Deck 11: Prepare a Budget

Question 1

Jane wants to keep her debt-to-income ratio at the recommended 15% or lower.The sum of Jane's assets is $12,000 and the sum of her liabilities is $2,300,so she easily falls within the recommended amount.

Answer 1

False

Question 2

Tamika created this pie chart of her entertainment budget.According to the chart,if Tamika's budget is $125 for entertainment,$36 is budgeted for shopping.
​

Answer 2

False

Question 3

Which is NOT an example of a budget?

A) Frequency budget plan
B) Envelope accounting system
C) Cash flow analysis
D) Year-long expense budget plan

Answer 3

Cash flow analysis

Question 4

Last month,Marybeth was charged $112 for 945 kWh of electricity.How much did the company charge her per kWh,to the nearest cent?

A) $0.06
B) $0.08
C) $0.10
D) $0.12

Question 5

A nursery located in Florida uses a water meter to measure its water usage in CCF.It is charged $0.36 per CCF of water.Its last meter reading was 123,692 and their present reading is 127,394.For this usage,the nursery was charged $332.72.

Question 6

The Yamamotos use natural gas to heat their home.Last year they paid $14.50 per thousand cubic feet (Mcf).The price increased 20% this year,so they are now paying $17.4 per Mcf.

Question 7

A cash flow analysis is a type of budget that helps people plan for future spending and savings.

Question 8

Ralph has budgeted $175 for entertainment.He uses this money to go out on dates for $35 or to go out with his friends for $15.Which budget line equation represents the situation?

A) 35x - 15y = 175
B) 35x + 15y = 175
C) (3x + 5y)= 175
D) 175 - (35x + 15y)

Question 9

A spreadsheet is an example of an electronic matrix.

Question 10

Some examples of variable expenses are utility bills and entertainment costs.

Question 11

Net worth is the difference between a person's assets and their liabilities.Net worth can be a positive number or a negative number.

Question 12

Andy has a 40-hour per week job and leaves a certain radio on all day while he works.This radio requires 125 watts of electricity.At a price per kilowatt-hour of $0.10,it costs $0.10 to play the radio all day.

Question 13

Mrs.Watanabe is choosing a cell phone plan.One plan costs $35 a month and includes 450 minutes.The charge for each minute over 450 is $0.16.The company also offers an unlimited calling plan with a $55 monthly charge.At how many minutes would the cost of the two plans be the same

A) 575 minutes
B) 566 minutes
C) 552 minutes
D) 525 minutes

Question 14

Manuel works for the water company as a meter reader.The meter below is the Jansen's water meter.What is the reading,in CCF,on the meter shown?
​

Question 15

Randy and Jake are brothers living in the same city in homes that are about the same age and size.One brother has recently purchased an energy-efficient gas furnace while the other brother relies on an older,less efficient,oil furnace.By comparing the lines of the graph,it appears that Randy has the more energy-efficient furnace.
​

Question 16

Mrs.Kalbrisa budgets $125 a month for entertainment.She has allocated $10 for the movies and $25 for dining out.She constructs the following budget line graph to represent the situation,where x is the number of movies and y is the number of times she dines out in a month.What combination does NOT fall within her budgeted amount for entertainment? ​ ​

A) (5,3)
B) (3,3)
C) (1,4)
D) (7,5)

Question 17

Which statement is NOT part of a debt-reduction plan?

A) Lower debts with the highest interest rates.
B) Slow or eliminate credit card spending
C) Only pay the minimum amount when possible.
D) Use an online debt management calculator.

Question 18

Jose and Lisa Sanchez created a spreadsheet to chart their income and expenses for the month.The sum of their fixed expenses is in cell B10,the sum of their variable expenses is in cell B23,and the sum of their pro-rated non-monthly expenses is in cell B40.What formula should be entered in the spreadsheet cell that contains their total expenses?

A) =SUM(B10-B40)
B) =SUM(B10:B23:B40)
C) =SUM(B10*B23*B40)
D) =SUM(B10+B23+B40)

Question 19

Sarah lives in a part of the country where there are droughts.Consequently,the water company increases the cost per CCF of water based on usage.The piecewise function shows the rate schedule. If Sarah used 210 CCF of water last month,what was she charged?

A) $37.80
B) $38.80
C) $39.80
D) $47.00

Question 20

A single woman uses an online cash flow calculator which reveals a cash flow of -203.What does this mean?

A) She is earning more than she is spending
B) She is spending more than she is earning.
C) She has $203 extra in her budget each month.
D) She has $203 more she can spend.

Question 21

William wants to keep his debt-to-income ratio at the recommended 15% or lower.William's house payment is $1,012.84 and his car payment is $579.13.He also has student loans he is repaying in the amount of $250.00 per month.William has eliminated credit cards spending except for budgeted items and continues to pay $300 per month to eliminate his credit card debt.He is looking for a new job.What should his new annual salary goal be in order to keep his debt-to-income ratio at the recommended 15%?

Question 22

Richard and Samantha are charting their monthly cash flow.They have some expenses like car repairs and vacations that are not paid each month.How can they account for these non-monthly expenses?

Question 23

The Lisbons' new heat pump cost $4,500.They bought it to replace their old furnace and air conditioner which cost about $2,800 a year to run.The heat pump will save them approximately 39% a year.In how many years will the heat pump pay for itself? Round to the nearest tenth.

Question 24

The Grangers manage their money by using a monthly budget.Mr.Granger's semi-monthly salary is $2,800,and Mrs.Granger's biweekly salary is $4,150.Mr.Granger's net income of approximately 64% of his salary is deposited in their savings account each paycheck,whereas Mrs.Granger sees 66% of her salary deposited into their savings account.How much money should the Grangers transfer from their savings to checking to cover their monthly expenses if their goal is to leave 12% of budgeted income in savings and an additional 36% of budgeted income to cover non-monthly expenses (i.e. ,water,insurance,property taxes,vacations,Christmas,charitable giving,home maintenance,etc. )?

Question 25

Draco recently purchased a new Surface Book for $2,300.The Surface Book draws 24W of electricity,and Draco leaves it on except when sleeping (approximately 16 hours per day).His current electric costs are $0.1233/kWh.Draco purchased a 4-year replacement plan for $80 per year.What is the average yearly cost to own and operate this computer if he intends to use it for the next 4 years?

Question 26

Katelyn is shopping for a cellular phone service.Trenton Bell charges a monthly fee of $40 for up to 500 minutes.For every minute over 500,it charges an additional $0.18.Write a piecewise function to represent the cost of this plan.

Question 27

The Smythes believe their water meter is not working properly and started keeping track of their meter readings.Mr.Smythe thinks that if he can calculate the amount of water he was charged for using the provider's published piecewise function for water costs and compare it to his own reading,he will know wether meter is working correctly.If their total bill last month was $45.96,how many CCF of water should they have used?

Question 28

Roderick has an Internet service that charges by the hour.This piecewise function shows the cost of the Internet service based on the number of hours that Roderick uses the Internet.Last month,Roderick used the Internet for 7.5 hours.What was he charged?

Question 29

Xavier's monthly assets and liabilities are in the table below.What is Xavier's debt-to-income ratio?

Question 30

Construct a bar graph using the information below on transportation-related costs.

Question 31

The Potters received a phone call from New Energy informing them of their new electric rates of $0.048 per kWh.That sounded good,but Harry wanted to see how that compared to his current rate before making a decision.After looking at his bills for the past year,it was obvious that the Potters used 15,719 kWh during the year and paid $828.38 in electric charges.What is the net change percentage between their current rate and the rate being offered? Should the Potters take advantage of the offer from New Energy?

Question 32

Michelle's last electric bill listed a previous reading of 17,934 kWh.This month,the electric meter reading is 18,796 kWh.If the electric company charges $0.09 per kWh,what is the charge for usage?

Question 33

The Dursleys' heat pump stopped working on the hottest day of the year.The old one wasn't very efficient and Mr.Dursley decided to buy an energy efficient heat pump to save on energy costs.The old heat pump used 15,000 watts of energy and his current electric costs are $0.1233/kWh.The replacement model he is considering uses 11,000 watts of energy to provide the same level of heating and cooling.Mr Dursley's research for his area of the country indicates that a heat pump is used,on average,4 hours per day.If the new heat pump costs $5,000 and he is eligible for a 15% energy tax credit in the year he has it installed,how long will it take for the energy costs to pay for the new heat pump?

Question 34

A certain refrigerator requires 170 watts of electricity when it is running.It typically runs about 20 minutes per hour.How much does it cost to run this refrigerator for one year if the cost per kWh is $0.11?

Question 35

Last year,Maria spent $2,388 for natural gas.This year,she decided to use balance billing.What will her monthly payment be this year?

Question 36

Use the pie chart of health-related and personal care items.If the Lee family has $800 per month budgeted for heath-related items,how much do they have budgeted for each of the four categories below?
​