Chapter Summary

Chapter Summary Vocabulary Review

1. A rise in the price of goods and services is known as _? _. inflation

2. A company that provides access to the Internet is called a(n) _? _. Internet service provider

3. A single number used to measure changes in the prices of goods and services is called the _?_. Consumer Price Index

4. Future spending plans are called _. _. budgets

5. A statistical measure of how much a dollar will buy is known as the _? _. purchasing power of the dollar 6. The minutes you spend calling on a cell phone are called _?_. airtime

7. The _? _ is the price of one item or one measure of an item. unit price

8. The period of time with which comparisons are made is a(n) _? _. base period

8-1 Average Monthly Expenses

1. If Daja spends an average of $140 per month on gas for her car, how much will she spend in a year on gas? $1,680

2. Jeannine spent the following amounts on transportation for 3 months: $330, $285.96, and $553.22. What is her average monthly transportation expense? $389.73

3. Driscoll's semi-annual auto insurance premium is $483. How much should he budget each month for auto insurance? $80.50

8-2 Creating a Budget 1. Jon Marlow's total income last year was $31,300. Of that amount, he spent $7,900 for food. What percent of Jon's total income did he spend for food? 25%

2. Cesar Guerr's total income last year was $35,000. He expects to earn $4,000 more this year and wants to budget 24 % of that income for food. What yearly amount should Cesar budget for food? What monthly amount should he budget for food? $9,360, $780

3. What yearly amount should Cesar budget for transportation if it is 17 % of his . income? What monthly amount rounded to the nearest dollar? $6,630, $553

4. Joanna earns $750 per week. She plans to save 15% of her income. How much will she save per week? How much will she saver per year? $112.50, $5,850

8·3 Best Buys

1. Shampoo A costs $3.89 for a 12-ounce bottle. Shampoo B costs $7.29 for a 2S-ounce bottle. Which shampoo costs less per ounce? How much less? Round to the nearest tenth of a cent. Shampoo B, $0.032

2. You can buy 2, 16-oz. jars of pasta sauce on sale for $1.99. Each 16-oz. jar regularly sells for $1.29. How much will you save if you buy 6 jars on sale? $1.77

3. A trencher can be rented for $27 an hour or $145 a day. If you need the trencher for 6 hours, how much will you save by renting it for the day instead of for 6 hours? $17

4. Leslie Wickam can rent an air compressor for $240 a week or buy it for $1,499.99. How many weeks of renting, to the nearest tenth of a week, will it take for the rental cost to equal or exceed the purchase price? 6.2 weeks 8·4 Optional Personal Expenses

8-5 Adjusting a Budget

1. The Rutladge family finds that they are over-budget $100 in food spending. They increase their $750 food budget by $100 per month, and decrease their $300 entertainment budget by $100. If their monthly income is $5,000 per month, what percent of income is budgeted for food? for entertainment? 17%,4%

2. The Settle family earns $45,000 per year. In the coming year, they will have an 8% increase in their income. If they budget 15% for savings, how much of their new income should they be saving per year? per month? $7,290, $607.50