FIN 301

IRA withdrawals can be made without tax penalty any time after you reach the age of 59.5

True

If you buy a zero coupon bond, you will receive no cash from the corporation until the bond matures

True

Marilyn is purchasing a new car of 30,000. She can make a 3,000 down payment, and will make 60 monthly payments of 500 each. What is the principal balance of the loan

27,000

The higher the tax bracket you are in, the more attractive the purchase of municipal bond becomes

True

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

True

You can deduct mortgage interest and property taxes on your home to reduce your federal income taxes only if you itemize deductions

True

The market price of a house is 125,000 and the homebuyer will borrow 100,000. Two points will equal 2000

true

One's average tax rate is typically lower than one's marginal tax rate

True

Banks and other financial institutions insure the contents of safe-deposit boxes

False

John anderson deposited 10,000 in a CD for 3 years at 5%, it should now be worth

11,580

Shrek is purchasing a used Honda accord. the dealership is offering an annual interest rate of 12% on a 2 year loan. the car is 10000. What will shrek's payment be?

470.73

What can you do if your budget shows an annual budget deficit

All of the above

The majority of each monthly payment at the beginning of the loan goes to pay

Interest

In which of the following situations would you have to pay additional money when returning a vehicle using a closed-end lease

Mileage limits were exceeded