected circumstances can arise that may prevent you from working until your desired retirement age. By saving for retirement now, you are creating a safety net for yourself, ensuring that you have financial resources in place in case of unforeseen events or changes in your career.
4. Peace of mind: Start saving for retirement now can give you peace of mind in the long run. Knowing that you have a growing retirement savings account can provide you with a sense of security, knowing that you are taking proactive steps to secure your financial future.
Overall, Seth, starting to save for retirement now is a smart financial decision. It allows you to take advantage of compound interest, build a substantial nest egg, prepare for uncertainties, and have peace of mind. It's never too early to start planning and saving for your future.
1 answer