review V. F

Sally recently graduated from college and has started working at her first job. She has decided 116

to lease a car. State one reason why leasing may be a good choice for Sally. Justify your

reason.

Lindsay takes her car to a Manitoba car dealership for servicing. The dealership charges 117

$95 per hour for labour. The following items were replaced: four (4) spark plugs for $2.25

each, one (1) air filter for $12.50 and one (1) headlight for $30. The job took 1.25 hours to

complete.

Calculate the total cost of repairs including taxes.

Maryann borrows $12 500 from her bank to purchase a car. The bank offers her a rate of

6.75% per year for 5 years.

A)Calculate the monthly payment. (2 marks)

B) Calculate the total amount of interest paid over the life of the car loan. (2 marks)

Drew has recently purchased a vehicle for $17 100. He borrowed $15 000 at 6.25% interest 120

for 5 years. Complete the amortization table below

Choose the letter that best completes the statement below.

When purchasing car insurance, a deductible is:

a) the amount you pay every year for the insurance.

b) a one-time lump sum you pay the insurance company when you first buy the car.

c) the amount of the insurance claim you must pay when at fault for an accident.

d) the amount you pay for extra coverage against damage to another person or their

property.

State and explain two (2) factors that may increase a car insurance premium in Manitoba.

Explain why a car insurance policy with a $200 deductible will cost more than a similar 123

policy with a $500 deductible.

Tom decides to buy a new car in Manitoba for $32 400. He adds a tow package to the car for $3000. The freight is $650. The dealership gives him $12 000 for his old car.

Calculate the cost, including taxes, of purchasing the new vehicle.

Mary borrows $18 500 from her bank to purchase a car. The bank offers her an interest rate of 6.75% for 4 years.

A) Calculate the monthly payment. (2 marks)

B) Calculate the total amount of interest paid over the life of the loan. (2 marks)

15. Dallas needs a vehicle to get to work. He has decided which vehicle he wants. State two (2) advantages of buying the vehicle, rather than leasing it.