MP Auto
You hit a fire hydrant. Which coverage will pay the city to repair the fire hydrant?
Property Damage
In college, you live in a house with 3 friends. Who is responsible for obtaining renters insurance?
Every tenant.
The ability to pay the loan back
capacity
Which tax system would be an example of a progressive tax system?
Federal Income Tax
Which type of retirement account would your employer help contribute to?
401k
You get into a car accident with another car. You are at fault. Which coverage would you use to repair your car?
Collision
Guaranteeing a loan for the original borrower.
Co-signer
What are three things used to calculate your credit rating?
credit history
likelihood of paying off debt
existing debt/income
What is most likely the consumer response to higher interest rates?
Less spending
What is the relationship between risk and reward?
Higher risk = Higher reward
Low risk = Low reward
Which coverage is required by law in the state of IL?
Automobile property and bodily injury liability insurance.
How much of your net income should be budgeted for housing?
30-35%
What 2 rights do you have as a consumer concerning your credit?
credit report
corrections to incorrect information
What is 1 reason the Social Security fund is diminishing?
Baby Boomers - higher population retiring
What is a dividend?
The payout of profit from a stock to a stockholder. Not always guaranteed.
How does the term of the loan affect the monthly payment?
Longer the term, smaller the monthly payments
What are 3 benefits of renting?
ability to move/relocate
less maintenance
no down payment
How do you avoid paying interest on a credit card?
Pay the balance in full each month.
Taxable Income Single Married/Jointly
61,000-61,050 - 12,185 - 8,114
61,050-61,100 - 12,198 - 8,126
61,100-61,150 - 12,210 - 8,139
How much tax would someone owe if their income was $61,079 and they were filing single?
$12,198
How should you save for retirement if your employer does not offer a 401k?
Roth IRA
Besides the loan principle, what else is calculated into the auto loan? (3 things)
down payment, APR, and sales tax
What is a security deposit?
money paid by a renter that a landlord holds to cover the cost of damages to the rented property above and beyond normal wear and tear.
The Truth in Lending Act requires lenders to...
Which type of tax is sales tax?
Regressive
Why should you start investing at an early age?
Take advantage of compound interest.