AnswersAdvanced Financial AlgebraHousing Options and Related Expenses

Practice Test Answers

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2
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How much equity is built after the second payment?

A
203 point 4 7 dollars
B
401 point 8 1 dollars
C
198 point 3 4 dollars
D
99 dollars comma 598 point 1 9
3

At year 30 , what is the approximate difference in total cost between homeownership and renting?

A
15 dollars comma 000
B
20 dollars comma 000
C
25 dollars comma 000
D
10 dollars comma 000
4

Luciana has a monthly income of $5,123 After accounting for all her expenses, she has set aside 29% of her income for rent. She finds an apartment that costs $1,480 per month. Does this fit within her budget for rent?

A
It is slightly over her budgeted amount.
B
It is way under her budgeted amount.
C
It is way over her budgeted amount.
D
It is slightly lower than her budgeted amount.
5

Desmond is reviewing home insurance options. Policy X costs $⁢1,500 annually with a deductible of $⁢750 Policy Y costs $⁢1,300 annually with a deductible of $⁢1,500 An estimated repair cost from potential damages is $⁢3,000 Which policy offers a lower overall cost if a claim is made this year?

A
Policy X, with a total cost of 2 dollars comma 000
B
Policy X, with a total cost of 2 dollars comma 250
C
Policy Y, with a total cost of 2 dollars comma 300
D
Policy Y, with a total cost of 2 dollars comma 800
9

What is the central angle for the food sector in his pie chart?

A
54 degrees
B
90 degrees
C
36 degrees
D
72 degrees
12

The ramp has a base that extends 2.1 meters from the building and reaches a height of 1.5 meters. What is the length of the ramp? Also, calculate the cost of the ramp if the material for it costs $⁢10 per meter.

A
The ramp is 2 point 5 8 meters long, and the cost is 25 point 8 0 dollars
B
The ramp is 3 point 6 meters long, and the cost is 36 point 0 0 dollars
C
The ramp is 1 point 5 meters long, and the cost is 26 point 0 0 dollars
D
The ramp is 2 point 1 meters long, and the cost is 25 point 8 0 dollars
13

Which statement about the two mortgage options is true?

A
The total interest paid on the 30-year mortgage is more than twice the total interest paid on the 15-year mortgage.
B
The total amount paid over the life of the 30-year mortgage is less than that of the 15-year mortgage.
C
The monthly payment for the 30-year mortgage is higher than for the 15-year mortgage.
D
The monthly payment for the 30-year mortgage is higher, but it results in a lower total interest paid compared to the 15-year mortgage.

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