Math Apps Unit 4 Part 1: Autos

If you need an automobile, you can use any of the following methods EXCEPT:

• Rent

• Lease

• Purchase with cash or take out a Loan

• Insurance

Select ALL of the following that are reasons you must have auto insurance if you are a driver:

• It is required by Pennsylvania law

• It helps you pay for repairs if you are in an accident.

• It helps pay medical bills if you injure someone with your vehicle.

• It helps pay your car payment if you are short on money.

Suppose you go on a one week vacation to Hawaii. While there you want a car to drive so you do not have to use public transportation. Which one of the following is the most logical method to use to get a car to drive while in Hawaii?

• Rent a car

• Lease a car

• Purchase a car with cash

• Take out a 5 year loan to purchase the car

Marcus makes $36,800.00 per year. Examine his budget in the image and determine if he is following the 20/10 rule or not.

• Yes, he is following the 20/10 rule

• No, he is not following the 20/10 Rule

Kameron makes $4300 per month. Examine her debts in the image and determine if she is following the 20/10 rule or not.

• Yes, she is following the 20/10 rule

• No, she is not following the 20/10 Rule

Terrance has a net pay of $4,800 per month. Using the 20/10 rule, what is the most he should pay each month for non-essential payments (total)?

Mathematical Equivalence

ON

Monique has a net pay of $74,890.00 per year. Using the 20/10 rule, she should not have more than $______ in non-essential debt.

Mathematical Equivalence

ON

Dara wants to purchase a new sports car as seen in the image. It's rare but notice that due to short supply, the cost of the car is more than the Manufacturer's Suggested Retail Price. She knows she will not be able to negotiate a better price. She has a down payment of $10,000. and has secured a loan for 60 months at 4.2% APR. What is her monthly payment (nearest penny)?

• $1573.33

• $1803.24

• $1298.72

• $987.99

Dara purchases the Corvette and has a monthly payment of $1803.24 for the next 60 months. If you include the 10,000 down payment, how much money total is she paying for this sports car?

• $118,194.40

• $316,388.80

• $74,916.64

• $127,544.23

Dara borrowed $97,436.00 to buy this Corvette (remember she paid $10,000 down on the car). Since she paid $1803.24 a month for 60 months, how much money did she pay in interest charges?

• $8757.90

• $10,819.44

• $16,239.33

• $10,758.40