Topic Test Answers

Without buying points, a monthly mortgage payment will be $1,250. Buying 1 point at closing would reduce the payment to $1,236. To the nearest year, how long would it take to break even by buying 1 point, with a $100,000 mortgage? a. 5 years b. 6 years c. 7 years d. 8 years Please select the best answer from the choices provided

Which of the following is an advantage of renting?a.ease of mobilityb.economic gainc.financial riskd.tax savings

The Picketts have lived in their house for about 13 years. They like to keep a well-maintained property and have noticed that the paint on the exterior of their house is starting to peel. They get two bids for painting services from two different contractors. Based on the fee schedule below, which option would be the cheapest and by how much?Handyman’s Paint ServicePainting Plus Service$2250 all supplies and labor included for a 2-day jobTwo day job estimate $300 preparation work $765 labor per day $225 paint and suppliesa.Painting Plus Service would be cheaper by $960b.Painting Plus Service would be cheaper by $195c.Handyman’s Paint Service would be cheaper by $105d.Handyman’s Paint Service would be cheaper by $195

The climate in which Jonah lives is mild all year long except during the hotter summer months. For 3 months out of the year, Jonah needs to use 4 portable fans to cool his home. If the electricity to use one fan costs 1 cent per hour and each fan is on for about 96 hours per month, what is his total electricity cost for the fans during one year? a.$6.72b.$3.84c.$11.52d.$2.88

Three friends decide to rent an apartment and split the cost evenly. They each paid $640 towards the total move in cost of first and last month's rent and a security deposit. If rent is $650 per month, how much was the security deposit? a. $10 b. $207 c. $620 d. $1,270 Please select the best answer from the choices provided

Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with a monthly income of $3,200.a.$256b.$512c.$640d.$896

Think for a moment of the description of what the traveler saw in “Ozymandias.” Now provide your own brief description of other images, sights, sounds, and smells—things beyond “the decay / Of that colossal wreck”—which might have been part of that physical setting.

The Johnsons are buying a house that costs $210,000 and can afford a 20% down payment. If the Johnsons want the lowest monthly payment, which loan option would you recommend?a.30 year FHA, 3.5% down at a fixed rate of 6.25%b.30 year fixed, 20% down at a fixed rate of 6%c.30 year fixed, 10% down at a fixed rate of 6%d.15 year fixed, 20% down at a fixed rate 5.5%

Keyon and two of his friends are going to rent a 3 bedroom apartment for $840 a month. The security deposit is $500 and the pet deposit is $265. In addition to the deposits, Keyon and his friends must pay first and last month's rent. If they split the cost evenly, how much will each pay to move in? a. $535 b. $613 c. $727 d. $815 Please select the best answer from the choices provided

Jack is trying to determine how he can save money by cutting his electricity bill. He is currently on a standard use plan for electricity and pays 7.5 cents per kWh. He keeps track of when he uses electricity and is thinking about switching to an interval use plan for electricity which costs 3 cents per kWh for off-peak use and 15 cents per kWh for on-peak use. Off-peak hours are from 8PM - 8AM and on-peak hours are from 8AM - 8PM. Below is the chart of his electricity usage:Jack’s Electricity Usage Per Month1200 kWh between 8PM and 8AM400 kWh between 8AM and 8PMExplain and justify which plan would best suit his needs.a.Jack should not switch to the interval use plan, which would cost $24 more per month.b.Jack should switch to the interval use plan, which would save him $24 per month.c.Jack should switch to the interval use plan, which would save him $96 per month.d.Jack should not switch to the interval use plan, which would cost $96 more per month.

You work for a lender that requires a 15% down payment and uses the standard debt-to-income ratio to determine a person's eligibility for a home loan. Of the following, choose the person that you would rate the highest on their eligibility for a home loan. Person A Person B Person C Person D home value $95,000 $107,000 $120,000 $128,000 income $46,000 $53,000 $58,000 $60,000 savings $20,000 $13,910 $18,000 $19,200 recurring debt $310 $198 $265 $400 a. Person A b. Person B c. Person C d. Person D Please select the best answer from the choices provided

Anna is trying to save some money on her electric bill. Her electric company has come up with a new plan designed to charge customers based on when they use electricity. She is trying to decide if the new interval use plan would be better than the standard use plan for her needs. Calculate the monthly costs of both plans if she uses 1,185 kWh of electricity per month with 500 kWh on-peak usage and the rest off-peak usage.Standard Use PlanInterval Use Plan8.5 cents/kWh for the first 600 kWh11 cents/kWh for anything over 600 kWhOn-peak hours - 16 cents/kWhOff-peak hours - 4 cents/kWha.standard use plan - $64.35; interval use plan - $80.00b.standard use plan - $115.35; interval use plan - $107.40c.standard use plan - $64.35; interval use plan - $107.40d.standard use plan - $115.35; interval use plan - $80.00

Shanika and Vanesa are comparing their electric bills for the past month. Shanika is on a standard use plan and Vanesa is on an interval use plan. Each person’s usage is listed on the chart below:Standard Use PlanInterval Use Plan7.5 cents/kWh for the first 400 kWh10 cents/kWh for the next 400 kWh12.5 cents/kWh for anything over 800 kWhOn-peak hours - 15 cents/kWhOff-peak hours - 3 cents/kWhBoth women use 1,325 kWh for the given 30 day period. Vanesa uses 500 kWh during on-peak hours and 825 during off-peak hours. Which person ends up paying more for their utilities? How much more?a.Vanesa pays $35.88 more than Shanika.b.Vanesa pays $99.75 more than Shanika.c.Shanika pays $35.88 more than Vanesa.d.Shanika pays $99.75 more than Vanesa.

Describe what is meant by the statement “Renting can restrict ones lifestyle.”