135 final Exam Review EXAM WITH 100 VERIFIED SOLUTIONS
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Course
NU1426
Institution
NU1426
135 final Exam Review 2024/2025 EXAM WITH 100% VERIFIED SOLUTIONS
What's the rule of 72?
What's a general partner?
T/F f you start a business a lender will want you to personally gaurantee a loan i.e. a home
what's the first thing you need to start a business?
what's part A of medicare?
P...
135 final Exam Review 2024/2025 EXAM WITH
100% VERIFIED SOLUTIONS
1). What's the rule of 72?
Ans: How long it takes for a sum of money to double at a given interest rate 72/
interest rate = # of years to double OR 72/# of years to double = interest rate
2). What's a general partner?
Ans: A general partner has the authority to act on behalf of the business without the
knowledge or permission of the other partners. Unlike a limited or silent partner, the
general partner may have unlimited liability for the debts of the business.
3). T/f f you start a business a lender will want you to personally gaurantee a loan i.e. a home
Ans: True
4). What's the first thing you need to start a business?
Ans: An idea
5). What's part a of medicare?
Ans: Part A medicare is free to seniors who apply and is financed by a 2.9%payroll tax
on all earned income paid by all workers with no salary cap. In effect, 1.45% is paid by
the worker and 1.45% is paid by the employee
6). Part b?
Ans: Part B of medicare is optional and means tested. It is financed by monthly
premiums paid by the insured which currently range from about to $134 to $428 per
month, based on a person's prior year's adjusted gross income. Is it paid directly or
deducted from Social Security checks. Parts A, B, and D have deductibles.
7). Part d?
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, Ans: Part D of medicare is optional and means tested. It is a prescription drug plan
currently provided only by private insurance companies and financed 25% by monthly
premiums from the insured and 75% by taxes.
B & D are means tested which means your income must be low enough to quslify for the
program
8). At what age are benefits available for social security and medicare?
Ans: 65
9). Are social security and unemployment benefits taxable income?
Ans: yes
10). What's the most important thing when determining your credit score?
Ans: Paying bills on time over time
11). What are late fees and how do you avoid them?
Ans: Pay your shit on time. payment late on minimum credit card payment: can't be
greater than your minimum payment
12). If you are the victim of credit card theft, what 's the first thing you should do?
Ans: contact Transunion, Experian, and Equifax
13). If you borrow money carrying a balance and you make an extra payment above the
minimum where do you want the extra money to go?
Ans: to the credit card with the highest interest
14). What is a prepaid card?
Ans: Prepaid cards are offered by banks and non banks. They are not linked to a bank
account. Prepaid cards were initially designed to provide less the affluent, those without
a bank account, to carry money. However, bnks have found that they can be quite
lucrative as they may charge initiation fees, inactivity fees, fees to load money onto the
card, fees if you do NOT load money onto the card, fees to check balane info, fees to use
an atm for cash, and fees for using a check to close an account.
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, 15). What is variable rate of interest?
Ans: A variable rate of interest is an interest rate that moves up and down based upon
a benchmark interest rate which is not controlled by the lender. It is now commonly used
by credit card issues. It is now commonly used by the credit card issuers. One example
would be to base the variable rate on the "prime rate" of interest which is supposesdly
the lowest interest rate banks charge their best customers.
16). What is a go-to rate?
Ans: A go-to rate is an interest rate you are charged on unpaid credit card balances, in
additon to the variable rate, to determine the total rate of interest on your account. Your
go-to rate is based on your credit history. As your credit card history improvesor declines,
so is the likelihood that your go-to-rate will rise or fall on future borrowings.
For examples, if your go-to-rate is 8% and the variable rate is 3% your total rate of interest
o unpaid balances is 11%. If interest rates rise and the variable rate increases to 5% your
total rate of interest will rise to 13%.
17). What is the minimium crirteria for a credit score?
Ans: At least one reported "account" which has been open for at least six months. At
least one report that has been reported by a lender in the last six months and nothing
that indicates you're deceased.
18). What records need to be collected about you before you get a score?
Ans: Record of paying bills on time over time
Debt-tocerdit ratio
Length of credit history
New accounts and recent applications for credit
Mix of credit cards and loans
19). Whats the legal limit on interest?
Ans: There is none
20). If you pay your credit card balance completely every month does it lower your credit score?
Ans: no
21). Do cc companies track your student loan payments?
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