Unit Test — Unit test Answers

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%

Which of the following statements is true?a.A 30 year fixed mortgage will always result in the lowest payment.b.You must have at least a 20% down payment to get a competitive interest rate.c.The lower your interest rate is, the lower your monthly payments are.d.The faster you pay off your mortgage, the lower your monthly payments are.

Trudy’s monthly expenses are outlined in the chart below. Trudy’s job pays her $36,000 annually. Determine Trudy’s DTI (debt-to-income) ratio.Trudy's Debt and IncomeIncome:$36,000 (annually)Rent:$695 (monthly)Car Payment$265 (monthly)Student Loan$200 (monthly)Credit Cards$160 (monthly)a.28%b.35%c.37%d.44%

Calculate the monthly payment for a 5-year car loan of $23,570 at 10.43% interest, compounded monthly. a. $247.44 b. $337.56 c. $433.88 d. $505.79 Please select the best answer from the choices provided

Tess is going to purchase a new car that has a list price of $29,190. She is planning on trading in her good-condition 2006 Dodge Dakota and financing the rest of the cost over four years, paying monthly. Her finance plan has an interest rate of 10.73%, compounded monthly. Tess will also be responsible for 7.14% sales tax, a $1,235 vehicle registration fee, and a $97 documentation fee. If the dealer gives Tess 75% of the listed trade-in price on her car, once the financing is paid off, what percent of the total amount paid over four years would be interest? (Consider the trade-in to be a reduction in the amount paid.) Dodge Cars in Good Condition Model/Year 2004 2005 2006 2007 2008 Viper $7,068 $7,225 $7,626 $7,901 $8,116 Neon $6,591 $6,777 $6,822 $7,191 $7,440 Intrepid $8,285 $8,579 $8,699 $9,030 $9,121 Dakota $7,578 $7,763 $7,945 $8,313 $8,581 a. 21.39% b. 19.15% c. 23.43% d. 18.98% Please select the best answer from the choices provided

Ralph is leasing a $32,000 car for 36 months. The terms of his lease include an 8.5% interest rate (money factor of 0.00354) and a residual value of 72%. Determine Ralph’s approximate monthly lease payment.a.$145.00b.$230.40c.$248.89d.$443.73

Of the four consumer protection groups listed below, identify which groups are government agencies and which are non-governmental.I. Better Business BureauII. Consumer Product Safety CommissionIII. Consumers UnionIV. Food and Drug Administrationa.I and II are governmental; III and IV are not.b.II and III are governmental; I and IV are not.c.II and IV are governmental; I and III are not.d.III and IV are governmental; I and II are not.

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

Which of the following is not one of the eight recognized consumer rights?a.right to safetyb.right to choosec.right to be heardd.right to dignity

The following chart shows a store’s coat sales for two years. Identify the percent increase in total sales and the percent increase in sales of jackets. Then find which percent of increase is greater and by how much greater it is than the other. (Round your answer to the nearest tenth.) a. Sales of jackets increased 3.6 percentage points faster than total coat sales. b. Sales of jackets increased 18.8 percentage points faster than total coat sales. c. Total coat sales increased 8.1 percentage points faster than sales of jackets. d. Total coat sales increased 24.5 percentage points faster than sales of jackets. Please select the best answer from the choices provided

Scott is planning to buy a new car. He intends to trade in his existing car, a 2001 Chrysler Concorde in good condition. Using the table below, estimate how much Scott’s car is worth.Chrysler Cars in Good ConditionModel/Year20002001200220032004Pacifica$2,194$2,288$2,605$2,690$2,814Concorde$1,842$1,998$2,180$2,781$2,925Sebring$2,920$3,075$3,260$3,551$3,912300M$2,770$2,934$3,095$3,188$3,676a.$2,781b.$1,842c.$2,288d.$1,998

The following chart shows a store?s records of sales of stuffed toys for two months. Which of the following are accurate assessments of trends displayed in this graph? I. Sales of teddy bears decreased by about 2.9% between September and October. II. The change in sales of rabbits is roughly equal to the change in sales of all toys. III. Roughly 24.1% fewer horses were sold in October than in September. a. I and II b. II only c. I and III d. III only Please select the best answer from the choices provided

Bob would like to get his debt-to-income (DTI) ratio down to 36%. His current monthly expenses are outlined in the chart below. He would like to lower his DTI by paying off some of his credit card debt, lowering his combined minimum monthly credit card payment. What would Bob's minimum monthly credit card payment need to be in order to reach his DTI goal of 36%?Bob's Monthly Debt and Income Housing:Mortgage$1,250.00 (including mortgage insurance and property taxes) Credit:Auto Loan$349.00 Credit Cards (combined)$348.00(minimum) Income:Manager$4,800.00 Interest$130.00 a.$175.80b.$129.00c.$228.00d.$274.80

What is one cost of avoiding insurance?

Valerie is going to purchase a new car. The car she wants has a list price of $32,495. Valerie is planning to make a down payment of $1,877. Furthermore, she plans to trade in her current car, which is a 2006 Hyundai Sonata in good condition. She will finance the rest of the cost by making monthly payments over five years. She can finance the cost at a rate of 8.64%, compounded monthly. She will also have to pay 8.23% sales tax, a $2,243 vehicle registration fee, and a $314 documentation fee. If the dealer gives Valerie 87.5% of the trade-in price on her car, listed below, approximately how much will Valerie pay in total for her new car? (Round all dollar values to the nearest cent, and consider the trade-in to be a reduction in the amount paid.)Hyundai Cars in Good ConditionModel/Year2004200520062007Sonata$6,145$6,520$6,784$7,066Tiburon$6,880$7,144$7,382$7,785Elantra$4,211$4,425$4,598$4,880Accent$5,676$5,828$6,005$6,317a.$37,385b.$38,821c.$38,287d.$36,944