Chapter 3: Major Purchases Quiz

Calculate the out-the-door price given the following information: Negotiated price: $27,000 Trade-in credits: $1,400 Incentives: $750 Sales tax: $1,500 Total fees: $375

• $22,975

• $24,850

• $26,350

• $26,725

• $28,225

Paige is trading in her 2005 Buick LeSabre for a new car. The dealer is giving her $2,500 in trade-in value, and she is able to successfully negotiate the new car for $12,300. If the tax rate where she lives is 7.5 percent, what amount will she have to pay in sales tax?

• $187.50

• $735.00

• $922.50

• $1,110.00

• $1,254.00

Zach was recently preapproved for a car loan. Which of the following will his approved interest rate be based off of?

• His income and down payment

• His credit report/score

• His down payment

• His credit report/score and income

What does upside down mean in reference to car loans?

• It means a person owes less on a car than it is worth.

• It means a person owes more on a car than it is worth.

• It means a car a person is trading in is worth less than the car she is buying.

• It means a car a person is trading in is worth more than the car she is buying.

• It means the interest rate on a car loan is very high.

No matter what, she will drive 1,000 miles a month and gas will still cost $1.95. Which one should she buy?

• Payment: $210, mpg: 25

• Payment: $180, mpg: 18

• Payment: $250, mpg: 32

• Payment: $200, mpg: 22

• Payment: $190, mpg: 27

Jonathan recently got a new job and needs to adjust his gasoline budget to accommodate a longer commute. He estimates he will drive about 1,200 miles a month. Gasoline averages about $1.95 a gallon where he lives, and his car gets around 27 mpg. What amount should he budget to ensure he has enough money for gas each month?

• $25

• $40

• $45

• $85

• $90

Avery and Kara decide to get an apartment together after graduation. They are both on the lease. Things go well until Kara loses her job. Which of the following best describes what will happen if Kara can’t pay her half of the rent?

• Avery is not required to pay any rent if Kara doesn’t pay her share.

• Avery will have to pay all of the rent or both of their credit scores could be damaged.

• Avery’s credit will be safe as long as she pays her half of the rent.

• Avery will have to pay the entire rent, but Kara’s credit will still be damaged.

• Avery will only have to pay her share of the rent and doesn’t have to worry about Kara because they signed separate contracts.

Noah is looking for a powerful truck. He found the perfect one and decided to buy it. The final purchase price is $52,600. If sales tax is 8.25 percent, what amount will Noah expect to pay in taxes?

• $4,339.50

• $6,375.75

• $8,250.00

• $48,260.50

• $56,939.50

Which of the following is not typically included in an apartment HOA fee?

• Water

• Sewer

• Garbage

• Cable

Renter’s insurance is usually more expensive than homeowner’s insurance.

• True

• False