Finacial Algebra Chapter 4.1 & 4.3 Quiz Review

Ruth buys a car for $48,668, and must pay her state 6% sales tax on the sale. How much she will pay in sales tax?

• $2.92

• $29,200.80

• $2,920.08

• $51,588.08

Gary has $10,000 worth of property damage insurance. He collides with two parked cars and causes $12,000 worth of damage. How much money must Gary pay after the insurance company pays its share?

• $10,000

• $12,000

• $1,000

• $2,000

Kaylee has 100/300/50 liability insurance and $50,000 PIP insurance. She drives through a stop sign, hits a telephone pole, and ricochets into a minivan.The pole will cost $7,000 to replace. Kaylee also did $6,700 worth of damage to the minivan. How much will the company pay?

• $7,000

• $13,700

• $300

• $6,700

The amount you have to pay on Collision and Comprehensive Insurance before the insurance company pays anything is called the deductible.

• True

• False

The money you pay for insurance is called a premium.

• True

• False

Martin has $10,000 Property Damage coverage and $10,000 Collision coverage with a $500 deductible. He causes an accident. The other car has damages totalling $4,500. His car has $1,750 to his own car. Insurance will pay for this accident?

• $6,300

• $2,032

• $5,800

• $5,750

If you injure someone in an accident that you cause, you are liable for the costs resulting from the injuries.

• True

• False

Sales tax is __________ to the price

• subtracted

• added

• multiplied

• divided

David Padilla has $10,000 worth of property damage insurance. He collides with two cars and causes $12,000 worth of damage. How much money must David pay after the insurance company pays its share?

• $2,000

• $12,000

• $10,000

• $0

Suzy Hernandez has 100/300/50 liability insurance. She drives through a stop sign and hits a telephone pole and bounces into a school bus with a bunch of little kids in it. Some are seriously hurt and sue her. Others have minor injuries.

The telephone will cost $10,000 to replace. She also did $11,500 worth of damage to the bus. How much will the insurance company pay in liability to fix the damage?

• $0

• $10,000

• $11,500

• $21,500