Review Test Submission Unit 4 Participation Questions – PDF

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Summary

test questions...

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3/12/2021

Review Test Submission: Unit 4 Participation Questions –...

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Patricia Skinner

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Unit 4 - Borrowing: For Large Purchases

3

Review Test Submission: Unit 4 Participation Questions

Review Test Submission: Unit 4 Participation Questions User

Patricia Marie Skinner

Course

Spring 2021 TTU - PFI-3301-D01 & PFI-3301-D02

Test

Unit 4 Participation Questions

Started

3/12/21 6:06 PM

Submitted

3/12/21 6:18 PM

Due Date

3/12/21 11:59 PM

Status

Completed

Attempt Score

9.5 out of 10 points

Time Elapsed

11 minutes

Instructions Get your calculator out! Here you will be able to practice testing your understanding of the unit material. There is no time limit and you must get a 100% to maintain your participation points. You have unlimited attempts. These participation questions are an opportunity to learn how the course operates. To begin, click on "Begin."

Here are instructions for those who want to work ahead within this unit: As soon as you complete the Unit Participation Questions the Unit Project will become available. If you choose not to work ahead the items will become available as stated on the course schedule. Results Displayed

All Answers, Submitted Answers, Incorrectly Answered Questions

Question 1

0.5 out of 0.5 points

Which of the following qualifies as carrying cost? Selected Answer:

Depreciaon losses

Answers:

Fuel Expense Maintenance Cost Depreciaon losses All of the above None of the above

Question 2

0.5 out of 0.5 points

When talking with the car salesman, which of the following should you avoid: Selected Answer:

Discussing the payment you can afford

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Review Test Submission: Unit 4 Participation Questions –...

Answers:

Discussing the payment you can afford Discussing the value of the car. Discussing the color of the car. Discussing the model of the car. Discussing the cost of warranes. Discussing the breakdown of the price of the car

Question 3

0.5 out of 0.5 points

What is the biggest disadvantage of renng compared to buying a house? Selected Answer:

Inability to build equity.

Answers:

Inability to build equity. Not being able to remodel as you wish Security deposit. Renter’s insurance.

Question 4

0.5 out of 0.5 points

Consider home ownership when you have: Selected Answer:

All of the above.

Answers:

Down payment saved. Locaon/employment stability for at least 5 years Adequate resources to sustain homeownership. All of the above. None of the above.

Question 5

0.5 out of 0.5 points

What loan to value rao do mortgage lenders generally require to avoid PMI? Selected Answer:

80%

Answers:

20% 80% 50% 90% 95%

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Review Test Submission: Unit 4 Participation Questions –...

0.5 out of 0.5 points

Question 6

Suppose you purchased $200,000 house with 4% interest, 3 points, and your Loan to Value rao was 80%. How much did you end up paying for the points? (Hint: 1 point = 1% of the total loan amount.) Selected Answer:

$4,800

Answers:

$4,800 $3,500 $6,000 $40,000

Question 7

0.5 out of 0.5 points

Suppose you have negoated the price of new car to $30,000 with a down payment of $10,000. APR is 5% for a 5-year loan term. What is the finance charge on this loan? Selected Answer:

$2,645

Answers:

$4,748 $22,645 $6,923 $2,645

Question 8

0.5 out of 0.5 points

Suppose you have negoated the price of new car to $30,000 with a down payment of $10,000. APR is 5% for a 5-year loan term. What is the total cost of this car? Selected Answer:

$32,645

Answers:

$32,645 $34,748 $30,000 $22,645

Question 9

0.5 out of 0.5 points

For fixed rate mortgages the PITI is fixed for the life of the loan. Selected Answer:

False

Answers:

True False

Question 10

0.5 out of 0.5 points

Which of the following is the correct way to determine what an individual's maximum monthly PITI https://ttu.blackboard.com/webapps/assessment/review/review.jsp?attempt id= 38512254 1&course id= 109394 1&content id= 6873488 1&return… 3/6

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Review Test Submission: Unit 4 Participation Questions –...

should be? Selected Answer:

The smaller of: 28% of gross income or take 36% of gross income and then subtract out other loans. 36% of net discreonary income.

Answers:

The larger of: 36% of gross income or 28% of gross income The smaller of: 28% of gross income or take 36% of gross income and then subtract out other loans. The smaller of: 36% of gross income or 28% of net income and then add in othe loans.

Question 11

0.5 out of 0.5 points

Automobile sales staff typically want to start negoaons with a potenal buyer by establishing the _______. Selected Answer:

affordable monthly payment

Answers:

trade-in value vehicle price loan needs affordable monthly payment

Question 12

0.5 out of 0.5 points

The PI of the PITI of fixed rate mortgages is generally fixed during the life of the loan. Selected Answer: Answers:

True True False

Question 13

0.5 out of 0.5 points

A credit card is considered an installment loan. Selected Answer:

False

Answers:

True False

Question 14

0.5 out of 0.5 points

Having good credit guarantees that you will get loans you apply for. Selected Answer: Answers:

False True

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Review Test Submission: Unit 4 Participation Questions –...

False

Question 15

0.5 out of 0.5 points

Buying a vehicle is always cheaper than leasing. Selected Answer: Answers:

False True False

Question 16

0.5 out of 0.5 points

For owners of new cars, carrying costs tend to be higher than operating costs in the first few years of ca ownership. Selected Answer: Answers:

True True False

Question 17

0.5 out of 0.5 points

You have a credit card balance of $5,280 and are currently paying $150 per month. If you have an annual interest rate of 24.99%, how many months will you be making payments before the card is paid off? Selected Answers:

65

Answers:

6 64 65 5

Question 18

0.5 out of 0.5 points

You have a credit card balance of $5,280 and are currently paying $150 per month. If you have an annual interest rate of 24.99%, how much do you need to increase your monthly payment by to pay off the card in 2 years? Selected Answers:

131.78

Answers:

281.78 131.78 1,325.74 1,175.74 2,722.75 2,572.75

Question 19

0 out of 0.5 points

It is cheaper to finance a $15,000 car for 48 months at 1.99% APR than 24 months at 3.49% APR. https://ttu.blackboard.com/webapps/assessment/review/review.jsp?attempt id= 38512254 1&course id= 109394 1&content id= 6873488 1&return… 5/6

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Review Test Submission: Unit 4 Participation Questions –...

Selected Answer: Answers:

True True False

Question 20

0.5 out of 0.5 points

It is cheaper to finance a $25,000 car for 60 months at 0% APR than 36 months at 2% APR with $800 cash back from the dealer. Selected Answer: Answers:

False True False

← OK

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