Test 6 on Chapters 14, 15 and 19

• Question 1

	Ed Sloan bought a new Explorer for $22,000. He put down $7,000 and paid $290 for 60 months. The total finance charge to Ed is:
	Answer:    $2,400

• Question 2

	Russell Ray bought a plasma television with $200 down and 60 equal monthly installments of $210. The total purchase price (cash price) of the televisions was $12,000. Russell decided to pay off the bill after the 10th payment. Russell is entitled to a rebate of: (Use the tables in the handbook)
	Answer:    None of these

• Question 3

	Which one of the following statements is incorrect?
	Answer:    The Truth in Lending Act regulates interest charges

• Question 4

	Amount financed is equal to:
	Answer:    Cash price less down payment

• Question 5

	Open credit in a revolving charge plan results in:
	Answer:    As many charge purchases till credit limit is reached

• Question 6

	The APR represents the:
	Answer:    True effective annual rate of interest charged by seller

• Question 7

	Mia Lane bought a high definition television for $7,500. Based on her income, she could only afford to pay back $600 per month. There is 1 ½ percent monthly interest charge on the unpaid balance. The U.S. Rule is used in the calculation. At the end of month one, the balance outstanding is:
	Answer:    None of these

• Question 8

	Bill Moore took out an $80,000 mortgage on a ski chalet. The bank charged 4 points at closing. The points in dollars cost Bill:
	Answer:    $3,200

• Question 9

	Dick Hercher bought a home in Homewood, Illinois for $230,000. He put down 20 percent and obtained a mortgage for 25 years at 8 percent. The total interest cost of the loan is:
	Answer:    $242,144

• Question 10

	The total cost of interest is equal to the total of all monthly payments:
	Answer:    Less amount of mortgage

• Question 11

	Stu Reese has a $150,000 7 ½ percent mortgage. His monthly payment is $1,010.10. His first payment will reduce the principal to an outstanding balance of:
	Answer:   $149,927.40

• Question 12

	An amortization schedule shows:
	Answer:    Portion of payment broken down to interest and principal

• Question 13

	Jill Diamond bought a home for $190,000 with a down payment of $65,000. The rate of interest was 7 percent for 35 years. Her monthly mortgage payment is:
	Answer:   $798.75

• Question 14

	Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down. Assuming a rate of 8 percent on a 25 year mortgage, Craig's monthly payment is: (Use the table in the handbook)
	Answer:    $1,505.40

• Question 15

	A tax rate of $.0711 in decimal expressed per $1,000 of assessed valuation is equal to:
	Answer:    $71.1

• Question 16

	Assessed valuation is equal to the assessment rate:
	Answer:    Times the market value

• Question 17

	In the community of Borg, the market value of a home is $190,000. If the assessment rate is 45 percent, the assessed value is:
	Answer:    $85,500

• Question 18  

	The building of Jim's Hardware is assessed at $109,000. The tax rate is $86.95 per $1,000 of assessed valuation. The tax due is:
	Answer:    $9,477.55

• Question 19

	Sales tax is taken on:
	Answer:    Selling price less trade discount

• Question 20

	Jen Rich bought a new Toyota for $18,200 that included a 5 percent sales tax. The actual cost of the car (round to nearest dollar) before the tax is:
	Answer:    $17,333 I apologize to you all, but I do not have test 5 on chapters 12 and 13. I will post a study guide that I used instead.  Good luck everyone on your upcoming exams and thank you for visiting my blog.