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WorksheetsReview of Unit 6: First Major Obligations
Total questions: 30
Worksheet time: 29mins
Which of the following lease terms (the length of a lease) is often the most expensive?
Month-to-month
Three months
Six months
One year
Which of the following up-front lease expenses is most likely to be refunded?
First month’s rent
Last month’s rent
Security deposit
Pet deposit
Application fees
Which of the following maintenance issues is most likely going to be the responsibility of the tenant not the landlord?
Replacing the carpet
Painting the walls
Replacing tiles in the kitchen
Installing blinds on the windows
Changing burned out light bulbs
Tyler is excited for his new apartment but was shocked at the amount of money he needed up front to sign his lease. The rent is only $750 a month. However, upon signing, Tyler had to pay first and last month’s rent, a $300 security deposit, and a $150 pet deposit. What amount did Tyler pay in total?
$900
$1,200
$1,350
$1,950
$2,400
It is always a good idea to walk through an apartment before signing the lease.
True
False
Most apartment rent includes the cost of gas and electric utilities.
True
False
Every lease agreement will allow subletting.
True
False
Most lease agreements contain a provision that allows the landlord to enter the home under certain reasonable conditions.
True
False
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’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.
Avery will have to pay all of the rent or both of their credit scores could be damaged.
Lease agreements are legally binding contracts and can result in lawsuits and damaged credit if they are broken.
True
False
Which of the following is NOT a major cost of vehicle ownership?
Insurance
Fuel
Repairs
Maintenance
Parking
Alyssa recently bought a used Honda Accord and was surprised her insurance rates were so high. Which of the following most likely explains why her rates were so high?
She uses her car for personal reasons rather than business.
The make and model of her car has a history of being stolen more than others.
Women are typically more expensive to insure regardless of the vehicle.
Her car is red, so it is more likely to be ticketed.
Which of the following would not impact the repair costs for a vehicle?
The price of the parts
The training for mechanics
The frequency at which the car breaks down
The time of year the repairs must be done
Antwoine is thinking about taking his family on a trip to Myrtle Beach. His car gets good gas mileage (30 mpg), and the drive is about 900 miles. What amount would it cost him to drive there and back if the average gas price along the way is $2.75?
About $42
About $83
About $165
About $1,100
About $2,400
Stacy is shopping for a new car and has narrowed it down to the following options. She wants the car that will be the least expensive. No matter what, she will drive 1,000 miles a month, and gas will still cost $1.95. Which one should she buy?
Payment: $200, mpg: 25
Payment: $150, mpg: 18
Payment: $230, mpg: 32
Payment: $190, mpg: 27
To determine the affordability of a car, a person should consider only the monthly payment, gasoline, and insurance.
True
False
Insurance companies charge more based on car color.
True
False
Kaytlin is thinking about buying a new car but was shocked at the cost of insurance. She assumed it would be less expensive because it isn’t a luxury car and has good safety features. Which of the following most likely explains why her quote is so high?
Kaytlin lives in downtown Houston.
Kaytlin only drives about 700 miles a month.
Kaytlin only took one driver’s safety course.
Kaytlin has never made a claim against her insurance policies.
Kaytlin is married with three children.
Which of the following formulas calculates the amount of money a person should budget for fuel?
Miles driven / mpg = fuel costs
(Miles driven / gas prices) mpg = fuel costs
Miles driven x mpg = fuel costs
(Miles driven / mpg) gas prices = fuel costs
Blake recently got a new job and needs to adjust his gasoline budget to accommodate a longer commute. He estimates he will drive about 1,500 miles a month. Gasoline averages about $2.50 a gallon where he lives, and his car gets around 25 mpg. What amount should he budget to ensure he has enough money for gas each month?
$90
$125
$150
$225
$300
Jeri has decided to buy a new car. After reviewing her finances, she feels the most she can afford to spend is $8,000. When she arrives at the dealership, the salesperson conducts a needs assessment to help her find the right vehicle. He asks, “About what amount are you looking to spend?” Which of the following responses would be wisest for Jeri?
I am more concerned with my monthly payment and cannot go above $200 a month.
I do not want to spend more than $8,000.
It really depends on how much I like the car.
I’d like to stay around $6,000, but I could go as high as $7,500 if I really like the car.
Which of the following is a key to negotiation?
Only negotiate with decision makers
Demand a crazy good deal and be prepared to walk out
Never negotiate in ignorance
Negotiate multiple deals at a time
How should a person determine the starting amount to begin a car deal negotiation?
Start at the lowest price the dealer will agree to
Always start $2,000 below MSRP
Subtract the offered amount for a trade-in from MSRP
There is no way to determine a good starting point because every car is different.
Start with MSRP, subtract 10 percent then subtract any offered incentives
What is a 10-day payoff?
A special promotion at a car dealership that usually only lasts ten days
When a car dealership allows a person to take a car home as long as she finances it within 10 days
A 10-day period in which a person can return a car and get her money back
A quote given by a car dealership that specifies the amount they will give for a trade-in if it occurs within 10 days of receiving said quote
The amount of money needed to pay off a current car loan within the next 10 days
What is the single most important thing to do when buying a car?
Read and understand everything before signing legal documents
Treat the dealer with respect
Trust the dealer as an expert in car sales
Remove emotions from the decision completely
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.
Scott was just approved for a car loan. Which of the following was his interest rate based on?
His income and down payment
His credit report/score
His down payment
His credit report/score and income
Calculate the out-the-door price with the following information:
Negotiated price: $32,000
Trade-in credits: $2,400
Incentives: $500
Sales tax: $1,850
Total fees: $375
$26,875
$30,950
$31,325
$32,325
$32,675
What is the purpose of gap insurance?
To cover any repairs in the event of an accident if the other driver doesn’t have enough insurance to fix the vehicle
To cover extra debt in case the trade-in value of a trade-in doesn’t pay off a new car loan
To cover the difference between the amount owed on a vehicle and the amount the insurance will cover for the vehicle in the event of total loss
To make any car payments a person cannot afford
To cover the costs of any damages that may occur to other vehicles in case the owner causes an accident
It is a good idea to tell a car salesperson a desired monthly payment instead of the desired total cost.
True
False
