Questions from Personal Finance

Q: How can your post-high school education decisions affect your wealth

How can your post-high school education decisions affect your wealth?

Q: Savings Rate. If Angela is saving $380 per month,

Savings Rate. If Angela is saving $380 per month, what is her savings rate (i.e., savings as a percentage of disposable income)?

Q: IRA Contributions. Hareem is single and earned $104,300

IRA Contributions. Hareem is single and earned $104,300 in taxable income. He contributed $4,200 to an IRA during the year. How much did Hareem’s IRA contribution lower his tax liability?

Q: Recall that the Sampsons would like to save a total of $

Recall that the Sampsons would like to save a total of $1,000 per month. They notice that their local bank offers the certificate of deposit (CD) rates listed in the following table; they now need to...

Q: The Sampsons have just started saving $800 per month. This

The Sampsons have just started saving $800 per month. This money will be placed in CDs every month, which they chose in Chapter 5. These funds, earmarked for a down payment on a car and their children...

Q: The Sampsons’ credit card has a credit limit of $10,

The Sampsons’ credit card has a credit limit of $10,000. They have just received a letter from the credit card company offering to increase their credit limit to $20,000. The Sampsons have also read s...

Q: This month, the Sampsons increased their savings by $3,

This month, the Sampsons increased their savings by $3,000 because they paid most of their expenses with a credit card. However, now their credit card has a balance of about $2,000. They will likely e...

Q: Recall from the previous chapter that the Sampsons had savings of $

Recall from the previous chapter that the Sampsons had savings of $3,000 and credit card debt of $2,000. Assume that they have now paid off their credit card debt and have also accumulated total savin...

Q: When the Sampsons purchased a home, they obtained a thirty-

When the Sampsons purchased a home, they obtained a thirty-year mortgage with a fixed interest rate of 6%. Their monthly mortgage payment (excluding property taxes and insurance) is about $780 per mon...

Q: As the next step in reviewing their finances, the Sampsons are

As the next step in reviewing their finances, the Sampsons are assessing their insurance needs related to their vehicles and home. They indicated the amount of money they spend on insurance on their p...