Chapter 2 Review

Front

What is the total cost for parts with tax if the oil filter costs $16.00 and there is a 7% sales tax?

Back

Total cost for parts = $16.00 + (7% of $16.00) = $16.00 + $1.12 = $17.12.

Front

What is the total cost for getting an oil change if labor costs $25.00 and parts cost $17.12?

Back

Total cost = Labor + Parts = $25.00 + $17.12 = $42.12.

Front

What is a down payment?

Back

A down payment is an initial payment made when something is bought on credit, usually expressed as a percentage of the total purchase price.

Front

If a vehicle costs $18,000 and a 20% down payment is made, how much is the down payment?

Back

Down payment = 20% of $18,000 = $3,600.

Front

How do you calculate the amount financed after a down payment?

Back

Amount financed = Purchase price - Down payment.

Front

If a car is purchased for $21,200 with a 15% down payment, what is the down payment amount?

Back

Down payment = 15% of $21,200 = $3,180.

Front

What is the amount financed for a car purchased for $21,200 with a 15% down payment?

Back

Amount financed = $21,200 - $3,180 = $18,020.

Front

What type of vehicle typically incurs the highest repair and maintenance costs?

Back

High-end sports cars typically incur the highest repair and maintenance costs.

Front

What does comprehensive car insurance cover?

Back

Comprehensive car insurance covers damage to your car not involving a collision, such as theft, vandalism, or natural disasters.

Front

What is the purpose of car insurance?

Back

Car insurance provides financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.