Financial literacy quiz answers? How Moneywise are you? Only one very brave reader took the test. She actually scored 100 per cent, but there was one catch. For extra points, some questions had multiple answers. She, bless her heart, proclaimed to be a devoted fan of Moneywise, so loyalty was rated incredibly high on my list. But was there no interest in a quiz that was primed to point out getting your money’s worth and monitoring your finances? Maybe there were other reasons:

• You don’t like math.

• The article was boring.

• You had better things to do with your time (like work) than some quiz that didn’t even have a prize.

• You’d rather bet on the lottery and hope to be a winner there.

So, what’s a few dollars and cents here and there — it doesn’t matter in isolation, but in the long run it does matter; those extra costs all add up. Math matters in monitoring your finances, your budget, and spending while educating yourself.

It makes a difference, in less wasteful purchases and better financial decisions. Almost everything in our daily lives is tied to financial calculations, projections, and statistical analysis. You can’t build a house if you don’t understand geometry and physics.

You can’t work well (in the beginning) in a financial institution if you don’t understand the basics: how foreign currency exchange works, compound interest is calculated, capital appreciation is figured, and net return on assets along with more complex math for figuring options, swaps.

You want to provide the best nutrition possible for your family. Do you know what you are paying for? Empty calories are just that, empty and very expensive. You get my point. Hopefully, the quiz at least got your attention. Give me feedback please, readers, my mission is to keep you thinking and planning your finances.

The New York Times recently featured Math Madness in March to keep things lively and challenge reader brains. According to the Times, “A Math Problem from Singapore Goes Viral: When is Cheryl’s’ Birthday” by Kenneth Chang on April 14, 2015. This problem was originally posted on Facebook by Kenneth Kong, a television host in Singapore, achieving global viral prominence quickly as social media participants took on the challenge. I was not successful at finding the birthday date and had to cheat to find the answer. You try it!

The link is here. http://www.nytimes.com/2015/04/15/science/a-math-problem-from-singapore-goes-viral-when-is-cheryls-birthday.html

For those gentlemen interested in basketball, Number Play Math Madness by Gary Antonick explores basketball puzzles in the form of sports analytics: a heat map and calculations involving shooting percentages and free throws. For all you sports enthusiasts out there that love to throw percentages around, these two problems are fascinating. Try them here. http://wordplay.blogs.nytimes.com/2015/03/30/chartier/?_r=0

I encourage you to read the New York Times whenever you can. It is a superb paper.

Herewith then are the answers and explanations for the Bermuda financial quiz. The original article questions were featured on April 11, 2015.

1 The Bermuda dollar is worth more than the US dollar. Answers are B — worth less and C — worth the same. Why? The Bermuda dollar is considered at par with the US dollar when purchasing goods or services in a store, but just try changing Bermuda dollars to US dollars at your local bank. $1 Bermuda dollar does not equal $1 US dollar. The Bermuda Government assesses a tax of around one per cent (the amount keeps going up — it is a tax, you know) of the value, while your bank also takes a foreign exchange commission. You will always receive fewer US dollars. http://www.currency.me.uk/convert/bmd/usd

2 Which is the best food-worthy purchase choice for an individual’s daily protein need? Oh, this question was so front-end loaded for nutritional value.

C — Answer. It certainly was not potato chips for protein content, and rightly could be a toss-up between the kale/tofu combination or the container of cottage cheese. The best way to compare cheese and tofu is by protein content and price. Cottage cheese has 13 grams of protein. Tofu only 10 grams per one-half cup measure. You then have to compare cost of each gram, so common sense says that tofu may cost more than cottage cheese. Take your calculator to the ‘groshree’ store, if you want to get your foods-worth. http://nutritiondata.self.com/facts/dairy-and-egg-products/14/2

3 Your credit card company charges 18 per cent, compounded annually. Your balance is $5,000 after buying that designer bag. You are stressed and can only pay $100 per month for the next few years. You vow never to charge another thing!

C — Answer. You may never pay off the remaining balance. Paying the minimum above against the compounding effect monthly (or even daily) of 18 per cent interest fees, will take 30-plus years. Your total cost for that bag, almost $18,000. Credit card debt is the most insidious destructive element to relationships. If you cannot afford to buy it, never charge that purchase. If you must have that designer bag, pick up one at a local thrift shop. Trust me — $25 will buy a very nice one. http://www.bankrate.com/calculators/credit-cards/credit-card-minimum-payment.aspx

4 Which one of these drinks has the most the most expensive empty calories per dollar cost? A is the Answer. This was a loaded (pardon the pun) question, because it depends upon your lifestyle, doesn’t it? Using the same website www.nutritiondata.self.com, you can figure out the calories, then, calculate what 16oz of coke costs to 16oz of wine or beer (if you imbibe). Actually, they are all expensive — none of them have any nutritional value.

5 Your mortgage is amortised. This means that each month, the amount of your principal payment goes up and the amount of interest goes down.

D is the answer. This question is extremely important. If you, readers, or friends do nothing else each month and you have a mortgage, check your principal balance to be sure that it is dropping. The balance must get smaller each month — meaning that part of your mortgage payment has been applied to the principal. There are stories (real ones) where families have struggled for years and years to pay off a mortgage — only to learn that no principal payments had been applied to the balance. Their payments were all considered interest only. Imagine the horror and shock to find out 15 years later that you owe the same amount on your home as you did when you bought it.

Expect the unanticipated. Calculate it, plan for it, do the math and know that you are right.

I’m out of space, dear readers — the rest of the quiz answers next week. Have you remembered to honour your mother with a memorable gift?

Martha Harris Myron CPA CFP JSM. Masters of Law: International Tax and Financial Services,

Appointed to the Professional Tax Advisory Council, American Citizens Abroad, Geneva, Switzerland

President: The Pondstraddler* Life™ Consultancy: international financial planning, publications, presentations for the challenging lifestyles of multinational individuals and their families residing, working, crossing borders, and straddling ponds in the North Atlantic Quadrangle. Specific focus for residents of Bermuda, the premier international finance centre. Contact: martha@pondstraddler.com