CM Ch. 1 Quiz 1

a reduction in the value of an asset over time is called

• appreciation

• depreciation

• inflation

Most people cannot afford to pay for a new car in one day. Instead, people pay the cost over time, but sellers require a certain amount of money the day you buy it. This is called what?

• downpayment

• VIN

• insurance

• lease

What does Liability Insurance protect against?

• Claims resulting from personal injury or property damage due to an auto accident

• Damage caused by natural disasters

• Damage to your car from a collision

• Theft of the vehicle

What is Collision Insurance designed to cover?

• Damage to your car resulting from a collision

• Medical expenses from personal injuries

• Damage from hitting an animal

• Losses from theft or vandalism

Ann Davidson saves $265 monthly for a new car and has saved this amount for 3 years. Find the total amount she has saved.

• $8,540
• $9,540
• $10,540
• $9,040

A car is priced at $12,775 and the sales tax is 4.5%. Find the sales tax.

• $574.88

• $450.50
• $600.75
• $500.25

Sally puts $2100 down on a car. She is going to have a monthly payment of $425 for 24 months. What is the total cost of the car?

• $9000
• $12300
• $15000
• $11000

The original cost of a vehicle is $16,000. The current value is $11,200. The car has been owned for 2 year. Find the average annual depreciation.

• $1,600
• $2,400
• $4,800
• $3,200

Bill was in a fender bender. The amount of damage is $79.90. How much will the insurance pay if there is a $50 deductible?

• $29.90
• $19.90
• $59.90
• $39.90

How much more a year is a 100 deductible at $48 than a $250 deductible at $25? What percent is the 250 deductible of the 100 deductible price?

• $150, 70%
• $200, 60%
• $324, 45.67%
• $23, 52%