Quiz about Unit 8 Review - Car Ownership

Question 1

Given below are lease terms at the local dealership. What is the total cash due at signing?Terms:

Length of lease: 18 months

MSRP of the car: $22,750

Purchase value of the car after lease: $16,900

Down payment: $1800

Monthly payment: $425

Security deposit: $400

Acquisition fee: $300

Accepted Answer

$2925

Answer

$2500

Answer

$2250

Answer

$375

Question 2

If the lease factor is given as 0.0030, what interest rate is that equivalent to?

Accepted Answer

7.2%

Answer

2.0%

Answer

1.84%

Answer

4.8%

Question 3

Susan wants to rent a car for 4 days, and she's interested in the loss damage waiver but not the collision damage waiver. If the daily rate is $39 and the LDW is $65, what is her total rental cost?

Accepted Answer

$221

Answer

$257

Answer

$228

Answer

$238

Question 4

Apex Car Share Inc. offers car sharing for a $119 yearly fee plus $19 per hour for the use of its car share. What is the total cost for a person who purchased a car share and used it for 42 hours total time?

Accepted Answer

$917

Answer

$819

Answer

$901

Answer

$717

Question 5

Company A charges $125 annual fee plus $5 per hour car share fee. Company B charges $80 plus $10 per hour. What is the minimum number of hours that a car share needs to be used per year to make company A a better deal?

Accepted Answer

10

Answer

11

Answer

9

Answer

6

Question 6

A new car has a sticker price of $25,750, while the invoice price paid on it was $21,950. What is the percentage markup?

Accepted Answer

17.31%

Answer

10.45%

Answer

12.76%

Answer

11.56%

Question 7

Eva is purchasing a car whose MSRP is $24,750. She has asked for an upgrade to a premium package for which the cost is $3000. The delivery of this vehicle is an additional $700. Eva will trade in her own car, and the dealer has offered her $5000. If Eva agrees to this, what will be her total price for the vehicle?

Accepted Answer

$23,450

Answer

$20,150

Answer

$18,450

Answer

$15,750

Question 8

In the monthly payment formula $$M=\frac{\Pr\left(1+r\right)^n}{\left(1+r\right)-1}$$ what value would you put for r if the interest rate is 4.2%?

Accepted Answer

0.0035

Answer

4.2

Answer

0.42

Answer

0.0042

Question 9

What would a monthly payment be on a purchase of a $11,000 car at 6.9% for 3 years?

Accepted Answer

$339.15

Answer

-$344.19

Answer

$334.39

Answer

$344.19

Question 10

An increase in which of the following will decrease the monthly payment?

Accepted Answer

Trade-in Value

Answer

Interest Rate

Answer

Principal

Answer

None of these

Question 11

Millie decided to purchase a $17,000 MSRP vehicle at a 4% interest rate for 6 years. The dealership offered her a $2700 cash-back incentive, which she accepted. If she takes all these factors into consideration, what monthly payment amount can she expect?

Accepted Answer

$223.73

Answer

$235.51

Answer

$274.61

Answer

$243.25

Question 12

Robert purchased a 2010 model sedan for $16,000. The dealership offered him a $99/month payment for 60 months, after which the unpaid balance is due. If the interest rate is 6%, find the balloon payment due at the end of 60 months.

Accepted Answer

$14,674.37

Answer

$17,513.12

Answer

$18,153.21

Answer

$15,000

Question 13

Which two numbers go into calculating a vehicle's miles per gallon?

Accepted Answer

Miles traveled and gallons used

Answer

Distance and time

Answer

Speed and number of hours traveled

Answer

Months and gallons used

Question 14

If Ray's car gets an average of 32 mpg and he fills his tank with 18.6 gallons of gas, how far can Ray travel on a tank of gas?

Accepted Answer

595 miles

Answer

589 miles

Answer

532 miles

Answer

398 miles

Question 15

Dean's company offers a reimbursement package of $0.59 per mile plus $275 a year for maintenance. If x represents the number of miles, which equation below models C, the total amount of reimbursement the company offers?

Accepted Answer

C = 0.59x + 275

Answer

C = 59x + 275

Answer

C = 59 + 275x

Answer

C = 0.59 + 275x

Question 16

A car depreciated $1500 each year it was owned and driven. What type of depreciation is this?

Accepted Answer

Straight-line depreciation

Answer

Flat depreciation

Answer

Accelerated depreciation

Answer

Curved-line depreciation

Question 17

Karen purchased a used vehicle that depreciates under a straight-line method. The initial value of the car is $4400, and the salvage value is $800. If the car is expected to have a useful life of another 6 years, how much will it depreciate each year?

Accepted Answer

$600

Answer

$800

Answer

$5000

Answer

$1000

Question 18

A car purchased for $15,000 depreciates under a straight-line method in the amount of $950 each year. Which equation below best models this depreciation?

Accepted Answer

y = 15000 - 950x

Answer

y = 15000x - 950

Answer

y = 15000 + 950x

Answer

y = 15000x + 950

Question 19

Clarissa's car is valued at $14,000, and she owes $7,000 on it. What is her current equity?

Accepted Answer

$7000

Answer

$4000

Answer

$26,000

Answer

$24,000

Question 20

When it comes to equity, what does it mean to have negative equity, or be "underwater"? (or "upside down")

Accepted Answer

The amount owed is greater than the car's worth.

Answer

The purchase price is too big to qualify for a loan.

Answer

The car's worth is greater than amount owed.

Answer

You can no longer afford to make payments.

Question 21

A scale drawn on the map shows that 1 inch represents 40 miles. If two cities are 2.25 inches apart on the map, what is the distance between them in real life?

Accepted Answer

90 miles

Answer

60 miles

Answer

70 miles

Answer

100 miles

Question 22

William is planning on driving his car to the family reunion. The distance to the meeting place is 602 miles. If his car gets 32 mpg, how many gallons of gas will he need?

Accepted Answer

18.8

Answer

29.9

Answer

23.7

Answer

49.9

Question 23

Suppose you travel at 50 mph for 201 miles. How many hours will it take you to reach your destination?

Accepted Answer

4.02 hours

Answer

3.05 hours

Answer

5.3 hours

Answer

1.05 hours

Question 24

Mary is booking a 4-night stay at a hotel. The rate is $79 per room plus tax. If state tax is 6%, city tax is 2%, and municipal tax is 1%, what is her total lodging cost?

Accepted Answer

$344.44

Answer

$318.00

Answer

$328.62

Answer

$243.12

Question 25

Juan is going to take a flight from Orlando, Florida, to Los Angeles, California. The flight leaves Orlando at 9:15 a.m. Orlando time and arrives in Los Angeles at 1:20 p.m. Los Angeles time. If Orlando is in the eastern time zone and Los Angeles is in the Pacific time zone, how long is the flight? Use the following to help you answer the question 12:00 p.m. eastern time = 11:00 a.m. central time = 10:00 a.m. mountain time = 9:00 a.m. Pacific time.

Accepted Answer

7 h 05 min

Answer

3 h 15 min

Answer

5 h 15 min

Answer

4 h 15 min

Unit 8 Review - Car Ownership

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