Question 1

One would be more likely to pay discount points if she expected

Accepted Answer

A)  to live in the house a short period of time. 
B)  to live in the house a long period of time. 
C)  interest rates to go up. 
D)  interest rates to go down. 
E)  interest rates to remain constant. 
A)  to live in the house a short period of time. 
B)  to live in the house a long period of time. 
C)  interest rates to go up. 
D)  interest rates to go down. 
E)  interest rates to remain constant.

Question 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The 11?? District Cost of Funds index is much [more | less] volatile than LIBOR and CD-based indexes.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

A money factor of 0.00360 on a lease is equivalent to an annual percentage rate of

Accepted Answer

A)  1.80. 
B)  3.60. 
C)  4.32. 
D)  8.64. 
E)  10.80. 
A)  1.80. 
B)  3.60. 
C)  4.32. 
D)  8.64. 
E)  10.80.

Question 5

Janice wants to buy a new car.The cost is $30,000.At the end of six years,the car is expected to be worth 20% of the original price.(Show all work.)a.
What will the car value be in six years? b.
What is the annual depreciation on the car?

Accepted Answer

a. Value o

Question 6

The difference between the market value of your home and the balance of the mortgage is your equity in the property.

Accepted Answer

A) True 
 B)False

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A lender gives you a choice of an 80% loan-to-value ratio or a 90% loan-to-value ratio.The interest rate for the 80% loan-to-value ratio loan will typically be [higher | lower] than the 90%.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

The ____ would be included in a rental contract or lease agreement.

Accepted Answer

A)  amount of the monthly payment 
B)  payment date 
C)  length of lease agreement 
D)  deposit required 
E)  all of these would be included 
A)  amount of the monthly payment 
B)  payment date 
C)  length of lease agreement 
D)  deposit required 
E)  all of these would be included

Question 9

Judy has $2,000 for a down payment on a vehicle and she can afford monthly payments of $400.She wants to finance a vehicle over no more than 4 years.If lenders are currently offering 6 percent interest on 5-year loans,what is the maximum price Judy can pay for a vehicle?

Accepted Answer

PMT= $400,I=6/12,N=6

Question 10

____ is a fixed auto ownership cost.

Accepted Answer

A)  Gasoline 
B)  Installment loan payment 
C)  Auto insurance 
D)  Maintenance 
E)  b and c 
A)  Gasoline 
B)  Installment loan payment 
C)  Auto insurance 
D)  Maintenance 
E)  b and c

Question 11

Your mortgage payment is $1,500 per month.Of this amount,insurance is $50,property taxes are $200,and interest is about $1,100.Assuming you have other itemized deductions that already exceed your standard deduction and that you are in the 31% marginal tax bracket,what is the reduction in your tax liability as a result of owning a home with this mortgage.(Show all work.)

Accepted Answer

Monthly tax deduction = $200 +

Question 12

What is the maximum amount a first-time home buyer who is not 5½9 years old can withdraw from an IRA without penalty?

Accepted Answer

A)  $25,000 
B)  $15,000 
C)  $10,000 
D)  $ 5,000 
E)  $ 2,000 
A)  $25,000 
B)  $15,000 
C)  $10,000 
D)  $ 5,000 
E)  $ 2,000

Question 13

An inflation hedge is an asset that increases in value at a rate equal to or greater than the rate of inflation.

Accepted Answer

A) True 
 B)False

Question 14

The money factor on an auto lease is similar to the interest rate on a loan.

Accepted Answer

A) True 
 B)False

Question 15

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The purchase price of the house you are buying is $180,000.A loan-to-value ratio of 90% will produce a mortgage amount of [$162,000 | $180,000].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 16

Patrick would like to know the monthly payments and the total finance charges on the following 2 loans: (Show all work.)a.
$30,000,9%,36 months b.
$30,000,9%,48 months

Accepted Answer

a.36 month loan: PV=30,000,I=9

Question 17

An adjustable rate mortgage with a baseline rate of 5%,a margin of 2%,and an annual cap of 1% would have an initial mortgage rate of 7%.

Accepted Answer

A) True 
 B)False

Question 18

One can arrange auto loans through

Accepted Answer

A)  auto dealers. 
B)  banks. 
C)  credit unions. 
D)  consumer finance companies. 
E)  all of the above. 
A)  auto dealers. 
B)  banks. 
C)  credit unions. 
D)  consumer finance companies. 
E)  all of the above.

Question 19

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-With most ARMs,the interest rate over the lifetime of the loan can [increase to any level | increase only up to the pre-stated maximum].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 20

The highest average cost housing to purchase would be a

Accepted Answer

A)  cooperative apartment. 
B)  condominium. 
C)  single-family detached home. 
D)  row house. 
E)  manufactured home. 
A)  cooperative apartment. 
B)  condominium. 
C)  single-family detached home. 
D)  row house. 
E)  manufactured home.

One would be more likely to pay discount points if she expected

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The 11?? District Cost of Funds index is much [more | less] volatile than LIBOR and CD-based indexes.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

A money factor of 0.00360 on a lease is equivalent to an annual percentage rate of

Janice wants to buy a new car.The cost is $30,000.At the end of six years,the car is expected to be worth 20% of the original price.(Show all work.)a. What will the car value be in six years? b. What is the annual depreciation on the car?

The difference between the market value of your home and the balance of the mortgage is your equity in the property.

The ____ would be included in a rental contract or lease agreement.

Judy has $2,000 for a down payment on a vehicle and she can afford monthly payments of $400.She wants to finance a vehicle over no more than 4 years.If lenders are currently offering 6 percent interest on 5-year loans,what is the maximum price Judy can pay for a vehicle?

____ is a fixed auto ownership cost.

What is the maximum amount a first-time home buyer who is not 5½9 years old can withdraw from an IRA without penalty?

An inflation hedge is an asset that increases in value at a rate equal to or greater than the rate of inflation.

The money factor on an auto lease is similar to the interest rate on a loan.

Patrick would like to know the monthly payments and the total finance charges on the following 2 loans: (Show all work.)a. $30,000,9%,36 months b. $30,000,9%,48 months

An adjustable rate mortgage with a baseline rate of 5%,a margin of 2%,and an annual cap of 1% would have an initial mortgage rate of 7%.

One can arrange auto loans through

The highest average cost housing to purchase would be a

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 5: Making Automobile and Housing Decisions

One would be more likely to pay discount points if she expected

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The 11?? District Cost of Funds index is much [more | less] volatile than LIBOR and CD-based indexes.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The total amount of interest you would have to pay would be less with a [25 | 20] year mortgage.

A money factor of 0.00360 on a lease is equivalent to an annual percentage rate of

Janice wants to buy a new car.The cost is $30,000.At the end of six years,the car is expected to be worth 20% of the original price.(Show all work.)a. What will the car value be in six years? b. What is the annual depreciation on the car?

The difference between the market value of your home and the balance of the mortgage is your equity in the property.

The ____ would be included in a rental contract or lease agreement.

Judy has $2,000 for a down payment on a vehicle and she can afford monthly payments of $400.She wants to finance a vehicle over no more than 4 years.If lenders are currently offering 6 percent interest on 5-year loans,what is the maximum price Judy can pay for a vehicle?

____ is a fixed auto ownership cost.

What is the maximum amount a first-time home buyer who is not 5½9 years old can withdraw from an IRA without penalty?

An inflation hedge is an asset that increases in value at a rate equal to or greater than the rate of inflation.

The money factor on an auto lease is similar to the interest rate on a loan.

Patrick would like to know the monthly payments and the total finance charges on the following 2 loans: (Show all work.)a. $30,000,9%,36 months b. $30,000,9%,48 months

An adjustable rate mortgage with a baseline rate of 5%,a margin of 2%,and an annual cap of 1% would have an initial mortgage rate of 7%.

One can arrange auto loans through

The highest average cost housing to purchase would be a

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters