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. $2,300
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. $1,617
3. 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. $1,345.80
c. $1,750.30
b. $1,450.00
d. $1,825.60
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. $1,023.30
c. $1,090.70
b. $1,056.60
d. $1,230.50
5. Molly Pierce’s annual base premium is $1,175.80 and her driver-rating factor is 1.5. What is her annual
premium?
a. $783.86
c. $1,197.70
b. $1,177.30
d. $1,763.70
6. 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. $120,000
7. 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. $185,000
8. 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
b. $47,250
c. $52,300
d. $56,400
9. 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. $82,800
10. 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 10.1. Use this table with the question(s) below, as needed.
Monthly Payment for a $1,000 Loan
Length of Loan in Years
Interest
Rate
20
25
30
6.00%
$7.16
$6.44
$6.00
6.50%
7.46
6.75
6.32
7.00%
7.75
7.07
6.65
7.50%
8.06
7.39
6.99
8.00%
8.36
7.72
7.34
8.50%
8.68
8.05
7.69
11. Use Figure 10.1. 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. $1,053.90
c. $1,229.93
b. $1,198.87
d. $1,867.00
12. Use Figure 10.1. 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. $597.25
c. $652.30
b. $609.50
d. $680.85
13. Use Figure 10.1. 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. $187,560
14. Use Figure 10.1. 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. $172,260
15. 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
Borrower’s Credit check
Points
Appraisal Fee
Title Search
Title Insurance
Attorney Fee
Documentation stamp
Processing fee
a. $4,235
b. $5,765
$
25
65
2% of Mortgage
350
215
450
400
0.30% of Mortgage
1.25% of Mortgage
c. $6,120
d. $7,340
16. 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. $97,238
17. 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?
Credit report
Loan origination fee: 2.0% of mortgage
Abstract of title
Attorney fee
Documentation stamp fee: 0.3% of mortgage
Processing fee: 1.10% of mortgage
a. $35,019
b. $39,019
$
70
100
275
c. $39,699
d. $40,175
18. 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. $125,000
19. 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. $34,840
20. Amanda Wolpert’s home in Richmond, Virginia, has an assessed value of $74,200. The tax rate where she
lives is 25.13 mills. What is her annual real estate tax?
a. $1,674.32
c. $1,957.26
b. $1,864.65
d. $1,964.38
21. 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. $83,960
22. 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
b. $49,970
c. $50,760
d. $51,276
23. 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%
Loss of use
Personal property
a. $55,800
b. $58,200
25%
45%
c. $66,900
d. $67,500
24. 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 10.3. 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
Coverage
$ 40,000
45,000
50,000
60,000
70,000
80,000
90,000
100,000
120,000
150,000
200,000
250,000
300,000
400,000
500,000
Brick / Masonry Veneer
1-6 7-8
9
10
11
$ 166 $ 170 $ 225 $ 237 $ 270
173
178
233 244
280
178
183
241 254
290
191
196
259 273
313
213
216
285 299
343
241
248
328 343
394
268
276
365 384
441
298
307
407 426
490
354
364
484 508
584
459
471
625 657
755
616
633
841 884 1,017
737
754
961 1,021 1,167
879
901 1,147 1,218 1,394
1,021 1,045 1,331 1,413 1,617
1,309 1,340 1,707 1,812 2,074
1-6
$ 178
187
190
205
225
257
289
320
381
493
662
780
931
1,067
1,385
Wood Frame
7-8
9
10
$ 183 $ 237 $ 248
191
248
260
195
254
265
211
273
287
231
299
315
265
343
363
296
384
403
329
426
449
391
508
534
506
657
692
680
884
931
798 1,021 1,086
953 1,218 1,295
1,105 1,413 1,504
1,418 1,812 1,929
11
$ 285
298
304
328
360
415
464
515
614
794
1,070
1,243
1,483
1,723
2,209
25. Use Figure 10.3. 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. $673
26. Use Figure 10.3. 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
27. Use Figure 10.3. 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. $737
28. Use Figure 10.3. 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. $563
29. Cesar Santiago recorded his housing expenses for the month of September as follows: $575.16 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. $563.00
c. $803.10
b. $783.10
d. $912.07
30. Craig Allen is considering purchasing a new home. He estimates the following monthly housing expenses:
$972.45 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. $1,249.69
c. $1,985.24
b. $1,945.25
d. $2,458.61
31. 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. $1,086.40
c. $1,527.98
b. $1,125.65
d. $1,567.20
32. 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. $1,257.52
c. $1,297.20
b. $1,258.14
d. $2,006.00
33. 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. $58.22
34. 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. $62.94
35. 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
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
Annual Deductible
Hospital Charges
Single
Family
----
Home Health Care
First 50 visits
Network
$275
$750
Non-Network*
$ 400
$1,600
80%**
100%**
70%**
85%**
Over 50
Co-insurance/Co-payment
Physician visit
Specialist
Physical Therapy
First 15 visits
80%**
$ 15
$ 30
$
$
85%**
18
35
$ 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. $3,819.60
b. $4,149.60
c. $4,399.60
d. $5,389.60
37. 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
Annual Deductible
Hospital Charges
Single
Family
----
Home Health Care
First 50 visits
Network
$375
$800
Non-Network*
$ 500
$1,750
85%**
100%**
65%**
90%**
Over 50
Co-insurance/Co-payment
Physician visit
Specialist
90%**
$ 10
$ 25
$
$
90%**
12
30
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. $3,504.55
b. $3,854.55
c. $4,554.55
d. $4,679.00
38. 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
Annual Deductible
Hospital Charges
Home Health Care
Network
$ 275
$ 750
Single
Family
----
Non-Network*
$ 400
$1,600
80%**
100%**
First 50 visits
70%**
85%**
Over 50
Co-insurance/Co-payment
Physician visit
Specialist
Physical Therapy
First 15 visits
80%**
$ 15
$ 30
$
$
85%**
18
35
$ 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. $7,142.50
b. $7,249.00
c. $7,450.25
d. $7,775.50
39. 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?
Health Care Benefits Schedule
Annual Deductible
Hospital Charges
Single
Family
----
Home Health Care
First 50 visits
Network
$200
$600
Non-Network*
$ 300
$1,200
60%**
100%**
75%**
95%**
Over 50
Co-insurance/Co-payment
Physician visit
Specialist
Physical Therapy
First 15 visits
90%**
$ 20
$ 25
$
$
95%**
22
40
$ 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
b. $5,000
c. $6,000
d. $7,000
40. 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. $125.00
c. $235.45
b. $156.22
d. $326.88
41. 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. $241.52
c. $248.62
b. $243.50
d. $248.90
Figure 11.1. Annual Premiums per $1,000 of Life Insurance
Annual Premiums per $1,000 of Life Insurance: 5-Year Term*
Age
Male
Female
18-30
$ 3.21
$ 2.77
35
3.51
2.98
40
4.25
3.47
45
5.42
4.60
50
7.59
6.27
55
11.45
8.58
60
17.19
12.62
* Minimum amount is $50,000
42. Use Figure 11.1. 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. $311.09
c. $379.50
b. $325.40
d. $390.75
43. Use Figure 11.1. 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. $1,230
44. 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. $280
45. 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. $173
46. 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
25
30
35
40
45
50
55
$ 8.00
9.50
11.75
15.00
19.50
25.50
34.00
46.50
a. $432.87
b. $465.90
$ 6.35
7.40
9.15
11.60
14.40
18.65
24.35
32.35
c. $563.80
d. $587.50
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.
Personal Finance Test Review 6
Answer Section
MULTIPLE CHOICE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
9.4
9.4
9.4
9.4
9.4
10.1
10.1
10.1
10.1
10.2
10.2
10.2
10.2
10.2
10.3
10.3
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
10.3
10.5
10.5
10.5
10.6
10.6
10.6
10.7
10.7
10.7
10.7
10.8
10.8
11.1
11.1
11.1
11.1
11.1
11.2
11.2
11.1
11.2
11.3
41.
42.
43.
44.
45.
46.
47.
48.
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
OBJ:
11.3
11.3
11.3
11.3
11.3
11.3
11.3
11.4
COMPLETION
49. OBJ: 11.2
50. OBJ: 11.3