AnswersFinancial Math - MA2007Home Ownership

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Mr. and Mrs. Chavez close on a 30 year home loan for $250,000. The monthly payment with no points is $1,580, but if they buy a point it is $1,560. What might you infer if Mr. and Mrs. Chavez choose not to buy a point?

A
They plan to sell the house at the end of 5 years.
B
They plan to sell the house at the end of 10 years.
C
They plan to sell the house at the end of 15 years.
D
They plan to stay in the house at least 30 years.
122
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How do you define self-discovery?

Answer:

Self-discovery is the process of learning who you really are by understanding your values, strengths, beliefs, and goals.

123

Which of the following would have a negative impact on determining eligiblity for a home loan?

A
earning extra income
B
moving into a different apartment
C
paying off credit card debt
D
withdrawing money from savings
124

Latisha found an apartment that she wants to rent. The rent is $675 per month and there is a security deposit of $325. To move in, Latisha must have first month's rent, last month's rent and the security deposit. How much does Latisha need to move in?

A
$1,000
B
$1,325
C
$1,675
D
$2,000
125

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.
126

A lender estimates the closing costs on a home loan of $90,000 as listed below. Closing Cost Charge Loan origination $180 Title insurance $365 Attorney’s fees $795 Inspection $300 Recording fees $120 Escrow $980 The actual closing costs were: Closing Cost Charge Loan origination $180 Title insurance $340 Attorney’s fees $830 Inspection $375 Recording fees $150 Escrow $1,000 Evaluate the lender's good faith estimate as a percentage of the loan amount.

A
The lender made a very good estimate; it was within 0.25% of the actual closing costs.
B
The lender made a fairly good estimate; it was between 0.25% and 0.5% from the actual closing costs.
C
The lender made a somewhat poor estimate; it was between 0.25% and 0.5% from the actual closing costs.
D
The lender made a very poor estimate; it was between 0.5% and 0.75% from the actual closing costs.
127

What mood is evoked in the last two lines of “When I Have Fears That I May Cease to Be”? List some adjectives you could use to describe the character of the poet in this closing.

Answer:

The last two lines evoke a mood of loneliness, resignation, and quiet sadness. The speaker seems reflective and humbled as he stands “on the shore / Of the wide world” and watches love and fame fade into nothingness. Adjectives that describe the poet here include contemplative, somber, isolated, wistful, and resigned.

128

An underutilization of a country’s resources means what?

Answer:

It means the country is not using all of its resources efficiently, so it is producing less than it is capable of producing.

129

A variable that can be modified from anywhere within a program is called a

A
global variable.
B
local variable.
C
specific variable.
D
general variable.
130

Answer the following question in 1-2 complete sentences. Although modern animation and technology have made animation easier to create, which animation skills are still necessary to produce a great work of animation? Provide at least 3 examples.

Answer:

Great animation still requires strong storytelling, an understanding of timing and motion, and the ability to create expressive, believable characters. Drawing and observation skills also help animators make movements and poses feel convincing.

131

Mike has an adjusted gross income of $85,643. He claims two exemptions and can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. If the standard deduction is $5,700 and exemptions are each worth $3,650, what is Mike’s total taxable income?

A
$72,643
B
$75,479
C
$71,829
D
$66,129
132

For most people, almost two-thirds of each work day is taken up by work and sleep.

A
T
B
F
133

Translate the following word into Spanish. salt shaker

Answer:

el salero

134

Given the graph below, determine the average cost of utilities for both Orlando, FL and Indianapolis, IN during the 6 month period between April and September. How does the average monthly utility bill of Orlando, FL compare with the average monthly utility bill of Indianapolis, IN?

Question illustration
A
The average monthly utility bill for Indianapolis, IN is $88.72 more than Orlando, FL.
B
The average monthly utility bill for Indianapolis, IN is $85.33 more than Orlando, FL.
C
The average monthly utility bill for Orlando, FL is $85.33 more than Indianapolis, IN.
D
The average monthly utility bill for Orlando, FL is $88.72 more than Indianapolis, IN.
135

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
136

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.
137

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/kWh

A
standard use plan - $64.35; interval use plan - $80.00
B
standard use plan - $115.35; interval use plan - $107.40
C
standard use plan - $64.35; interval use plan - $107.40
D
standard use plan - $115.35; interval use plan - $80.00
138

Marquet is relocating to an area where she will be attending college. She finds a townhome with an option to rent or buy. The conditions of each are shown below.Rent: Move-in cost of $1,350 and monthly payment of $795.Buy: Move-in cost of $8,235 and monthly payments of $750.Marquet plans to stay in the area for the 5 years it will take her to get a graduate degree, so she decides to buy. Choose the best evaluation of Marquet’s decision.

A
Since the costs would be the same over the 5 year period, she will have made a good decision if the property value does not decrease.
B
She made a fairly good decision. Buying the townhome will be cheaper over the 5 year period as long as she doesn’t have major repairs to make.
C
She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 5 year period.
D
There is not enough information given to determine which option is best.
139

Mr. and Mrs. Yeager want to buy a home valued at $320,000. If they have 15% of this amount saved for a down payment, how much have they saved?

A
$480
B
$4,080
C
$4,800
D
$48,000
140

Julio just bought a $267,900 house. He had a 20 year mortgage with a fixed rate of 5.875%. Julio’s monthly payments are $1,558.09. What percent of the purchase price was Julio’s down payment?

A
13%
B
15%
C
18%
D
20%

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