Cumulative Exam — Unit test Answers

Charles is going to purchase a new car that has a list price of $21,450. He is planning on trading in his good-condition 2004 Dodge Neon and financing the rest of the cost over three years, paying monthly. His finance plan has an interest rate of 12.28%, compounded monthly. Charles will also be responsible for 6.88% sales tax, a $1,089 vehicle registration fee, and a $124 documentation fee. If the dealer gives Charles 80% of the listed trade-in price on his car, once the financing is paid off, what percent of the total amount paid will the interest be? (Consider the trade-in to be a reduction in the amount paid.) Dodge Cars in Good ConditionModel/Year20042005200620072008Viper$7,068$7,225$7,626$7,901$8,116Neon$6,591$6,777$6,822$7,191$7,440Intrepid$8,285$8,579$8,699$9,030$9,121Dakota$7,578$7,763$7,945$8,313$8,581a.17.64%b.15.67%c.16.70%d.12.86%

Jennifer is leasing a car from a local auto retailer. The terms of the lease include a 9% interest rate for 36 months with a residual value of 57%. The MSRP for the car Jennifer is leasing is $17,500. What will Jennifer’s monthly lease payment be?a.$93.84b.$99.75c.$209.03d.$312.06

Benito’s family is thinking of relocating from Los Angeles to Oakland to save money. They set up a budget comparing the cost of living for both cities. OaklandLos AngelesBudget ItemCostCostHousing$565$1200Food$545$655Health Care$245$495Taxes$450$625Other Necessities$350$495Monthly Total How much money will they save monthly by the move to Oakland?

The Academy for Academic Excellence has just announced their winner for the most successful student in mathematics. This student will receive a grant for their college education as well as national recognition for academic excellence in the field of mathematics. The grant will cover $12,177.17 of the cost of school per year for 5 years. If the initial amount is invested into an account over the five years, paying an annual interest rate of 5.5%, and you are to withdraw from this account until the remaining balance after the 5 years is zero dollars, determine the initial amount of the grant. Round your answer to the nearest dollar.a.$52,000c.$60,886b.$55,200d.$64,235

The following table shows a portion of a three-year amortization schedule. Use the information in the table to decide which of the following statements is true. a. The payment amount changes each month. b. The amount applied to the principal is decreasing each month. c. The amount applied to the principal is increasing each month. d. The amount applied to interest is increasing each month. Please select the best answer from the choices provided

Using technology, determine the quarterly payment on a 4 year loan of $16,231 at 5.1% compounded quarterly. Round your answer to the nearest cent. a. $1,125.69 c. $1,518.85 b. $1,127.86 d. $1,508.31 Please select the best answer from the choices provided

Gaia’s gross pay per month is $2,895. Her deductions are listed in the table.DeductionDollar AmountFederal Income Tax$324State Income Tax$96Social Security $126Medicare $39 What is Gaia’s net pay each month?

Dima called her friend to tell her that she saved 30% on her new skirt at a discount store. Her friend told her that she could have gotten a better deal at a different store that was advertising a sale of off all clothing. If the original price of Dima’s skirt was $54, how much more could she have saved at the store her friend suggested?

Mikkel pays a 4 percent state income tax on his earnings. If he earns $1,867, how much state income tax can he expect to pay?

Which type of training would be considered vocational training?

Mo has a credit card that gives a 3% discount on every purchase. The annual percentage rate on the card is 12%. He is purchasing an electronic reader for $140. Check all that apply.

Sally is near the end of a three year lease on a car with an original MSRP of $38,000. Her leasing company claims that the car is now worth only $28,500. Which percentage represents the residual value of Sally’s leased car?a.25%b.33%c.67%d.75%

What is easy-access credit?

Tetsuo has decided to purchase a new car. He decides to put 10% down and finance the remaining balance. The bank offers Tetsuo a 36 month loan at 6.71%. If the car is valued at $32,000, what will his monthly payments be?a.$983.93c.$782.65b.$885.45d.$688.88

You have just received an inheritance of $28,000 and would like to invest it into an account. The bank offers two investment plans, one for 4 years at 5.8% compounded annually and another for 3 years at 7.083% compounded annually. You want to make equal annual withdrawals from the account over the life time of the loan. Which investment will yield the highest return over the duration of the loan, given that the account will be zeroed out by the end of that period?a.3 year account; $32,056.89c.3 year account; $24,130.77b.4 year account; $42,742.52d.4 year account; $32,174.36

When purchasing her new car, Molly traded in her previous car, which was a Buick in good condition. The dealer offered her 80% of the listed trade-in value for her car, giving her a total of $1,340.80. What was Molly’s previous car?Buick Cars in Good ConditionModel/Year19981999200020012002Century$929$1,086$1,150$1,488$1,595LeSabre$2,075$2,282$2,690$2,935$3,374Regal$1,676$1,794$2,030$2,214$2,566Riviera$1,291$1,455$1,520$1,814$1,959a.1999 LeSabreb.2002 Centuryc.2001 Rivierad.1998 Regal

Joaquin is offered vocational training that will cost $3,000 but will make him eligible for a promotion. Joaquin is trying to decide whether to get the training or put the money in savings for retirement. Which statement is true?

A trade-in is most closely related to which of the following?a.A down payment, because it reduces the amount financed.b.An interest payment, because it represents value given to the dealer.c.The list price, because it is derived from the price of a car.d.Amortization, because it is a way of paying for car financing.

Sally’s parents deposited $15,000 into a college savings account on her third birthday. The account had an interest rate of 9.6% compounded annually. They were hoping that the money would double twice by the time she was 18 years old. Using the rule of 72, will their hopes come true?

Caitlin has finished her schooling and training to be a dental hygienist. She has two job offers that she is considering. Caitlin’s Job Offer Comparison Job 1: Albuquerque, NMJob 2: Ann-Arbor, MISalary$54,000$61,000Benefits$2,500 bonuses,health insurance,401KHealth insurance,401KAverage Monthly Rent & Utilities$925$1,300Which job would offer the best annual income considering the cost of living in each locale?