Cumulative Exam — Unit test Answers

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

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

Using technology, determine the semi-annual payment on a 3 year loan of $8,561 at 9.1% compounded semi-annually. Round your answer to the nearest cent.a.$1,662.47c.$1,925.92b.$1,914.11d.$1,991.12

The National Science Foundation (NSF) offers grants to students who are interested in pursuing a college education. The student must be enrolled full time (12 credit hours or more), and hold a grade point average of 3.8. The NSF will pay $9,500 per year towards tuition for 4 years. The initial amount is placed into an account paying 7.8% compounded annually, and the tuition is drawn from the account until the remaining balance is zero dollars. Determine the initial amount invested by the NSF. Round your answer to the nearest dollar.a.$30,000c.$35,036b.$31,606d.$38,000

Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?

This table can be used to organize Gigi’s credit card balances and payments over 6 months. The annual percentage rate on the credit card is 14%.Gigi’s Credit Card PaymentsMonthBalancePaymentInterest RateInterest Charged1$650$3000.01167$4.082$354.08$500.01167 3$307.63$500.01167 4$260.64$500.01167 5$213.10$500.01167 6$165$500.01167 What is the amount of interest charged for the first 6 months?$

The following table shows a portion of a three-year amortization schedule. After two years, how much has been paid into interest? a. $4,628.14 b. $1,246.10 c. $978.96 d. $1,912.05 Please select the best answer from the choices provided

Which factors positively affect lifetime income? Check all that apply.

Jolene is graduating from high school in May. She received this offer from a university. Financial Analysis for UniversityCosts per YearFinancial Aid Package per YearTuition & FeesScholarships & Grants$9,800$11,000Room & BoardWork-Study$12,500$5,000Which statements about the offer are true? Check all that apply.

Tim needs a new car while he attends college in the United States for the next three years. The car he would like has a MSRP of $15,000. A local dealer can get him a 3-year loan with a 7% interest rate if Tim can give them a $1,500 down payment. The same dealer offers the same car to lease with a money factor of 0.00271 and a residual value of 75%. The lease requires an additional fee of $1,250 to cover Tim’s security deposit and the acquisition and documentation fees for the car. Tim is looking to drive the car home with the smallest initial out-of-pocket cost. Which of the following statements is true?a.The initial out-of-pocket cost is less for the lease.b.The initial out-of-pocket cost is less for the loan. c.The initial out-of-pocket cost is the same for the lease and loan.d.The initial out-of-pocket cost for a lease is not comparable to that of a loan.

The table shows a schedule of the first year of Kamil’s payment plan for a car. Kamil’s Payment Plan for the First YearYearBalanceMonthly PaymentEnd of YearBalance1$13,086.72$363.52$8,724.48 How many years will it take Kamil to pay off the loan?

Ralph is leasing a car worth $24,000 for three years. His leasing company says that the car Ralph is leasing will only be worth $16,000 at the end of his lease. Approximately what percentage of the car’s original value will Ralph need to pay as part of his lease?a.8%b.16%c.33%d.67%

Holly plans to attend community college next year. Her expenses are only $1,200 because her parents are paying the rest. Holly earned a $750 scholarship. How much will she need to pay from her savings?

The following table shows a portion of a four-year amortization schedule. After twenty-five payments, how much of the principal has been paid off? a. $2,669.28 b. $10,353.25 c. $9,543.97 d. $12,213.25 Please select the best answer from the choices provided