Name:
Class:
Date:
ID: A
FinancialMath semester2 Final ExamReview
euestions
True/False
Indicate whether the statementis tue orfalse.
I ) A credit card can be usedto purchaseitems on credit as well
as debit.
2) An existing line of credit that a consumercan useat a store
is called an acquisitionaccount.
3) Storesoften issuechargeaccountsto their customersin order
to generatesales.
4) Many credit card companiesallow you to review your account
statementonline.
5) A financechargeis appliedto your chargeaccounteachmonth
whetheryou havean unpaidbalanceor not. It is a
chargefor the convenienceofhaving the account,
6) The unpaid-balancemethodcomputesfinancechargesbased
on the portion of the accountbalancethat you paid
eachmonth.
7) The averagedaily balancemethod- new purchasesincluded
meansthat the companyaddsany new purchasesto
the balanceat the end of eachweek
8) The formula to determinethe amountfinancedis the cashprice
9) The down paymentis the final paymentyou make when you
l0)
minus the down paymenr.
are done paying off your loan.
A repaymentscheduleshowsthe distribution of interestand other
chargesover the life of a loan. It usually does
not show the principal.
I I ) one reasonyou might want to make the final paymentof your
loan beforethe end of the term is so that you will
pay lessinterest.
Multiple Choice
Identifu the choice that best compretesrhe statement or answers
the question.
12) Nicole Bolton purchaseda new rug for $287 and a vacuum
cleanerfor $121. what is the salestax if she lives in
Iowa where the salestax rate is 60/o2
A) $t9.98
B) $20.40
c) s24.48
D) $31.9e
Name:
ID: A
l 3 ) CordellJohnsonpurchased
a snowblowerfor $237.00andtwo bagsof rock saltfor $3.15each.Whatis thesales
tax on his purchases
if he livesin Mainewherethe salestax rateis 5%o?
A) $r2.0r
B) $12.17
c) st2.2l
D) $r3.02
14) Mary Steinerpurchased
schoolsuppliesat OfficeEmporiumfor 597.62,Shethenpurchased
a dictionaryfor
shemustpaythe statesalestaxof 6.5Yoandthe
$22.95anda CD for $14.78at BooksExpress.Forall purchases
countytax of 0.5%.Whatis thetotaltax on herpurchases?
A) 57.4e
B) $8.47
c) se.47
D) $e.8e
l5) CarlottaRodriguezpurchased
.
six bushesfor $ 19.27each,a porchswingfor $88.22,anda gasgrill for 9321.77
price?
Shemustpaythe statetax of 4.5o/o
andthecity tax of 2%o.
Whatis thetotalpurchase
A) $34.r6
B) $43.61
c) $s25.6r
D) $sse.77
I 6) Ch in Quong purchasedI I bindersfor $ I .37 each,a dozenpensfor $0.87 each,and a box of copier paperfor
$27.| 9. He must pay statetax of 7.5Vo.countytax of 0.5%, and city tax of ZVo.[Iow much will he pay in taxesfor
his purchases?
A) $s.23
B) $s.27
c) $6.23
D) $6.27
17) David Taylor purchaseda teapotfor $23.95,a coffee makerfor $33.95,and a deluxe microwavefor $196.75for
his mother's birthday.The statetax is 6.5% and the city tax is L5%. What is the total purchaseprice?
A) $245.8e
B) $2s4.65
c) $27s.02
D) $34s.e8
l8) MarnieWalshpurchased
a deluxedictionaryfor $38.75anda full-coloratlasfor $41. 10.Thestatesalestax is 6Vo,
thecity taxis2.5o/o,
price?
andthecountytax is lolo.Whatis thetotalpurchase
A) $84.77
c) $87.44
B) $8s.66
D) $89.e8
l e ) ALGEBRA LutherVandekampt
purchased
a basketballfrom a storeand gavethe clerk a $20 bill and a $5 bill
andreceived$ I . I 2 in change.Ifthe salestax rate in his community is 6.5%, what was the selling price for the
basketball
beforetaxes?
A) $22.42
c) $23.42
B) $22.88
D) $23.88
20) DawnReynoldspurchased
six quartsof motoroil for $14.12.Whatis theunit priceperquartroundedto the
nearestcent?
A) $2.35perquart
C) $2.54perquart
B) $2.39perquart
D) $2.98perquart
Name:
ID: A
2l) TinaZappapurchased
a three-pack
of facialtissues
for $2.98.Whatis theunit priceperpackroundedto the
nearest
tenthofa cent?
A) $0.913perpack
C) $0.972perpack
B) $0.944perpack
D) $0.993perpack
22) ZachMazrahicanbuya dozenpencilsfor $1.89,24 pencilsfor $3.60,or 36 pencilsfor $5.49.Whatis thebest
buy?
A) A dozenpencilsfor $1.89
C) 36 pencilsfor $5.49
B) 24 pencilsfor $3.60
D) Allare thesameprice.
23) SamCollinswantsto getthebestdealin cerealhecanfind. He findsricepuffsfor $2.49for 24 ounces,$2.69for
36 ounces,
and$4.00for 48 ounces.
$2.29for l2 ounces,
Whatis theunitpriceof thebestbuy?
A) 7.47(,perounce
perounce
10.38d
C)
B) 8.33pperounce
D) 19.081perounce
24) JenniferEdwardscansubscribe
to a newspaper
for $99for ayear.$67for eightmonths,$38for four months,or
$0.30perday.Whichis thebestbuy?
A) $0.30perday
C) $67for eightmonths
B) $38for four months
D) $99for ayear
25) Mel Carreftneedsfour newtiresfor his car.He canbuy onetire for $87,two tiresfor $ I 74,threetiresfor $261,
or four tiresfor $348.Whichis thebestbuy?
A) onefor $87
C) threefor $261
B) two for $174
D) All arethesameprice.
26) NathanAlexanderwantsto purchase
earsof cornfor a familyreunionpicnic.A farmers'marketnearhis home
offerssix earsof cornfor $ 1.25, l2 earsof cornfor $2.40,or 36 earsof cornfor $7.20.Whichis thebestbuv?
A) 6 earsfor $ I .25
C) 36 earsfor $7.20
B) 12earsfor $2.40
D) Botha andc
27) ALGEBRA MorleyCunningham
computedthe unit priceof an 8-countpackage
of hamburger
bunsandfound
themto be $0.03moreperbunthantheunit priceof a l0-countpackage.
If the8-countpackage
costs$0.45less
thanthecostofthe l0-countpackage,
find thecostofthe 8-countpackage
lO-count
andthe
package.
A) $2.00;$2.45
C) $3.00;$3.45
B) $2.25;$2.70
D) $3.25;$3.70
28) MeganEvanshasa couponthat savesher $ I whenshebuystwo jars of peanutbutter.The peanutbuttercosts
$2.39perjar.Whatis thefinalpriceof thetwojars?
A) $3.21
c) $3.78
B) $3.47
D) $3.e8
29) Tien-YuMoy hada couponfor $1.50offa canof coffeethatwasvalid if he alsopurchased
coffeecream.The
regularpriceof thecanof coffeewas$6.99andthecoffeecreamwas$2.15.Whatis thefinal price?
A) $7.4e
C) $7.8e
B) $7.64
D) $7.e8
ID: A
Name:
30) ShereeWrightpurchased
a digitalcamerafor $367.99.Shereceiveda manufacturer's
$45mail-inrebateanda
$25rebatefromJack'sCameraStore.Whatis thefinal price?
A) $276.9e
c) $297.99
B) $287.87
D) $29e.00
3 I ) ThomasPeterspurchased
a newSUV for 532,984.He receiveda $2,175 rebatefrom thecardealeranda $500
rebatefrom the manufacturer.
What is the final price?
A) $29.309
c) $31,309
D) $32,309
B) $30.309
purchased
32) KesaraSantiago
a ridingmowerfor $2,746.00.
Shereceiveda $49.95rebatefromthemanufacturer
and
a $38.95rebatefrom the store.Whatis thefinal price?
A) $2,345.89
c) $2,657.10
B) $2,567.10
D) $2,789.60
33) PamelaHafer and her friend are planningto host a party. Pamelaoffered to purchasethe potatochips and dip. She
can buy a l2 ouncebag for $2.50with a $1.00off coupon,a 15 ouncebag for $1.75with no coupon,or a22 ounce
bag for $3.79with a $0.75offcoupon. The salestax is 5.5%. Basedon the unit price per ounce,what size is the
bestbuy?
A) 12ouncebag
C) 22ouncebag
B) l5 ouncebag
D) they are all the sameper ounce
34) Builder'sWarehouse
hasa clearance
on overstocked
merchandise.
A picnictablethatusuallysellsfor $167is on
salefor $149.Whatis themarkdown?
A) $r5
B) $18
c) $22
D) $31
35) ShashiRamwantsto buy softwareto helphim with his incometax.Thesoftwareregularlysellsfor $54.00.The
salepriceis $37.99.Whatis themarkdown?
A) $r5.0r
c) $16.01
B) $1s.99
D) $16.99
3 6 ) CrystalPorterwantsto purchasea new minivan.It regularlysellsfor 524,987
. Themanufacturer
is ofTering
a sale
priceof SI 8,994.Whatis themarkdown?
A) $4,998
B) $5,665
c)
$s.993
D) s6.007
37\ April Mendozais readyto purchase
a newsuit.It regularlysellsfor $132.45,but is on salefor $89.95.Whatis the
markdown?
A) $42.s0
B) $43.s0
c) $46.50
D) $4e.80
38) ALGEBRA Orlo Jackmanheard an ad on the radio for a weekend cruise to the Bahamas,available for $ I 50 off
the regularprice this week only . This discountreflecteda25Vomarkdown.What is the regularprice of the cruise?
A) $600
c) $e00
B) $7so
D) $ 1,000
4
ID: A
Name:
39) Theregularsellingpriceof a 22" tlbe televisionis $389.Themarkdownrateis 33%.Usethe percentpaidto
determine
thesaleprice.
A) 824s.34
C) S267.8e
B) 5260.63
D) S287.56
40) Theregularsellingpriceof a mountainbike is $369.27
. Themarkdownrateis 27%.Usethepercentpaidto
determine
thesaleprice.
A) $260.e8
C) $26e.s7
B) $26s.77
D) $278.e8
4l ) Theregularsellingpriceof a reclinerat FurnitureDepotis $289.Themarkdownrateis 33%.Whatis thesale
price?
A) $13e.36
C) $2t3.25
B) $193.63
D) S23t.s2
42) ALGEBRA Veronica'sDressShopmarkeddowna pairof shoesl5Yoif thecustomerpurchased
themwith a
dressor pantsuit.Theshoes'salepricewas$59.00.How muchwouldtheshoescostif purchased
alone?
A) $6s.00
c) $69.41
B) $68.32
D) g72.ee
43) MarissaPalmer'schargeaccountstatement
showeda previousbalanceof $142.55,a financechargeof $2.82,new
purchases
of $86.50,anda paymentof $80.00.Whatis hernewbalance?
A) $123.s4
C ) $ r5r . 8 7
B) St47.s2
D) $ | 87.s5
44) MannyFox'schargeaccountstatement
showeda previousbalanceof$550,a financechargeof$3, newpurchases
of $600,anda paymentof $250.Whatis his newbalance?
A) $8e0
B) $e00
c) $eo3
D) $e0s
45) AdelePalmer'schargeaccountstatement
showeda previousbalanceof $1,500,a financechargeof $5,new
purchases
of $80.00.Whatis hernewbalance?
of $150,anda payment
A) $1,475
C) $1,585
B) $1,575
D) $t,654
46) LenaCraig'schargeaccountstatement
showeda previousbalanceof $1,100,a financechargeof $6,new
purchases
of $700,anda paymentof $ I 80.Whatis hernewbalance?
A) $1,626
C) $t,866
B) $1,766
D) $1,888
47) DanteMichel'schargeaccountstatement
showeda previousbalanceof $277.45,a financechargeof $3.22,new
purchases
of $316.00.Whatis hisnewbalance?
anda payment
of $299.33,
A) $234
C) 9267
B) $264
D) 5287
ID: A
Name:
48) JaredMoore's credit card statementshoweda previousbalanceof $921.07,a financechargeof $13.80,new
purchases
of $962.01,and a paymentof $990.37.What is his new balance?
A) $ 7 5 3 . 6 r
B) $ 8 5 3 . 2 s
r
c) $e06.s
D) $9s2.82
49\ LarryThomas'schargeaccountstatement
showsan unpaidbalanceof $800.Themonthlyfinancechargeis 1.5%
of theunpaidbalance.Whatis thenewaccountbalance?
A) $80e
B) $ 81 2
c) $8le
D) $871
50) Arianne Greene'schargeaccountstatementshowsan unpaidbalanceof $376.00.The monthly financechargeis
135% of the unpaid balance.What is the financecharge?
A) Ss.64
B) Ss.9s
c) $6.e6
D) $7.e8
5 I ) Patrick David's chargeaccountstatementshowsan unpaid balanceof $ I | 0. The monthly financechargeis 2Voof
the unpaid balance.What is the new accountbalance?
A ) $ rI r . 0 l
B) $ i l r . s 9
c) $l I 1.75
D) $112.20
52) Danin Newberry'schargeaccountstatement
showsan unpaidbalanceof 5875.Themonthlyfinancechargeis
|.65%of theunpaidbalance.
Whatis thenewaccount
balance?
A) $88e.oo
B) $889.44
c) $8e6.1I
D) $8e6.50
53) PaulineDavis'schargeaccountstatementshowsan unpaidbalanceof $255.The monthlyfinancechargeis | .25o/o
of the unpaid balance.What is the new accountbalance?
A) $ 2 4 5 . r 9
B) $2s8.lq
c) s26s.o0
D) $26s.so
54) Lucinda Thompson'schargeaccountstatementshowsan unpaidbalanceof $222.08.The monthly financecharge
is 1.5%of the unpaidbalance.What is the financecharge?
A ) S 3 . lI
B) $3.33
c) $3.e8
D) $5.43
55) Destiny Paxtonhas a previousbalanceat a retail storeof $59.27.Shehad paymentsand creditsof $29.21. T'he
financechargeis 1.75%of the unpaidbalanceand shehad $16.16in new purchases.
What is the new balance?
A) $43.21
B) 546.75
c) $47.r
r
D) $47.26
56) AlexandraRomarhasa previousbalanceat PorterPharmacy
of $68.42.Shehadpayments
andcreditsof $18.25.
Themonthlyfinancechargeis 1.85%of theunpaidbalanceandshehad$34.00in newpurchases.
Whatis the new
balance?
A) $80.es
c) $8s.10
B) $81.20
D) $88.20
TD: A
Name:
s7) ALGEBRA
BlakeEwasko'schargeaccountusesthe unpaidbalancemethodto computethefinancecharges
at a
monthlyperiodicrateof 2.15%.Duringthemonth,he charged$189.34,madea $100.00payment,andhada
FindBlake'snewbalance.
$21.54financecharge.
A) $r.00r.86
B) $r.r01.86
c) $1,312.74
D) 5t,320.74
58) Find the averagedaily balance(new purchasesincluded).
Dates
Payment
2/t-2/10
2ll1
Purchase
$86.42
2n21t20
2/21
2122-2/28
$65.00
End-of-Day
Balance
X
Number of
Davs
$ 1 5 3 . 7 8X
240.20 X
240.20 X
t 7 5 . 2 0X
t 7 5 . 2 0x
l0
9
7
28
Total
Sum of
Balances
$ 1 , 5 73 . 8 0
240.20
2 , 1 6.18 0
17s.20
1,226.40
c) s190.76
D) $1e8.22
A) $176.s5
B ) Sr7 8 . 8 8
59) Find the averagedaily balance(new purchases
included).
Dates
Payment
3il*3t9
3 /l 0
3lt1-3119
3t20
3l2t1l3l
A)
B)
$ r1 3 . 3 0
$126.44
Purchase
$66.32
$ r7 5 .0 0
End-of-Day
Balance
X
Number of
Davs
$ 1 3 3 . 9 8X
200.30 X
200.30 X
25.30 X
25.30 X
ll
Total
3l
c)
r
$178.0
D) $r 98.00
9
I
Sum of
Balances
$1 , 2 0 5 . 8 2
200.30
1,802.70
25.30
278.30
ID: A
Name:
60) Find the averagedaily balance(new purchasesincluded).
Dates
Payment
End-of-Day
Balance
Purchase
tzlt-1213
$s0.00
l2t4
tzts-12n4
$r00.00
t2il5
t2il6-12t3l
X
Number of
Davs
$r00.00 X
r 50.00X
r 50.00X
l0
50.00 X
50.00 X
t6
Total
3l
a
J
Sum of
Balances
$ 300.00
r 50.00
t,500.00
50.00
800.00
c) s132.22
D) $1s4.33
A) $e0.32
B) $e8.27
6l ) Find the averagedaily balance(new purchasesincluded).
Dates
Payment
Purchase
l/1-1t9
Ut0
Int-tilg
End-of-Day
Balance
$250.00X
500.00
$250.00
v20
X
$r 75.00
U2l-U3l
Number of
I)avs
I
Sum of
Balances
$2,250.00
s00.00
1
I
s00.00X
9
3 2 5 . 0 0X
325.00 X
I
ll
Total
3l
4.500.00
325.00
3,575.00
c) $300.s0
D) $3se.68
A) $200.7s
B) $2s0.s0
62) Find the averagedaily balance(new purchasesincluded).
Dates
Payment
Purchase
End-of-Day
Balance
tzll-1213
$ r5 0 .0 0
l2t4
t2l5-t2lt4
tzn5
t2ll6-t2l3l
srr0.00
X
Number of
Davs
$200.00 X
350.00 X
350.00 X
240.00 X
240.00 X
Total
A) $232.76
B) $ 2 7 s . 1 6
c)
$ 3 0 1I .I
D) $332.17
3
I
Sum of
Balances
$ 600.00
350.00
l0
3,s00.00
I
240.00
3,840.00
l6
3l
ID: A
Name:
63) Find the averagedaily balance(new purchasesincluded).
Dates
Payment
Purchase
2ll-1215
2t6
End-of-Day
Balance
$l10.00
2t7-l211s
$1 2 s . 0 0
2lt6
Sum of
Balances
Number of
Davs
$275.00 X
385.00 X
5
38s.00X
9
l
260.00
260.00
2n7-12t31
X
X
$I , 3 7 5 . 0 0
385.00
3.465.00
260.00
3,900.00
t5
X
3l
Total
c) $329.74
D) $3s4.29
A) 5302.74
B) $30s.6e
64) Find the averagedaily balance(new purchasesincluded).
Dates
Payment
t2,l-t2/5
t2t6
Purchase
$410.00
t2l7-t2lts
12116
t2il7-t2t3l
End-of-Day
Balance
X
Number of
Davs
s 67s.00X
5
I , 0 8 5 . 0 0X
l ,085.00X
l
9
I
r60.00 X
r60.00 X
$925.00
Sum of
Balances
$
l5
3l
Total
.45
c) $541
D) S9r0.35
A) $0.00
B) $4s0.01
included).
65) Find the averagedaily balance(new purchases
Dates
Payment
Purchase
End-of-Day
Balance
X
$ s.00 X
2t6
s6 ,7 1 0 .0 0 6.7r 5.00 X
6 . 7 r 5 . 0 0X
2t7-t2lt5
4 8 1. 0 0 X
2^6
s6,234.00
48r .00 X
2n7-t2t3l
2t1-12t5
Total
A) $ 2 , 4 1 5 . l 9
l.8l
B) $ 2 , 6 3
c)
Sum of
Balances
Number of
Davs
$ 7 , 4 I3. 1 9
D) s7,437
.10
5
l
9
I
l5
3l
s
Name:
ID: A
66) Find the averagedaily balance(new purchasesincluded).
Dates
Payment
Purchase End-of-Day
Balance
t2lt-12t5
X
Number of
Davs
s9.090.00X
t2/6
$34.21
t2t7-12^5
t2^6
$5,000.00
t2n7-12t31
9, 24.2
9, 24.2
4, 24.2
4, 24.2
I
X
9
I
X
X
Total
s45.450.00
5
X
Sum of
Balances
l5
3l
c) $6,954.30
D) $6,976.00
A) $6,538.05
B) $6.877.21
Figure 7.1. Department Store Statement for JessicaHorowitz
Reference
Posting
Date
Purchases Payments&
&
Credits
Description
Advances
7651209
4tIt202
3245009
t31t 107
Billing Period
6t25
6t2'l
6t28
6129
Juniors
Housewares
Childrens
PAYMENT
Previous
Balance
Periodic Rate
611- 6130
$215.00
Payments&
Credits
PurchasesI
Advances
sr7s.00
l.5Yo
New
Balance
$132.76
32.10
45.66
$125.00
Average
Daily
Balance
Finance
Charge
$r 23.09
Minimum
Pavment
$2s.00
Payment
Due
1t25
Use Figure 7.1. Jessica'scredit card's financechargeis computedatl.5oA of the averagedaily balance. What is
the finance charge for the month?
A) S1.50
B) $1.8s
c) $2.1I
D) $2.s4
68) UseFigure7.1Whatis theunpaidbalanceon Jessica's
account?
A) $40.00
c) $132.76
B) S123.09
D) $21s.00
69) UseFigure7.1Whatis thetotalof thenewpurchases
Jessica
madeduringthemonth?
A) $ 1 2 3 . 0 e
B) $ r 2 s . 0 0
c) $210.30
D) $210.s2
l0
Name:
ID: A
70) UseFigure7.I. Whatis Jessica's
newbalance
asof theendof June?
A) $300.s2
B) $ 3 0 1 . 23
c) $302.37
D) $303.87
7l) Victor Hernandez
hasa creditcardthatbasesits financechargeon theaverage-daily-balance
method-new
purchases
included.His monthlyperiodicrateis 2.9Voandhis financechargefor themostrecentbilling cyclewas
dailybalance.
$37.Findhisaverage
A) $1,009.44
c) $1,200.81
B) $r,174.30
D) $1,275.86
72) GeneMcDonald'sbankgrantedhim a single-payment
loanof $5,000for 90 daysat 9o/oordinaryinterest.Whatis
theamountof ordinaryinterestowed?
A) $ll2.s0
B) $132.s0
c) $r50.00
D) $r56.20
73) Scott Peter'sbank grantedhim a single-paymentloan of $3,250to pay a repair bill. He agreedto repaythe loan in
3 I days at an exact interestrate of 11.75%.What is the maturiry value of the loan?
A ) $ 3 , 21 . 0 9
B) $3,282.43
'14)
c) $3,300.90
D) $3.554.66
MarinaCuzmon'sbankgrantedhera single-payment
loanof $3,250to paya repairbill. Sheagreedto repaythe
loanin 3l daysat an ordinaryinterestrateof ll.75%. Whatis thematurityvalueof the loan?
A) $3,012.21
c) $3,282.88
B) $3.221.09
D) $3,454.99
75) ManuelFraser'sbankgrantedhim a single-payment
loanof $9,650.He agreedto repaythe loanin 146daysat an
ordinaryinterestrateof 7.75o/o.
Whatis thematurityvalueof the loan?
A) 59,091.22
B) $9.949.
ts
c) $9.953.30
D ) $ r 0 . 0rr. 0 r
76) BarbaraD'Angelo'sbankgrantedhera single-payment
loanof $ 1,000for 100daysat l2Voordinaryinterest.
Whatis theamountof ordinarvinterestowed?
A) $32.15
c) $34.5s
B) $33.33
D) $36.77
77) ALGEBRA Walt Carterborrowed$2,500.00
to purchase
a motorcycle.
He agreedto payback$2,800.50inZ70
days.Whatexactinterestratewashe paying?(Roundyouranswerto thenearesttenthof a percent.)
A) 8.0%
c) ts.t%
B) 11.4%
D) 16.20/o
78) TashekaQuinnis buyinga newcouchfor $989.Shemadea downpaymentof $200andfinancedthe remainder.
Whatamountdid shefinance?
A) $766
c) $799
B) $78e
D) s877
ll
ID: A
Name:
79) SpencerWard purchaseda new riding mower for $1,989.He madea l5o/odown paymentand financedthe
remainder.What amountdid he finance?
c) $r,678.ee
A) $r.6r0.00
B) $t,613.60
D) $1,690.65
80) RebeccaWhitaker purchaseda new flat screentelevisionfor $767. Shemadea20o/odown paymentand financed
the remainder.What amountdid she finance?
c) s66s.00
A) $613.60
B) S617.50
D) s767.00
8l ) Adolfo Ramirezpurchaseda microwaveand dishwasherfor $897. He madean I 8% down paymentand financed
the remainder.What amountdid he finance?
c) s786.r2
A) $ 7 3 s . s4
B) $766.34
D) $791.01
82) JuanitaKaroz purchasedlawn furniture for $727. She madea27oh down paymentand financedthe remainder.
What amountdid shefinance?
A) $510.88
B) $s30.71
c) $600.1I
D) $627.84
83) BonitaWolfe purchaseda mediasystemfor her homewhich includeda televisionfor $l,398.77,a computerfor
$895.60,surroundsoundfor $ I,560.99,and a DVD playerfor $23I .15.She lives in Floridaand paysa lVo sales
tax. If she madea down paymentof lSYoandfinancedthe rest using the store's installmentplan, what amountdid
shefinance?
A) $3,716.68
B) $3,871.68
c) $4,171.57
D) 94,372.57
Figure 8.1. Use this table with the question(s) below, as needed.
MONTHLY PAYMENT ON A SIOOLOAN
Term in
Annual PercentageRate
Months
8.00% | ro.ooz I tz.oo"t"I tt.oo"t"
6
17.06
11.16
17.25
t7.35
t2
r8
24
30
36
42
48
8.70
5.91
4.52
3.6e
8.79
6.0r
4.61
3.78
8.88
6.10
1.7l
3.81
8.98
6.19
4.80
3.9^7
J.IJ
).L)
J.) /.
J.+:
2.14
2.14
2.83
2.54
2.q3
2.63
3.03
2.'73
84) UseFigure8.1. CoreyGriffin obtainedan installmentloanof $ I ,000.Theannualpercentage
rateis 804.He must
repaythe loanin l8 months.Whatis the financecharge?
A) $59.10
c) $75.10
B) $63.80
D) $78.20
t2
Name:
ID: A
85) UseFigure8.1. KatieColepurchased
a mountainbikewith an installmentloanthathasan APR of l4Vo.The
mountainbikesellsfor $762.Thestorefinancingrequiresa 15%o
downpaymentand24 monthlypayments.
What
is the financecharge?
A) $el.0s
B) $95.s0
c) $e8.46
D) $ee.00
86) UseFigure8.1.Tulio Fernandez
purchased
a treadmillwith an installment
loanthathasan ApR of l2%.The
treadmillsellsfor 91,672.Thestor€financingrequiresa 10%o
downpaymentand l2 monthlypayments.
Whatis
the financecharge?
A) $89.00
c) $e8.76
B) $e2.s0
D) $e9.s0
87) UseFigure8.1.MaxwellBarberpurchased
a chainsawwith an installmentloan that has an APR of 8%. The chain
sawsellsfor $169.Thestorefinancingrequiresa l|vo downpaymentand l8 monthly payments.What is the
financecharge?
A) S e . l 3
B) $9.72
c) $| 0.9s
D) st2.22
88) Chico Alvarezobtaineda loan of $2,400to install a new roof on his home.The interestrate is l2o/oandthe
monthlypaymentis $l13.04. What is the intereston the first monthlypayment?
A) $24.00
B) $2s.04
c) $2e.e0
D) $32.01
89) Camryn Mason obtaineda $ I ,200 loan for her scubadiving lessons.She borrowedthe money for 6 months at 7o/o
interest.Her monthly paymentis $204.10.What is the balanceof her loan after three payments?
A) Sr9e.4l
c) $605.24
B) $404.67
D) $804.65
90) Camryn Mason obtaineda $ I ,200 loan for her scubadiving lessons.Sheborrowedthe money for six monthsat
7oZinterest.Her monthly paymentis $204.10.What is the interestfor tlre secondpayment?
A) $3.53
B) $4.6e
c) $s.8s
D) $7.00
9l) BradClarktookouta simpleinterestloanat l3% interest
for l2 months.His previous
balance
is $619.Whatis
the finalpaymentif the loanis paidoff with thenextpayment?
A) $621.00
c) $634.00
B) $62s.71
D) $67s.09
92) MarcMaxwelltookout a simpleinterestloanat l3o4interestfor l2 months.His previousbalanceis $2,681
.04.
Whatis thefinal paymentif the loanis paidoff with thenextpayment?
A) $2,710.08
c) $2,876.9r
B) $2.80r.01
D) $2,998.01
IJ
ID: A
Name:
e3) ChloeClossonpaidfor hervacationto themountainswith a $3,000installmentloanat l0% for l2 months.Her
If Chloepaysoff the loan
thebalanceduewas$1,786.20.
were$263.75.After five payments,
monthlypayments
with the sixthpayment.how muchwill shesave?
c) $213.8s
D) $308.9s
A) $4s.17
B ) S r3 s . 6 7
94) DanWilliamstookout a simpleinterestloanat 14.5%interestfor 12months.His previousbalanceis $119.42.
Whatis thefinal paymentif the loanis paidoff with thenextpayment?
c) $132.90
D) $l s l.23
A) $e8.74
B) $ 1 2 0 . 8 6
95) RoperFox tookout a simpleinterestloanat 5olointerestfor 12months.His previousbalanceis $200.Whatis his
final paymentif the loanis paidoff with thenextpayment?
c) $200.'t2
A) $200.31
D) $200.83
B) $200.s6
Figure 8.2. Use this table with the question(s) below, as neededAPR
Term
6
t2
r8
/.+
t0.00%
lo.25"a
r0.50%
10.750/o 1 t . 0 0 %
ll.2s"
11.50%
ll.75o/o
t2.0006
t2.2soh
Finance Charge per $100of Amount Financed
1 $3.23 $ 3 . 3 l $3.38 $3.45 $ 3 . 5 3 $3.60
$2.94 $ 3 . 0 1 $3.08 $ 3 . 6
6.76
6.48 6.62
5 . 5 0 s.64 5 . 7 8 5.92 6.06 6.20 6.34
9.98
9.3s 9 . 5 6 9 . 7 1
8.52 8 . 7 3 8.93 9 . 1 4
8.r0 8.3l
1 0 . 7 5 I 1 . 0 2 r 1 . 3 0 r 1 . 5 8 11 . 8 6 1 2 . 1 4 12.42 12.10 1 2 . 9 8 13.26
96) Use Figure 8.2. JosephAlexanderobtainedan installmentloan of $ 1,500.He agreedto repaythe loan in I 8
monthlypayments.The financechargeis $146.25.What is the APR?
A) 10.2s%
B) 10.'ts%
c) l l.0o%
D) 12.00%
97) UseFigure8.2.AnthonyHowardobtainedan installmentloanfor $800to payfor a homerepair.He agreedto
The financechargeis $24.64.Whatis theAPR?
repaythe loanin six monthlypayments.
c) 10.50%
A) 10.00%
D) l r .00%
B) 10.2s%
98) Use Figure 8.2. Anthony Jonesobtainedan installmentloan for $460 to pay for a washingmachine.The finance
chargeis $ I 5.88. He must pay off the loan in six monthly payments.What is the APR?
A) r0.00%
B) 10.7s%
c) tt.50%
D) n.'15%
andhewill
loanfor $3,560.His financechargeis $308.56,
an installment
99) UseFigure8.2.AlanCohlobtained
Whatis theAPR?
makel8 monthlypayments.
A) t0.2s%
B) t0.s%
c) 10.7s%
D) r 1.00%
l4
ID: A
Name:
Figure 8.5 Formula for Computing the APR on an Installment Loan
mf (95n+ 9)
( l2n) (n + l) (4a+f)
Where m = Number of paymentsper year
f = FinanceCharge
n : Number of scheduledpayments
APR =
a: Amount Financed
100) ALGEBRA Haywood Price purchasedliving room fumiture for $1,860.He borrowed$1,200and promisedto
repay the loan in 2years. The financechargewas $308.25.To the nearesthundredthof a percent,what is the
annual percentagerate?
A) 14.02%
C) 23.02o/o
B) 18.02%
D) 2s.02%
l0l)
John Simms is shoppingfor a new sport utility vehicle. A portion of the sticker for an SUV is shown below. What
is the sticker price?
SUV
$28.I 50
BasePrice
OptionalEquipmentDescription
Anti-LockBrakes(ABS)
(A1-O)
AutomaticTransmission
900
630
DestinationCharge
699
c) $31,379
D) $40,256
A) $29,680
B) $30.37e
102) JanetSmith is shoppingfor a new sport utility vehicle. A portion of the sticker for an SUV is shown below. What
is the sticker price?
SUV
$28,I 50
BasePrice
Optional EquipmentDescription
Anti-Lock Brakes(ABS)
Automatic Transmission(ATO)
DeluxeCD/Radio
DestinationCharge
A) $28,150
B) $31,300
900
630
1,420
699
c) $31,799
D) $33,849
l5
ID: A
Name:
purchased
103) Mike Shepherd
for thecar'sbasepriceanda $164.00destination
a newsedan.He paid$28,905.50
charge.Thecar'soptions,a sunroofandair-conditioning,
cost$3,609.00.
Whatis thestickerprice?
A) $28,905.50
c) $32,514.50
B) $29,069.50
D) $32.678.s0
| 04) PalmerMercedes
wantsto buy a newsporthatchback.
Thebasepricefor thecar is $26,970andthedestination
chargeis $600.Theoptionpackage,
includinga l2-discCD changerfor his trunk,costs$2,440.Whatis the
stickerprice?
A) $27,570
c) s3o,0l0
B) $28,1l0
D) $30,550
105) CardealerBenCarterpaid97%of thebasepriceof $22,567. He alsopaid93%of optionstotaling$3,465,anda
destination
chargeof $650.Whatis thedealer'scost?
A) $22.s39.99
B) 92s.242.44
c) szs,762.44
D) s26,889.99
106) Car dealerLisa Kovach paid 82% of a car's optionstotaling $3,098.She paid 85% on a baseprice of $ I 5,480.The
destinationchargewas $890. What is the dealer'scost?
A) $13,158.00
B) $16,588.36
c) $| 8,020.36
D) $19.001.20
I 07) CardealerAakarSinghpays89Yofor a carthathasa basepriceof $23,998.He pays87o/o
of its $3,425options
priceanda $460destination
charge.Whatis thedealer'scost?
A) $21,358.22
c) $24,337.97
B) $21,818.22
D) 524,797.9't
108) Terri Davisis planningto buya newcar.Whileon the Internetshelearnedthatthecarhasa basepriceof
charge.Shereadon a consumer's
Websitethatthe
$16,007,optionsthattotal 52,334,anda $500destination
dealer'scostfor thecaris about94Voof thebasepriceand89Yoof theoptionsprice.WhatshouldDavisestimate
asthedealer'scost?
A) $17,623.84
c) $18,421.09
B) $17,800.25
D) $18,862.1I
109) ALGEBRA Jian Lee researchedthe dealer'scost of a new car he wantedto purchase.He found that the dealer's
basecost was $23,450.50and the dealer'scost for the options he wantedwas $2,300.75.The dealerwould pass
the $650 destinationchargeon to the consumer.If the percentof dealer'scost is 84o/oandthe percentof dealer's
cost of options is 88o%,find the car's sticker price.
A) 530.5
r3.s7
B) $ 3 0 . 5 3 1 .7 s
c) $31,181.75
D) $33,450.21
I l0) A 2-doorsedanstickershowsa basepriceof $12,130.00,
with optionstotaling$2,623.00
anda $515.00
destinationcharge.ConsumerReportsshowsthe dealercostat about93% of the basepriceand97%o
of the
options.Whatis thedealer'scost?
A) S14,340.21
c) $15,419.75
B) 514,419.75
D) $r6.sr3.8s
l6
lD: A
Name:
I I l) PaulaBrockwantsto purchase
a four-year-old
V6 sedan4-dooqwhichis advertised
at $l 1,925.Thecarhasno
guidedoesnot indicateany
air-conditioning
andno powerseats.It hasbeendriven49,000miles.Theused-vehicle
adjustment
retailpricefor this vehicle?
for this car'smileage.Whatis theaverage
Four-Year-Old Vehicles
V6 Sedan4-Door
Deductwith no Air-Conditionine
Deductwith no Power Seats
Add Aluminum/AllovWheels
Add CompactDisc Player
Add LeatherSeats
Add Theft RecoverySystem
A) $2,560
B) $9,750
Average
Retail Value
$11.925
800
150
200
r00
350
50
c) $10,908
D) $10,97s
112) Eddie O'Neil found a car advertisedat a local used-cardealershipfor $34,000.The car is clean and in good
condition.Its averageretailvalue is $33,400.It hasair-conditioningvaluedat $840and leatherseatsvaluedat
guideindicatesthat $ 1,450
$200,but it doesnot includea CD player,which is valuedat $ I 00. The used-vehicle
shouldbe deductedfor excessivemileageon the car. What is the averageretail price for this vehicle?
A) $32,890
B) $33,97r
C) $34.s0r
D) $34,890
1l3) Nate Shermachfound a two-year-oldluxury car advertisedfor $3 l, I 75. Its averageretail value is $30,850.It has
aluminum alloy wheelsvalued at $300 and a theft recoverysystemvaluedat $75, but it doesnot includea CD
player,which is valuedat $ 100.The car has beendriven 47,005 miles. The used-vehicleguide indicatesthat if the
car's mileageis between46,000 and 5l,000 miles, $700 shouldbe deducted.What is the averageretail price for
this vehicle?
A) $30,164
C) $31.098
B) $30,425
D) $32.874
l7
ID: A
Name:
Figure 9.2 Use this table with the question(s) below, as needed.
fe!trf
Drrru:
hr6
t rI000
50,me
18000
tslf
$zee
m;
$Jlt
ldbrffi
y lidlr
ffi
t30t
fiffi
w
u6
trf
fif
338
35t
$ts
7ra
ts
_p!rsr_]_{am
tsn
flffi
micr
3sr I
4?t
.,fr
rt
-
twrnn
Collldot
fnO Ddtdlf
Confdst*re
lS DGdufflr
kummfrftg
AgG
Gup
t
*
ft
r2
rt
TU
ftst
31?9
6{
2*l
$m
M
2r2
s
281
:n0
tfit
15$
fil3
2t7
25
$ttr
Ir42
I
C
ru
r€
lt3
2:B
D
rot
A
$ro
a.
$e
I
s
c
66
6l
D
fru"
$s
$r22
tl
90
t0t
77
t02
12fl
115
T'
s
s?
1t0
&
$il3
fib
lil't
129
121
policyincludes
I l4) UseFigure9.2. AmyMiller'sinsurance
25/100bodilyinjurylimitsand$25,000property
damage.
ratinggroup14.Shehasa $50deductible
Hervehicleis in agegroupB andinsurance
and$50
comprehensive
factoris 2.4.Whatis herannualpremium?
deductiblecollisioninsurance.
Miller's driver-rating
A) $74s
C ) $t , 7 8 8
B) $895
D) $2,300
I l5) UseFigure9.2.lvanCabrerra'sinsurance
policyincludes
50/100bodilyinjurylimitsand$50,000property
ratinggroup13.Shehasa $50deductiblecomprehensive
damage.
Hervehicleis in agegroupB andinsurance
and
collisioninsurance.
Miller'sdriver-rating
factoris2.2.Whatis herannualpremium?
$50deductible
A) $790
C ) $ r , 51 2
B) $895
D) $1,617
I l6) UseFigure9.2.CliveWilliamsis theprincipaloperator
of hisvehicle.His driver-rating
factoris 2.8andhiscaris
in agegroupD andinsurance-rating
groupI l. Thecoverage
he wantsto purchase
is 50/100bodilyinjuryand
He wouldalsolike to have$50deductiblefor bothcomprehensive
andcollision.
$100,000for propertydamage.
Whatis his annualbasepremium?
A) $1,345.80
C) $1,750.30
B) $r,4s0.00
D) $r,825.60
l8
Name:
ID: A
1 t 7 ) UseFigure9.2.Kevin Mahanis the principaloperatorof his vehicle.His driver-rating
factoris 1.8andhis car is
in agegroupC andinsurance-rating
group10.Thecoverage
he wantsto purchase
is 50/100bodilyinjury and
$25,000for propertydamage.
He wouldalsolike to have$50deductiblefor bothcomprehensive
andcollision.
Whatis his annualbasepremium?
A) $1,023.30
c) $1,090.70
B) $r,056.60
D) $1.230.s0
I I 8) Molly Pierceos
annualbasepremiumis $ I , | 75.80andherdriver-rating
factoris I .5.Whatis herannualpremium?
A) $783.86
c) $1.197.70
B) $1,177.30
D) $1,763.70
I l9) William Meyerboughta usedcarfor $6,500two yearsago.He spent$1,299for gas,$160for oil changes,
$209
for maintenance,
and$200for hryonewtires.He paid$657for insurance
and$ 158for registration
andlicenses.
He calculates
thecarhasdepreciated
by about$2,100.William alsodrovethecara totalof 16,789milesand
estimates
thatits presentvalueis $4,400.Whatwasthecostpermile for Williamto operateandmaintainhis car?
A) S0.2s
c) $0.30
B) $0.28
D) $0.32
I 20) For the pasttwo yearsLynda Santanahasrecordedthe costsof operationof her car. They total $ 1,600of fixed
costsand $2,134of variablecosts.She'sdrivena total of 14,000miles.What was the costper mile?
A) $0.2s
B) S0,26
l2l)
c) $0.27
D) $0.28
Carlos Rivera purchaseda car three yearsago at a price of $21,950. Today the car's estimatedworth is $ l5,l 10.
The CompleteCar Cost Guide statesthe annualvariablecost of the car to be $ | ,l 50 per year with insurance
costing$ 1,259per year. For eachyear, Rivera paid $ I 40 for licenseand registrationfeesand he drove the car
about 17,000miles per year. After computingthe car's depreciationand its total annualcost. find the cost per
mile.
A) $0.26
B) $0.28
c) $0.30
D) $0.32
122) DarioCanseco's
variableautomobile
costsfor lastyearwere:gasoline,$1,993.83;
oil andfilters,$230.90;anda
newtire,$89.76.Insurance
cost$1,201.20,
registration
was$120.25;
andtheloaninterest
totaled$3g9.06.
Canseco
droveabout12,560miles.Whatwasthecostpermile for Canseco
to operatehis vehiclelastyear?
A) $0.16
c) $0.32
B) $0z2
D) $0.43
123\ ALGEBRA PaulKim estimates
thathewilldrive about10,000milesduringtheyearandwill have$3,460in
annualfixedcosts.He projectsa costpermile of $0.54or lessfor his truck.Whatis themaximumannualvariable
costhecanhaveto reachhis projection?
A) $1,650
c) $2,301
B) $1,940
D) $2,500
l9
Name:
ID: A
124) Insteadof purchasing
a newcar,MariaSmitsdecidedto leaseone.Herdepositwas$3,000andherpayments
are
$230permonthfor 60 months.Shealsopaida $90title feeanda $50licensefee.Whatis hertotalleasecost?
A) $15,380
c) sI6,890
B) $16,788
D) $16,940
125) JenniferSosaleaseda newcar.Shepays$300permonthfor 48 months.Shepaida $78title fee,a $l l0 license
fee,andherdepositwas$5,000.Whatis thetotal leasecost?
A) $15,092
C) S19,588
B) $r9,sr0
D) $1s.987
126) EnricoAlonsorecentlyleaseda new luxurycar.His payments
are$658permonthfor 60 months.His depositwas
56,000.He paida $105title feeandan $S0license
fee.Whatis histotalleasecost?
A) $39,761
C) $45,665
B) $42.380
D) $59.71
8
127) MargaretFasoleaseda car. This included36 monthlypayments
of $545,a $4,000deposit,
a $100title fee.anda
$90 licensefee. What is her total leasecost?
A) $23,8r
0
B) $24.390
c) $25,865
D) s26.002
128) VictoriaSantos
recentlyleased
a newconvertible.
The$1599dueat signingincludes
thetitleandlicensefee.Her
monthlyleasepayments
are$700permonth.Theleasingcompany
allows12,000
milesperyearwith a $0.12per
mile overagecharge.If thetotal leasecostis $26,800,for how manymonthsdoesthe leaselast?
A) 24
c) 48
B) 36
D) 60
129) GeraldoCastrorenteda carfor 4 daysat $45.00perday,anddrovethecar600milesat $0.22permile.He spent
a collisionwaiverfor $ I2.00perday.Whatis thetotalcostfor rentingthecar?
$50.00for gasolineandpurchased
A) $23e.00
B) $374.00
c) $388.00
D) $4r0.00
130) RachelPerezrenteda carfor 3 daysat $40.00perday,plus$0.20permile.To protectherselfin caseof an
accident,shepurchased
thecollisiondeductiblefor $10.00perdayandpaid$40.00for gasolineto coverthe500
milesshedrove.Whatwashertotalcostto rentthecar?
A) $265.00
c) $3r0.00
B) $2e0.00
D) $330.00
l3l ) PedroClementerenteda carfor 2 daysat $30.00perday,plus$0.25permile.To protecthimselfin caseof an
accident,he purchased
thecollisiondeductiblefor $10.00perdayandpaid$50.00for gasolineto coverthe700
mileshedrove.Whatwasthetotalcostpermile to rentthecar?
A) $0.38
c) $0.44
B) $0.42
D) $0.49
20
Name:
ID: A
132) BartCarrollrenteda carfor four daysat $40perday,plus$0.22permile.In casehe wasinvolvedin an accident,
he purchased
thecollisiondeductiblefor $l I perdayandpaid$42for gasolineto coverthe 520mileshedrove.
Whatwasthetotal costper mile for Bart to rentthecar?
A) $0.6e
B) $0.72
c) s0.7s
D) $0.7e
133) PattiCreenandherhusbandarepurchasing
a condominium
for $ I 23,000.Theyhave$ I 5,000for a down
payment.Whatis theamountof theirmortgageloan?
A) $108.000
c) $l16,700
B) $l10,850
D) $r20.000
l 34) JackieKesselhasfounda homeshewouldIiketo purchase.
Theselleracceptsheroffer of $210,900.
Jackiewill
makea downpaymentof l5%. Whatis theamountof hermortgageloan?
A) $123,764
c) $180,009
B) $179,265
D) $ I85,000
135) Adam Wilcox is purchasinga homefor $ I 89,000.The bank is willing to financethe purchaseif Wilcox can make
a down paymentof j of the sellingprice.How much moneywill he needfor the down payment?
A) $25,ooo
B) $47,2s0
c) $52,300
D) $56,400
136) LindaGriffith is planningto buyrentalproperg.Shefindsa homepricedat $92,000.Whatis theamountof
Griffith's mortgageloanif a downpaymentof 10%is required?
A) $81,800
c) $82,500
B) $8r.900
D) $82,800
137) HazelineAllen's mortgageloanamountis $87,750.Shefinancedherhousefor 30 yearswith monthlypayments
of
$725.At theendof 30 years.whatwill bethetotalamountof interestcharsed?
A ) $ l l 6 , tl 5
c) $173,250
B) $1s2,72s
D) $26t,ooo
2l
ID: A
Name:
Figure 10.1.Usethis tablewith the question(s)below,as needed.
Monthlv Pavment for a $1.fi)0 Loan
Interest
Rate
6.00%
6.50%
7.00%
750%
8.00%
8.50%
Length of Loan in Years
20
$ 7 .6
1
7.46
7.75
8.06
8.36
8.68
25
$6.44
6.75
7.07
7.39
7.72
8.05
30
$6.00
6.32
6.65
6-99
7.34
7.69
138) UseFigure10.I . Tim andKieshaWoodallpurchased
a homepricedat $ I 86,700.Theyput $28,005downand
financedtherestat 7o/ofor 20 years.Whatis theamountof theirmonthlymortgage
payment?
A) $l,053.90
c) sl,229.93
B) $r.r98.87
D) $1.867.00
139) UseFigure10.1. JamesChu purchased
a homefor $ I 13,400.As a first-timehomeowner,
the bankonly requiresa
50%
downpayment.Therestis financedat 6.5Vofor 30 years.Whatis theamountof hermonthlypayment?
A) $s97.2s
B) $609.50
c) $652.30
D) $680.8s
140) UseFigurel0.l . ShawnFitzgerald
propertyandagrees
findsa suitable
upona sellingpriceof $ 137.900.
The
mortgage
to financetheproperfyfor 30 yearsat \Vo.
companyrequiresa 20o/o
downpaymentandShawnchooses
Whatis thetotalamountof interestcharged,
wholedollar?
roundedto thenearest
A) $137,630
c) $181,190
B) $164,320
D) $187,560
l4l)
Use Figure 10.1.Ruby Taylor decidedto purchasea condominium.Shefound a propertyand the owner accepted
her offer of $ 165,000.The financing companyrequiresa l0o/odown paymentfor a 3O-yearloan at 6%. At the end
of 30 years,what will be the total amountof interestcharged?
A) $ 1 s 4 , 38 9
B ) S1 6 5 . 00 0
c) $167,325
D) $172,260
22
ID: A
Name:
his newhome,he
142) DanMiller hasbeengranteda $120,000mortgageloan.Whensigningthepapersto purchase
will needto paytheclosingcostsshownbelow.Whatarethetotalclosingcosts?
$2s
ApplicationFee
Borrower's Credit check
Points
Appraisal Fee
Title Search
Title lnsurance
Attorney Fee
Documentationstamp
Processingfee
A) $4,235
B) $5,765
65
2%oof Mortsase
350
2ls
450
400
0.30%of Mortsase
1.25%of Mortsase
c) $6,l20
D) $7,340
143) FredLandersandhis brotherareinterested
in purchasing
a housepricedat $310,000.Theyplanto put 30%down
andfinancethe remainingamountthroughAndersonSavings.
AndersonSavingshasthefollowingclosingcosts:
creditreport,$100;appraisal
report,$250;title insurance,
$190;surveyandphotographs,
$275;recordingfees,
how muchcashwill Fredandhis brotherneedto securethe
$70;andlegalfees.$280.If the loanis approved,
loan,including
thedownpayment?
A) $92"2s9
B) $94,165
c) $95,389
D) $97,238
144) Shelly Moyer has been granted a mortgageloan at an annual interest rateof 60/ofor 20 years by PattersonMutual.
The homehasa sellingpriceof $170,000.The bankrequiresa20%odown payment.What are Shelly'sclosing
costs including the down payment?
Credit reDort
Loan orisination fee: 2.0o/oof mortsase
Abstractof title
Attorney fee
Documentationstampfee:0.3ohof mortsase
Processingfee: | . l0o%of mortgage
s70
A) $3s.0r9
c) s39,699
D) $40,t75
B) 539,019
t00
275
145) NahlaBurtoniis buyingherfirst homefor $125,000.Shehasbeengranteda mortgageloanat an annualinterest
rateof 8.5%for 20 yearswith a $25,000downpayment.Closingcostsare2Yoof theamountof themortgageloan
andwill be financedaspartof themortgage.
Whatis theactualamountfinancedwith themortgage?
A) $100.000
c) $120,000
B) $102,000
D) $t25,000
Narne:
lD: A
146) April Segalandhersisterobtained a 2i-year,$ 120.000loanfor theirnewhome.The
interestrateis 7.5yoand
theirmonthlypaymentis $886.I{ow muchof thefirst paymentis for principal?
A) $136
c) sl86
B) $14s
D) $198
147) TonyAddisonobtaineda20-year,$45,000
mortgageloanfrom UnitedSavingswith an interestrateof g.5%.His
monthlypaymentis $390.60.After thefirst payment,whatis thenewprincipitt
A) $41,675.34
c) $44.q28.15
B) $42,3es.68
D) $4s.s78.87
148) CarlitaRodriguezandherbrotherpurchased
a housefor $156,600.
NeighborsCreditUnionfinancedtheir loanfor
30 yearsat 7%owith 20%o
down.Forthefirst monthlypayment,whatis the interest?
A) $630.es
c) $705.es
B) $678.80
D) $730.80
149) The Butler County tax assessordeterminesthat the market value of Greg
Wilson's home is $123,000.The rate of
assessment
in Butler County is 28o/oof market value. What is the assessed
value of Creg's home?
A) $32,720
c) $34.440
B) 532,550
D) $34.840
150) AmandaWolpert'shomein Richmond.
Virginia,hasanassessed
valueof $74,200.
l'he tax ratewhereshelivesis
25.13mills.Whatis herannualrealestate
tax?
A) $1.674.32
c) $1,957.26
B) $1,864.65
D) $I ,964.38
I 5 I ) ReggiePattersonreceiveda tax statementshowing that the marketvalue
of his home is $209,900.The rate of
assessment
in his locality is 40%o.
What is the assessed
valueof Reggie'shome?
A) 543,673
c) $82.728
B) $56"289
D) $83.e60
I 52) ALGEBRA JackandBrendaBushnellpay$2,870.l9 in annualpropertytaxes.The
rateof assessment
for their
tax districtis 54oh,andtheirtax rateis 39.87mills. Whatis theii property'smarketvalue?
A) $127,89t.77
c) $138.761.28
B) $133,312.43
D) $ts2.8Ss.60
153) MelissaDoubet'shomeis insuredfor 90voof its replacement
valueof g94,000,
or $g4,600.
Usethechartbelowto
determine
theamountof coverage
for herpersonalproperty.
I!,!u rance Coverage Chart
Coverage
Percentof Coverase
Garageand other structures
t5%
Lossofuse
30%
Personalproperty
60%
A) $47,328
B) $49,970
c) $50,760
D) $51,276
24
ID: A
Name:
valueof $155,000.
Usethechartbelowto
154) CristinaSuarezhasinsuredherhomefor 80%of its replacement
determine
for herpersonalproperty.
theamountof coverage
Insurance Coverage Chart
PercentofCoverase
Coverage
Garase and other structures
20%
Loss of use
2 s%
45%
Personalproper$
c) $66,900
D) $67,500
A) $55,800
B) $58,200
155) Dave Amata and his family purchaseda new home that hasan estimatedreplacementvalue of $275,000.They
want to insuretheir home for 85% of its replacementvalue. What is the amountof the coverageon their home?
C) $228,665
A) 5217,786
B) $223.14s
D) $233.750
Figure 103. Use this table with the question(s) below, as needed.
Homeowners Insurance Premiums
Annual Premiums for a T vpical Homeowners )olicv
Fire Protection Class
Amount of
Insurance
Coverage
Brick / Masonrv Veneer
9
l0
ll
1-6 7 -8
l-6
Wood Frame
7-8
9
l0
ll
$ 40.000 $ 66 $ 1 7 0 $ 2 2 s $ 2 3 7 $ 270 $ 1 7 8 s 1 8 3 $ 2 3 7 $ 248 $ 28s
45,000 I J
r78
244 280 t 8 7 l 9 l
248 260 298
50.000 7 8 t 8 3 241 254 290 1 9 0 r 9 5 254 265 304
t96 259 273 3 1 3 205 2 1 1 273 287 328
60,000
9l
343 225 231 299 3 r 5 360
70.000 213 2t6 285 299
80,000 241 248 328 343 394 2 5 7 265 343 363 415
90,000 268 276 3 6 5 3 8 4 441 289 296 3 8 4 403 464
r00.000 298 307 401 426 490 320 329 426 449 5 1 5
120,000 354 364 484 s08 584 3 8 1 391 508 534 6t4
150.000 459 4 7 1 625 657 7 5 5 493 5 0 6 6 5 7 692 794
200,000 6 t 6 633 8 4 1 884 017 662 680 884 9 3 t 1 . 0 7 0
250.000 t J l
7 5 4 9 6 1 1,021 167 780 198 1 , 0 2 11 , 0 8 61,243
300.000 879 9 0 r 1 . 1 4 71 . 2 1 8 ,394 931 953 1 , 2 t 8 1,295 1 . 4 8 3
400.000 1.02
r 1,045 1,331 1 , 4 1 3 617 1.067 1 . 1 0 51 . 4 1 3I , 5 0 4 t . 7 2 3
500.000 r,3 0 9 1.340 1 , 7 0 71 . 8 1 22,074 r , 3 8 51 , 4 1 81 , 8 l 2 1,929 2,209
value,or $90.000.Thehomeis
of its $ 100,000replacement
I 56) UseFigure10.3.JulieArco'shomeis insuredfor 9Ao/o
protection
insurance
premium?
is
rated
in
fire
class
8.
What
is
Julie's
wood-frame
and
annual
of
construction
C) S3o5
A) $2r 8
D) $673
B) $296
25
ID: A
Name:
homeon LakeMichigan.It is insuredfor 80%of its
157) UseFigure10.3.LouisePonceandherfamilyowna vacation
construction
andhasbeenratedfire protectionclass10.
value.Thehomehasa wood-frame
$ 150,000replacement
premium?
Whatis theamountof coverage
for lossof use?Whatis theannualinsurance
A) $120,000;
C)
$150,000;
$657
$508
B) $120,000;
D) $150,000;
$692
$534
valueof $3I 2,500.He purchased
I 58) UseFigureI 0.3.RamonSheenownsa homethathasa replacement
a
policy
for
80%
its
replacement
value.
home
brick
and
is
rated
homeowner's
of
The
is of
construction
fire
protectionclass4. Whatis his annualinsurance
premium?
A) $627
c) $6s7
B) $633
D) $737
159) UseFigure| 0.3. EmmaCampohasinsuredherhousefor 90%o
of its $ 100,000replacement
value.Thehouseis of
premium?
wood-frame
construction
andis ratedfire protectionclassI l. Whatis Emma'sannualinsurance
A) $123
c) s464
B) $243
D) $s63
160) CesarSantiagorecordedhis housingexpensesfor the month of Septemberas follows: $575.16for mortgage
payment,523.70for insurancepremium, $87.40for real estatetaxes,$76.36for electricity, $2 I . I 8 for telephone
service,and $19.30for water. What is his total monthly housingcost?
A) $s63.00
B) $783.r0
c) $803.10
D) Set2.07
161) Craig Allen is consideringpurchasinga new home.He estimatesthe following monthlyhousingexpenses:
$9'12.45for his mortgagepayment.$27.75for his insurancepremium,$95.25for real estatetaxes,$98.64for
electricity, $44.40for telephoneservice,and $ I L20 for water. What is his total monthly housingcost?
A) $1,249.69
B) $ I ,945.25
c) $t,985.24
D) $2,458.61
162) RobertoAnaya and his wife plan to rent a condominiumfor $725 per month. They pay a $125 monthly fee for all
of the maintenance
work. Theirannualexpenses
are insurance$468,lost interest,$129:and utility bills, $3,000.
Whatis his average
monthlyexpense?
A) $1,139.00
B) $t,149.75
c) $1,389.70
D) $1,410.00
26
ID: A
Name:
theannualexpense
will beasshownon
for $1,090permonth.Sheestimates
163) Lisa Berryplansto rentan apartment
thechartbelow.Whatis heraverasemonthlycost?
Annual Renter's Exoenses
Loss of Interest
$es
480
Renter'sInsurance
Electricitv
1.975
Heatins(gas)
InterneVCableTV
Cell Phone
r,200
A) $4s6.2s
B) $894.50
r .050
675
c) $1,365.50
D) S1,546.25
164) Tina Avallone and her husbandare buying a $219,000home.Their annualhousingexpensesare: mortgage
payments,$15,400;real estatetaxes,$3,600;annualhomeowner'sinsurancepremium,$1,895;maintenance
on
the home,$3,200;and utilities,$3,980.The lost intereston the down paymentis $1,001and the tax savingsis
S1,976.What is their averagemonthlyexpense?
C) $2,258.33
A) $1,985.66
B) $2,109.67
D) $3,78s.40
Matching
Match the.follctwingterms with the descriptions.
A)
B)
C)
D)
total purchaseprice
unit pricing
comparisonshopping
coupons
E) rebates
F) markdown
C) markdownrate
H) saleprice
165) A techniquethat allows shoppersto compareprices
166) Redeemedat the time of purchase
167) The total sellingprice plus the salestax
168) Discount
169) Regularsellingprice minusthe markdown
170) A percentof the regularsellingprice
l7l)
Locating the bestvalue for your money
172) Redeemedby mailing in a salesslip and specialform
27
ID: A
Name:
Match thefollowing terms with the descriptions.
A) single-paymentloan
B) installmentloan
C) promissorynote
D) ordinary interest
E) exact interest
F) annualpercentagerate
G) maturity value
H) term
173) Is basedon a 360-dayyear.
174) Is basedon a 365-dayyear.
175) The total amountyou must repay.
176) A written statementto pay a certainamounton a specific date in the future.
177) A loan that is repaid in equal paymentsover a specifiedperiod of time.
178) An index which showsthe cost of borrowing money on a yearly basis.
179) The amountof time for which the loan is granted.
180) A loan that is repaidwith one paymentafter a specifiedperiod of time.
Match thefollowing terms with the descriptionsA)
B)
C)
D)
sticker price
baseprice
destinationcharge
variablecosts
E)
F)
G)
H)
fixed costs
dePreciation
closed-endedlease
open-endedlease
181) Also knownas MSRP
182) Includesinsurance,registrationfees,loan interestand depreciation
I 83) The decreasein the value of your vehicle from one year to the next
184) Requiredby law to be displayedon a new vehicle'swindow
as the numberof milesdriven increase
185) Increases
186) A contractallowing you to usea car for a set time period
187) Allows you to buy the car at the end of the leaseperiod
188) The cost of shippingthe vehicle from the factory to the dealer
28
ID: A
Name:
Match thefollowing terms with the descriptions.
A)
B)
C)
D)
closing costs
assessed
value
tax rate
marketvalue
E) rate of assessment
F) personalliabiliry coverage
G) loss-of-usecoverage
H) medical coverage
189) Often expressedin mills per dollar
190) Protectsyou as a homeownerfrom accidentscausedby negligence
l9l ) May include feesfor the propertysurvey,loan application,and points
192> Paysfor hospitalexpensesfor nonfamily membersinjured on your property
193) Paysfor expensesfor living away from home while your damagedhome is being repaired
194) A percentof the properQr'smarket value that is taxed
195) The price to buy or sell a property
196) The dollar value assignedto a propertyfor taxation purposes
29