Financial Algebra 2 Midterm Exam

Billy's annual premium is $1,284.00. If there is a $1 per payment surcharge (extra fee), what is the monthly payment?

• 214.75

• $204.08

• $107.08

• $107.75

Stan has $10,000 worth of property damage liability insurance. He caused an accident that damaged a $2,000 fire hydrant and did $5,600 worth of damage to another car. How much of the damage must Stan pay?

• $2000

• $7,600

• $5,600

• $0

Maria has collision insurance with a $1000 deductible. Maria backs her car into a lamppost and causes $4,300 worth of damage to the car. How much will her insurance company have to pay?

• $3,300

• $5,300

• $1,000

• $4,300

Luis was in an auto accident caused by his negligence. He has 100/300 bodily injury insurance. The three people injured in the accident sued. One person was awarded $140,000, and each of the other two was awarded $75,000. How much does Luis have to pay?

• $150,000

• $40,000

• $100,000

• $175,000

Rachel has $25,000 worth of property damage insurance. She causes $32,000 worth of damage to a sports car in an accident. How much of the damage will the insurance company have to pay?

• $18,000

• $7,000

• $25,000

• $32,000

Rachel has $25,000 worth of property damage insurance. She causes $32,000 worth of damage to a sports car in an accident. How much of the damage will Rachel have to pay?

• $7,000

• $18,000

• $25,000

• $5,050

Suppose that you purchase a car for $27,000. According to your online research, this make and model of car loses all of its marketable value after 12 years. That is, it depreciates to a value of zero dollars 12 years after the purchase date. If this car depreciates in a straight-line form, what are the coordinates of the intercepts of the depreciation equation?

• (27,000, 0), (12, 0)

• (0, 27,000), (0, 12)

• (27,000, 12), (0, 0)

• (0, 27,000), (12, 0)

Suppose that you purchase a car for $27,000. According to your online research, this make and model of car loses all of its marketable value after 12 years. That is, it depreciates to a value of zero dollars 12 years after the purchase date. If this car depreciates in a straight line form, what is the slope of the depreciation equation?

• -2,250/1

• 27000/12

• 12/-27,000

• 1/-2,250

If the slope is -2,250 and the y-intercept is 27,000. The equation of the line is

• y=27,000x + -2,250

• y=2,250x + 27,000

• y=-27,000x + -2,250

• y=-2,250x + 27,000

The straight line depreciation equation for a car is y = -4000x + 32,000. In about how many years will the car's value decrease by 25%?

• 3 years

• 2 years

• 4 years

• answer not given