Financial Math Questions and Answers
Grade A+ 2023
Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium
table, what is her annual premium for a 10 year policy? - -B. $1,202
-Sherita, age 37, wants to pay no more than $750 a year in life insurance. If the annual life
insurance premium rate (per $1000 of face value) is $3.96, what is the largest 15-year term
policy she can buy without spending more than $750 annually? - -A. $189,000
-Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may
take now and the premium for the same policy taken out at age 45. Using the table, find the
difference in total premium costs over 20 years for this policy at the two age levels. - -C. $12,875
-Maria, age 28, wants to pay no more than $300 a year in life insurance. What is the face value
of the largest 20-year term policy she can buy without spending more than $300 annually? - -B.
$158,000
-When shopping for life insurance, you should look for: - -A. A company with a low premium
rate and a good rating.
-DeShawn is 38 years old and is married with 3 children, ages 2, 4, and 6. He makes $45,000 a
year and is planning to retire when he turns 60. From the following three options, DeShawn
decides to buy the $900,000 20 year term policy. Given DeShawn's scenario, assess whether
DeShawn made a wise decision. - -C. DeShawn's current policy will cover his family for an
adequate period of time at his current salary.
-Because Bernard has some health issues, he must pay 15% more for life insurance. About how
much more annually will a $115,000 10-year term insurance at age 35 cost Bernard than
someone of the same age without health issues? - -D. $24
-Eva is 29 years old and has 2 children, ages 3 and 5. She makes $48,500 a year. Eva decides to
buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards.
To renew the policy the insurance company charges an extra 40% to her premium rate. Given the
options below, assess whether Eva made a wise decision. - -Not A. Eva would have been better
off selecting the 20-year term policy.
-Your children are 3 and 5 years old now, and you want an inexpensive policy that covers your
family at least until the youngest is 22. Based on the given information, what is the best policy to
buy? - -D. 20-year term policy
-Between permanent life insurance and term life insurance, which typically has the lower
premium and why? - -A. Term life insurance has the lower premium because term life insurance
,pays the face value to your beneficiary if you die within a certain set period of time, whereas
whole life insurance covers you your entire life.
-Jeremy is 29 years old and in good health. What is the annual premium for the cheapest policy
having a $90,000 face value that Jeremy can buy? - -D. $1,643
-Jacob wants to buy a $500,000 15-year term life policy, and the annual premium rate (per $1000
of face value) for his age group is $6.78. If Jacob lives until the end of the term of his policy,
how much will Jacob have paid in premiums overall? - -C. $50,850
-The two basic types of life insurance policies are: - -B. Term and Permanent Whole Life
-Because Aaron, age 32, is a smoker, he must pay more for life insurance. Given that Company
A charges 20% more for smokers, Company B charges 18% more for smokers, Company C
charge 25% more for smokers and Company D charges 15% more for smokers, Aaron decides to
buy his $250,000 policy from Company B. Which of the following statements is true? - -A.
Aaron is paying the smallest premium possible with Company B.
-If Yessenia wants to buy a $165,000 whole life policy, and the annual premium rate (per $1000
of face value) for her age group is $15.46, how much is Yessenia's monthly premium? - -C.
$212.57
-Lamar, age 43, wants to pay no more than $1,000 a year in life insurance. If the annual life
insurance premium rate (per $1000 of face value) is $12.59, what is the largest whole life policy
he can buy without spending more than $1,000 annually? - -D. $79,000
-Sarah, age 29, makes $45,000 a year and wants to buy a 15-year term policy that would replace
seven years of her salary. The annual premium rate (per $1000 of face value) for her age group is
$1.46. What is Sarah's premium, to the nearest dollar? - -A. $460
-After getting married, Joe, 32, and Melinda, 29, decide to take out life insurance policies. Joe
would like a 15-year term policy and Melinda would like a 20-year term policy. They each want
a $300,000 policy. How much can Joe and Melinda expect to pay in premiums the first year? - -
B. $2,484
-You're 35 years old now, and you want to purchase life insurance which will cover your spouse
for your lost income in the event of your death. You want this policy to last until what would be
your normal retirement age of 65. Based on the given information, what is the best policy to
buy? - -C. 30-year term policy
-Interest rate - -The interest rate is the fee charged by the bank for the use of the money when
taking out a loan. It is also the fee you are paid by the bank for letting the bank use your money.
-ATM fees - -ATM usage fees are the fees banks charge for the use of their Automated Teller
Machines (ATMs).
,-On his way out to meet a friend for lunch, David realized that his financial record was not up to
date. He notices that he forgot to record three transactions. The first transaction was on August
2nd in the amount of $12.32, another transaction on that same day in the amount or $52.34, and
finally a transaction on August 8th in the amount of $85.35. Determine David's balance carried
forward for the 8th of August using the table below and the information provided. - -$899.15
-Opening a savings can provide an individual many conveniences. List and briefly describe the
conveniences that are associated with opening a savings account. - -Savings accounts offer easy
access to your money in the event of an emergency, while your money is in a savings account, it
can earn interest, allowing your money to grow, and finally keeping your money in a savings
account means that your money is safe.
-Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters,
and plants. If the cost of the fish is $84.79, the filters usually cost $60.45 but Colin finds them on
sale for $44.75, and the cost of the plants is $18.66, determine how much of Colin's $488.85
savings will be used to set up his aquarium. - -$148.20
-Kim has worked in the tech industry for some time and would like to start consulting. In
opening her new business, she will need equipment. She needs to purchase 3 laptops, 2 desktop
computers, and a fax machine. Each laptop costs $546.78, each desktop computer costs
$1,255.99, and the cost of the fax machine is $125.99. She currently has $3,500 in her savings
account.
Determine if Kim has enough in her savings account to cover the expenses of her new company,
and if she doesn't have enough, determine the amount needed to cover the cost. - -After
expenses, Kim will need an additional $778.31 to start her company.
-Savings accounts are a reliable way to store money for the future. - -T
-What are some of the factors to take into consideration when opening a savings account and
what information do you need to provide? - -The factors we might take into consideration when
opening a savings account is how accessible are the banks, the types of services the bank
provides, customer services, and what types of rates the bank provides. When opening a savings
account, we need to provide legal documentation proving you are who you say you are and to fill
out a application.
-Alissa would like to make a deposit into her savings account. She filled out a deposit ticket and
handed it to the teller at her bank. The teller apologizes to Alissa and explains that she cannot
accept the deposit ticket in its current form. Determine what, if anything, Alissa will have to
change in order for her deposit ticket to be accepted. - -The total is calculated incorrectly
-Annie wants to make a deposit into her savings account. She is depositing 3 checks, one for
$50.32, another for $324.89, and finally one for $753.15. She would like to receive $137.82 in
cash after the deposit. Calculate the amount that she will be depositing into her savings account. -
-$990.54
, -Pablo wants to start a savings account and apply for a vehicle loan. He's not sure which bank he
should open the savings account with and which bank he should apply for the vehicle loan. He
wants the most return on his money in savings, but he doesn't want a high rate on his vehicle
loan. Given this information and the tables below, determine with which bank Pablo should open
his savings account and with which bank he should apply for a vehicle loan. - -Bank B for the car
loan and Bank B for the savings account
-Briefly describe how maintaining a savings account can contribute to your overall financial
well-being. - -Having a savings account can contribute to your overall financial well-being by
providing you with the security to expect the unexpected, allow you to invest when opportunities
arise, provide you with the means to fulfill your dreams, and to give back to your community.
-Having a savings account can contribute to a person's overall financial well-being. Which one of
the following is NOT a benefit of maintaining a savings account? - -Having a savings account
gives individuals the ability to borrow money from members in the community
-Which of the following would be a good reason to place your money into a savings account? - -
A savings account earns interest
-Paul has decided to set up his own recording studio. He needs to purchase four speakers at $435
apiece and two mixers at $772 apiece. He also needs to soundproof a room, which will cost him
$838. If Paul has $4,500 in his savings account, how close can he come to setting up his studio? -
-Paul can set up his studio and have $378 left over.
-Ruby wants to start her own business taking photographs. She already has her own camera, but
needs to purchase lights, a photo printer, and photo paper. If the cost of the photo printer is
$251.99, the cost of lighting is $150.00, and the cost for 100 sheets of photo paper is $30.98,
determine how much of her savings will be used to start her company, given that she has $840.32
in savings. - -$432.97
-Roger wants to make a deposit into his savings account. He is depositing 2 checks, one for
$125.62 and the other for $532.50. He would like to receive $40.00 in cash after the deposit.
Calculate the amount that he will be depositing into his savings account. - -$618.12
-What does it mean for a savings account to have a minimum balance? - -If you do not keep at
least that much money in the account, you will be assessed fees.
-Unit rate - -A unit rate describes how many units of the first type of quantity corresponds to one
unit of the second type of quantity.
-Unit price - -The unit price of an item is the cost for each unit.
-Comparison shopping - -Comparison shopping is the process of shopping for bargains by
comparing the prices of competing brands or stores.
Grade A+ 2023
Jade wants to buy a $200,000 term life insurance policy. She is 34 years old. Using the premium
table, what is her annual premium for a 10 year policy? - -B. $1,202
-Sherita, age 37, wants to pay no more than $750 a year in life insurance. If the annual life
insurance premium rate (per $1000 of face value) is $3.96, what is the largest 15-year term
policy she can buy without spending more than $750 annually? - -A. $189,000
-Angelo, age 40, is comparing the premium for a $125,000 whole life insurance policy he may
take now and the premium for the same policy taken out at age 45. Using the table, find the
difference in total premium costs over 20 years for this policy at the two age levels. - -C. $12,875
-Maria, age 28, wants to pay no more than $300 a year in life insurance. What is the face value
of the largest 20-year term policy she can buy without spending more than $300 annually? - -B.
$158,000
-When shopping for life insurance, you should look for: - -A. A company with a low premium
rate and a good rating.
-DeShawn is 38 years old and is married with 3 children, ages 2, 4, and 6. He makes $45,000 a
year and is planning to retire when he turns 60. From the following three options, DeShawn
decides to buy the $900,000 20 year term policy. Given DeShawn's scenario, assess whether
DeShawn made a wise decision. - -C. DeShawn's current policy will cover his family for an
adequate period of time at his current salary.
-Because Bernard has some health issues, he must pay 15% more for life insurance. About how
much more annually will a $115,000 10-year term insurance at age 35 cost Bernard than
someone of the same age without health issues? - -D. $24
-Eva is 29 years old and has 2 children, ages 3 and 5. She makes $48,500 a year. Eva decides to
buy a $400,000 10-year term policy and then renew the policy for another ten years afterwards.
To renew the policy the insurance company charges an extra 40% to her premium rate. Given the
options below, assess whether Eva made a wise decision. - -Not A. Eva would have been better
off selecting the 20-year term policy.
-Your children are 3 and 5 years old now, and you want an inexpensive policy that covers your
family at least until the youngest is 22. Based on the given information, what is the best policy to
buy? - -D. 20-year term policy
-Between permanent life insurance and term life insurance, which typically has the lower
premium and why? - -A. Term life insurance has the lower premium because term life insurance
,pays the face value to your beneficiary if you die within a certain set period of time, whereas
whole life insurance covers you your entire life.
-Jeremy is 29 years old and in good health. What is the annual premium for the cheapest policy
having a $90,000 face value that Jeremy can buy? - -D. $1,643
-Jacob wants to buy a $500,000 15-year term life policy, and the annual premium rate (per $1000
of face value) for his age group is $6.78. If Jacob lives until the end of the term of his policy,
how much will Jacob have paid in premiums overall? - -C. $50,850
-The two basic types of life insurance policies are: - -B. Term and Permanent Whole Life
-Because Aaron, age 32, is a smoker, he must pay more for life insurance. Given that Company
A charges 20% more for smokers, Company B charges 18% more for smokers, Company C
charge 25% more for smokers and Company D charges 15% more for smokers, Aaron decides to
buy his $250,000 policy from Company B. Which of the following statements is true? - -A.
Aaron is paying the smallest premium possible with Company B.
-If Yessenia wants to buy a $165,000 whole life policy, and the annual premium rate (per $1000
of face value) for her age group is $15.46, how much is Yessenia's monthly premium? - -C.
$212.57
-Lamar, age 43, wants to pay no more than $1,000 a year in life insurance. If the annual life
insurance premium rate (per $1000 of face value) is $12.59, what is the largest whole life policy
he can buy without spending more than $1,000 annually? - -D. $79,000
-Sarah, age 29, makes $45,000 a year and wants to buy a 15-year term policy that would replace
seven years of her salary. The annual premium rate (per $1000 of face value) for her age group is
$1.46. What is Sarah's premium, to the nearest dollar? - -A. $460
-After getting married, Joe, 32, and Melinda, 29, decide to take out life insurance policies. Joe
would like a 15-year term policy and Melinda would like a 20-year term policy. They each want
a $300,000 policy. How much can Joe and Melinda expect to pay in premiums the first year? - -
B. $2,484
-You're 35 years old now, and you want to purchase life insurance which will cover your spouse
for your lost income in the event of your death. You want this policy to last until what would be
your normal retirement age of 65. Based on the given information, what is the best policy to
buy? - -C. 30-year term policy
-Interest rate - -The interest rate is the fee charged by the bank for the use of the money when
taking out a loan. It is also the fee you are paid by the bank for letting the bank use your money.
-ATM fees - -ATM usage fees are the fees banks charge for the use of their Automated Teller
Machines (ATMs).
,-On his way out to meet a friend for lunch, David realized that his financial record was not up to
date. He notices that he forgot to record three transactions. The first transaction was on August
2nd in the amount of $12.32, another transaction on that same day in the amount or $52.34, and
finally a transaction on August 8th in the amount of $85.35. Determine David's balance carried
forward for the 8th of August using the table below and the information provided. - -$899.15
-Opening a savings can provide an individual many conveniences. List and briefly describe the
conveniences that are associated with opening a savings account. - -Savings accounts offer easy
access to your money in the event of an emergency, while your money is in a savings account, it
can earn interest, allowing your money to grow, and finally keeping your money in a savings
account means that your money is safe.
-Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters,
and plants. If the cost of the fish is $84.79, the filters usually cost $60.45 but Colin finds them on
sale for $44.75, and the cost of the plants is $18.66, determine how much of Colin's $488.85
savings will be used to set up his aquarium. - -$148.20
-Kim has worked in the tech industry for some time and would like to start consulting. In
opening her new business, she will need equipment. She needs to purchase 3 laptops, 2 desktop
computers, and a fax machine. Each laptop costs $546.78, each desktop computer costs
$1,255.99, and the cost of the fax machine is $125.99. She currently has $3,500 in her savings
account.
Determine if Kim has enough in her savings account to cover the expenses of her new company,
and if she doesn't have enough, determine the amount needed to cover the cost. - -After
expenses, Kim will need an additional $778.31 to start her company.
-Savings accounts are a reliable way to store money for the future. - -T
-What are some of the factors to take into consideration when opening a savings account and
what information do you need to provide? - -The factors we might take into consideration when
opening a savings account is how accessible are the banks, the types of services the bank
provides, customer services, and what types of rates the bank provides. When opening a savings
account, we need to provide legal documentation proving you are who you say you are and to fill
out a application.
-Alissa would like to make a deposit into her savings account. She filled out a deposit ticket and
handed it to the teller at her bank. The teller apologizes to Alissa and explains that she cannot
accept the deposit ticket in its current form. Determine what, if anything, Alissa will have to
change in order for her deposit ticket to be accepted. - -The total is calculated incorrectly
-Annie wants to make a deposit into her savings account. She is depositing 3 checks, one for
$50.32, another for $324.89, and finally one for $753.15. She would like to receive $137.82 in
cash after the deposit. Calculate the amount that she will be depositing into her savings account. -
-$990.54
, -Pablo wants to start a savings account and apply for a vehicle loan. He's not sure which bank he
should open the savings account with and which bank he should apply for the vehicle loan. He
wants the most return on his money in savings, but he doesn't want a high rate on his vehicle
loan. Given this information and the tables below, determine with which bank Pablo should open
his savings account and with which bank he should apply for a vehicle loan. - -Bank B for the car
loan and Bank B for the savings account
-Briefly describe how maintaining a savings account can contribute to your overall financial
well-being. - -Having a savings account can contribute to your overall financial well-being by
providing you with the security to expect the unexpected, allow you to invest when opportunities
arise, provide you with the means to fulfill your dreams, and to give back to your community.
-Having a savings account can contribute to a person's overall financial well-being. Which one of
the following is NOT a benefit of maintaining a savings account? - -Having a savings account
gives individuals the ability to borrow money from members in the community
-Which of the following would be a good reason to place your money into a savings account? - -
A savings account earns interest
-Paul has decided to set up his own recording studio. He needs to purchase four speakers at $435
apiece and two mixers at $772 apiece. He also needs to soundproof a room, which will cost him
$838. If Paul has $4,500 in his savings account, how close can he come to setting up his studio? -
-Paul can set up his studio and have $378 left over.
-Ruby wants to start her own business taking photographs. She already has her own camera, but
needs to purchase lights, a photo printer, and photo paper. If the cost of the photo printer is
$251.99, the cost of lighting is $150.00, and the cost for 100 sheets of photo paper is $30.98,
determine how much of her savings will be used to start her company, given that she has $840.32
in savings. - -$432.97
-Roger wants to make a deposit into his savings account. He is depositing 2 checks, one for
$125.62 and the other for $532.50. He would like to receive $40.00 in cash after the deposit.
Calculate the amount that he will be depositing into his savings account. - -$618.12
-What does it mean for a savings account to have a minimum balance? - -If you do not keep at
least that much money in the account, you will be assessed fees.
-Unit rate - -A unit rate describes how many units of the first type of quantity corresponds to one
unit of the second type of quantity.
-Unit price - -The unit price of an item is the cost for each unit.
-Comparison shopping - -Comparison shopping is the process of shopping for bargains by
comparing the prices of competing brands or stores.
