Unit 14 Review

What is the monthly cost of living at your current residence?

• $1,460.00

• $1,300.00

• $1,253.34

• $1,283.75

What is the expected monthly cost of living at your new residence?

• $1,072.08

• $1,300.00

• $1,565.00

• $1,265.83

Based on the last 2 questions, which has a lower cost of living, your current residence or your new residence?

• Current Residence

• New Residence

• They are the same cost

Match each term with its description.

• renting

• 
  involves a pre-determined period of time with specific conditions and required maintenance

• buying

• 
  involves a short period of time for the temporary use of an asset

• leasing

• 
  involves a title of ownership with specific taxes and payments required

Match each equity amount to one of the given scenarios.

• $50,000

• 
  You purchased a home for $150,000 and it is now valued at $170,000.

• $20,000

• You purchased a home for $234,000 and it is now valued at $284,000.

• $22,000

• You purchased a home for $193,000 and it is now valued at $215,000.

Your car insurance is due annually and generally costs about $2,000. You decide that you would like to set aside a monthly amount, beginning in January, to be prepared for when this bill comes at the end of the year. How much should you set aside each month?

• $166.67

• $2,000

• $333.33

• $24,000

Suppose you need to decide between an apartment that costs $950/month for a month-to-month contract, or $800/month for an annual contract. The annual contract includes a 2-month early termination penalty if you leave before 12 months.

Which option would be more cost effective if you plan to stay for only 8 months?

• For 8 months, the total rent is the same, so neither is more cost effective than the other.

• It is always more cost effective to not pay a penalty.

• The month-to-month contract is more cost effective.

• The annual contract is more cost effective.

Suppose you are considering an apartment and are given the option to pay $450/month plus utilities, or you can pay $625/month with the utilities included.

You spoke with a previous tenant (someone who lived in this apartment) and they told you that they spent about $200/month on utilities each month.

Which option is most likely to be more cost effective?

• The total cost will be the same, so neither option is more cost effective.

• It is not possible to determine the answer without knowing the exact amount of the utilities.

• Paying $450 plus utilities will probably be more cost effective.

• Paying $625 with utilities included will probably be more cost effective.

Based on the scenario, which is more cost effective?

• drive yourself

• public transportation

• they are the same cost

You are planning to rent a townhouse. Your monthly rent will be $850, and your renter's insurance will be $2,000 per year. What is the adjusted monthly cost for renting this townhouse?

• $1,016.67

• $12,200

• $237.50

• $5,683.33