For questions 1 to 6, select the best answer. 1. What bi-weekly deposit is needed to...

 

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For questions 1 to 6, select the best answer. 1. What bi-weekly deposit is needed to save $7800 in three years (assume no interest is earned)? - (B3) A $25 B $75 C $100 D $300 2. Which situation will result in a previously balanced budget becoming unbalanced? - (B3) A One expense increases so another expense is decreased. B Income increases so expenses are decreased. C One expense increases so another expense is increased. D Income increases so expenses are increased. 3. At the end of each month, Doug deposits $25 into an account that pays 3.45%, compounded monthly. What is the value of Doug's account after two years? - (B3) A $604.60 B $301.10 C $602.29 D $620.26 4. Amy's gross income is $34 000 per year. Her net income is 85% of this amount. Monthly rent should not exceed one week's net income. What is the maximum rent Amy can afford? - - (B2) A $751.92 B $555.77 C $653.85 D $2633.33 5. Which is not a variable expense? - (B3) A car repairs B home insurance payments C weekly grocery bills D monthly long distance telephone charges 6. Which set of expenses would be paid by the tenant of an apartment? (B3) A mortgage, gasoline, natural gas B natural gas, common fees, groceries C groceries, electricity, rent D property taxes, electricity, natural gas PART B: FULL SOLUTION: For the following questions, show your all work in the space provided 7. Jasmine owns a three-bedroom semi-detached house. She makes weekly mortgage payments of $714 and quarterly property tax payments of $542. She pays $42 per month for home insurance, $180 every two months for electricity, $89 per month for natural gas, and $95 every two months for water. How much does Jasmine spend on accommodations in one year? (4 marks) (B2) 8. Linh has moved to a new city. She is renting a one-bedroom apartment for $800 plus electricity. The local electricity company requires a $100 deposit for new customers along with a $70 connection fee. Her landlord requires her to pay first and last months' rent prior to moving in. (4 marks) - (B2) a) Calculate the total amount that Linh must pay prior to moving in. b) What other expenses might Linh have to pay before moving in? 9. Last year Carl's gross income was $54 000. a) Using the deductions calculator in this unit in activity 5, complete the table below. (3 marks) - (B2) Gross Salary Total Taxable Income Federal Tax Provincial Tax CPP Total Deductions Net Pay Earnings Deductions b) From the table, calculate Carl's weekly net income. (1 mark - B2) c) The average rent for a one-bedroom apartment is his town is $1150 per month. The average rent for a two-bedroom apartment is $1500 per month. Can Carl afford to rent a one-bedroom apartment on his own or does he need to share a two-bedroom apartment with a roommate? Explain. Include appropriate gross debt service (GDS) ratio calculations (see activity 4) in your explanation. (3 marks) - (B2) For questions 1 to 6, select the best answer. 1. What bi-weekly deposit is needed to save $7800 in three years (assume no interest is earned)? - (B3) A $25 B $75 C $100 D $300 2. Which situation will result in a previously balanced budget becoming unbalanced? - (B3) A One expense increases so another expense is decreased. B Income increases so expenses are decreased. C One expense increases so another expense is increased. D Income increases so expenses are increased. 3. At the end of each month, Doug deposits $25 into an account that pays 3.45%, compounded monthly. What is the value of Doug's account after two years? - (B3) A $604.60 B $301.10 C $602.29 D $620.26 4. Amy's gross income is $34 000 per year. Her net income is 85% of this amount. Monthly rent should not exceed one week's net income. What is the maximum rent Amy can afford? - - (B2) A $751.92 B $555.77 C $653.85 D $2633.33 5. Which is not a variable expense? - (B3) A car repairs B home insurance payments C weekly grocery bills D monthly long distance telephone charges 6. Which set of expenses would be paid by the tenant of an apartment? (B3) A mortgage, gasoline, natural gas B natural gas, common fees, groceries C groceries, electricity, rent D property taxes, electricity, natural gas PART B: FULL SOLUTION: For the following questions, show your all work in the space provided 7. Jasmine owns a three-bedroom semi-detached house. She makes weekly mortgage payments of $714 and quarterly property tax payments of $542. She pays $42 per month for home insurance, $180 every two months for electricity, $89 per month for natural gas, and $95 every two months for water. How much does Jasmine spend on accommodations in one year? (4 marks) (B2) 8. Linh has moved to a new city. She is renting a one-bedroom apartment for $800 plus electricity. The local electricity company requires a $100 deposit for new customers along with a $70 connection fee. Her landlord requires her to pay first and last months' rent prior to moving in. (4 marks) - (B2) a) Calculate the total amount that Linh must pay prior to moving in. b) What other expenses might Linh have to pay before moving in? 9. Last year Carl's gross income was $54 000. a) Using the deductions calculator in this unit in activity 5, complete the table below. (3 marks) - (B2) Gross Salary Total Taxable Income Federal Tax Provincial Tax CPP Total Deductions Net Pay Earnings Deductions b) From the table, calculate Carl's weekly net income. (1 mark - B2) c) The average rent for a one-bedroom apartment is his town is $1150 per month. The average rent for a two-bedroom apartment is $1500 per month. Can Carl afford to rent a one-bedroom apartment on his own or does he need to share a two-bedroom apartment with a roommate? Explain. Include appropriate gross debt service (GDS) ratio calculations (see activity 4) in your explanation. (3 marks) - (B2)

Answer rating: 100% (QA)

Answer Answer C 100 To save 7800 in three years with biweekly deposits you divide the total amount by the number of biweekly periods in three years 78... View the full answer