Chapter 6- Sections 6-4 to 6-8-Review

A lease is a contract made between the company that owns a car and the person who will be given the right to use the car.

• True

• False

A car's sticker price is also called the Manufacturer's Suggested Retail Price (MSRP).

• True

• False

The expected value of the car at the end of the lease period called Residual Value.

• True

• False

Which of the following is typically NOT associated with leasing a car?

• Trade -in Value

• Down payment

• Residual value

• Mileage allowed

Which basic homeowners insurance category covers the extra costs of living incurred when your home is unavailable due to damage?

• personal liability

• personal property

• dwelling

• additional living expense

Which basic homeowners insurance category protects you in case of lawsuits by persons injured on your property?

• personal liability

• personal property

• dwelling

• additional living expense

• $469

• $490

• $510

• $625

Rick insures his house for $105,600. The contents are automatically insured for 50% of the total insurance on the house. What is the amount the contents are insured for?

• $53,469

• $52,800

• $43,554

• $62,000

Molly bought a car with an MSRP of $31,248. A 5% sales tax will be charged on the total purchase. Registration and license costs will be $180. What is the delivered price of the car?

Note: delivered price = MSRP price + tax + other fees

• $32,990.40

• $33,800.40

• $43,554.55

• $29,000

• $30,990.40

• $33,800.40

• $35,460

• $29,920.40