exam 2 study

Acme Home Lending offers home equity loans up to 80% of the home value for its customers. If Sally Johnson has a home valued at $200,000 and a current mortgage of $50,000, how much can she borrow in a home equity loan from Acme?

110,000

Which of the following is NOT a benefit of home ownership?

Maintenance and costs of repairs and home improvements

Home equity loans should be used for

Major expenses such as home improvements or education.

Price analysis is part of the ________ phase of the research-based buying process.

evaluating alternatives

Mia wants to buy a new car. The local credit union offers her a 60 month loan at a promotional rate of 3.6%. She is told her monyhly payments are $ 220. So, her loanamount is $_______ .

$12,064

Using the following information, what is the cost to lease a car? • Down payment - $300 • Monthly loan payment - $300 per month for a five-year loan • Opportunity cost of down payment- $300 × loan period (in years) × 2% interest •Estimated value of vehicle at end of ownership period - $500

$18,530

Leo received a $1,400 loan from the bank for a new appliance. The bank is using the simple interest formula for this two-year, 8% loan. What is his total interest?

$224

Using the following information, what is the cost to buy a car? • Down payment - $3,000 • Monthly loan payment - $350 per month for a six-year loan • Opportunity cost of down payment- $3,000 × loan period (in years) × 2% interest •Estimated value of vehicle at end of ownership period - $4,000

$24,560

Suppose you borrow $300 for one year and pay a finance charge of $20. If you repay this loan all at once after one year, what is your average balance?

$300

Ema lost her debit card. When she realized it was gone, her account had $173 in unauthorized charges. She notified her financial institution within two days. How muchis she potentially liable for?

$50

Which of the following is correct about the lemon law?

It applies to vehicles that have been served four times to correct problems in the first 12,000 miles

A joint account with Sue and Ken allows

John and Sara to both write checks on the account

A vehicle lease has several costs. Which of the following is the interest rate used to 1) calculate the monthly cost?

Money Factor

Which of the following is an advantage of a car lease?

Monthly lease payments are usually lower than monthly financing payments.

Which of the following expenses is NOT usually incurred by a tenant?

property taxes

Major factors that affect the affordability of your mortgage include all of the following except

size of the home