Buying a Car Math Quiz

Your car insurance policy includes a $500 deductible (insurance covers everything over $500 in repairs). You have been in a fender bender and the repair bill for your car is $2,350. What is the balance of your repair bill that your insurance company must pay?

$1,850

Over its first two years a new car loses at least 30% of its resale value. What will the average resale value of a new car costing $22,000 be after two years?

$15,400

You are buying a new car. Car option "A" gets 18 miles per gallon of gas (MPG) and has a monthly payment of $368. Car option "B" is a hybrid and has a monthly payment of $409. Gas costs $2.89 per gallon. You drive an average of 12,000 miles per year. What is the annual difference in the cost between the two cars in gasoline plus monthly payment per month?

$857

You are buying an old "go to work" pickup with a price tag of $1,600. You apply a down payment of $200.00. Sales tax is 6.5%. You will have to borrow $1,504 at 8% interest for one year to complete the purchase. What will your full purchase price be with principal, tax and interest? (Assume you need to borrow to make tax payment also.)

1,824

Car A gets 25 miles per gallon and costs $13,000. Car B is a hybrid that gets 45 miles per gallon, but costs $25,000. Assume you drive 15,000 miles per year and that gas will cost $4 per gallon for the foreseeable future. How many years will it take for Car B's better fuel economy to outweigh its higher initial cost?

11.25

Your car is 7 years old. The replacement value is about $3,500. Collision insurance is usually about 60% of your insurance bill (Collision plus Liability coverage). Your Liability coverage costs you $200 per year. How many years will it take you in Collision payments to equal the full replacement cost of your car? (Round to the nearest year.)

12

A car gets 35 miles per gallon. How many gallons do you need to go 700 miles?

20

To get to work, you drive for 20 minutes at 30 mph, and walk 10 more minutes at 3 mph. What was your average speed?

21 mph

According to AAA the average monthly maintenance cost on a used car is $75 per month. You are looking to pay cash for the exact same Jeep at two different dealers. Dealer "A" wants $4,995.00. Dealer "B" wants $5,595.00 with free maintenance coverage for one year. Which is the best deal?

Dealer "B"

Based on your schedule, having a car will cut your transportation costs enough to squeeze in a 4 hour shift each weeknight at the fast food store paying $9 per hour. You estimate that the car will cost you $100 per week to own and operate. Your take-home pay will be 70% of your gross pay. Is it worth it to get the car?

Yes