Home Ownership practice/test
Jamal has owned his home for about 5 years. His refrigerator needs to be replaced and Jamal is thinking about buying an Energy Star-labeled model that will save money on his utility bills. The model he is looking at costs $598 and advertises a cost of only 12 cents per day. Jamal has calculated that he spends about $132 per year on his old refrigerator. How long would it take for the new refrigerator to pay for itself in lower utility costs? Round to the nearest whole year. a. 7 years b. 14 years c. 5 years d. 11 years
A
The Reed and the Merrill families are comparing their utility costs for the past month. The following is a list of the appliances that the families are using to make their comparisons: Reed Family Appliances Merrill Family Appliances Gas range 5 cents per day Electric range 13 cents per day Gas dryer - 1 load per day 10 cents per load Gas dryer - 1 load per day 10 cents per load Electric water heater 90 cents per day Gas water heater 40 cents per day Typical later model refrigerator 16 cents per day Energy Star-labeled refrigerator 12 cents per day Assuming that the families use the same appliances in the same way, who spends more to run these appliances in a given 30 day period and by how much? a. The Reed family spends $13.80 more than the Merrill family. b. The Reed family spends $0.46 more than the Merrill family. c. The Merrill family spends $58.80 more than the Reed family. d. The Merrill family spends $18.60 more than the Reed family.
A
The national average utility cost is $270.48 per month. If the average electric bill is 44.9% of the total amount and the average utility cost for Orlando, FL is $308.83, what would be the cost of a typical Orlando electric bill and how would that compare with the national average? a. The typical Orlando electric bill would be $138.66, which would be $17.21 more than the national average. b. The typical Orlando electric bill would be $121.54, which would be $17.21 less than the national average. c. The typical Orlando electric bill would be $138.66, which would be $76.64 more than the national average. d. The typical Orlando electric bill would be $121.54, which would be $76.64 less than the national average.
A
Why might where you live be a factor in determining your utility costs?
Area can be a factor in determining your utility costs because of climate and varying costs of utilities.A climate that is very cold would have higher heating costs than a warmer climate. Similarly, a climate that is very hot could have higher cooling costs than a cooler climate. Many regions of the country have different utility companies who might charge different rates for their services. Taxes paid on utilities may be higher in one region of the country than another.
Anna is trying to save some money on her electric bill. Her electric company has come up with a new plan designed to charge customers based on when they use electricity. She is trying to decide if the new interval use plan would be better than the standard use plan for her needs. Calculate the monthly costs of both plans if she uses 1,185 kWh of electricity per month with 500 kWh on-peak usage and the rest off-peak usage. Standard Use Plan Interval Use Plan 8.5 cents/kWh for the first 600 kWh 11 cents/kWh for anything over 600 kWh On-peak hours - 16 cents/kWh Off-peak hours - 4 cents/kWh a. standard use plan - $64.35; interval use plan - $80.00 b. standard use plan - $115.35; interval use plan - $107.40 c. standard use plan - $64.35; interval use plan - $107.40 d. standard use plan - $115.35; interval use plan - $80.00
B
Chyou has heard that gas appliances are cheaper to use and can lower utility costs. She is interested in purchasing a new gas dryer to replace her electric dryer. Assuming that the dryer drys one load per day, use the following chart to determine how much Chyou will save each year in utility costs by purchasing the gas appliance. Electric Dryer 45 cents per load Gas Dryer 16 cents per load a. $165.25 b. $105.85 c. $58.40 d. $47.45
B
Jack is trying to determine how he can save money by cutting his electricity bill. He is currently on a standard use plan for electricity and pays 7.5 cents per kWh. He keeps track of when he uses electricity and is thinking about switching to an interval use plan for electricity which costs 3 cents per kWh for off-peak use and 15 cents per kWh for on-peak use. Off-peak hours are from 8PM - 8AM and on-peak hours are from 8AM - 8PM. Below is the chart of his electricity usage: Jack's Electricity Usage Per Month 1200 kWh between 8PM and 8AM 400 kWh between 8AM and 8PM Explain and justify which plan would best suit his needs. a. Jack should not switch to the interval use plan, which would cost $24 more per month. b. Jack should switch to the interval use plan, which would save him $24 per month. c. Jack should switch to the interval use plan, which would save him $96 per month. d. Jack should not switch to the interval use plan, which would cost $96 more per month.
B
Li-Mei thinks she can save money on electricity by changing all her bulbs from incandescent bulbs to fluorescent bulbs. Based on the following energy cost table, how much can she save each year if she replaces 8 bulbs? Incandescent bulb - 150 hours monthly use $.05 per hour Fluorescent bulb - 150 hours monthly use $.02 per hour a. $36 b. $432 c. $54 d. $1,008
B
Noah has just purchased a previously owned home. He put $5,000 towards a down payment and took out a $65,000 mortgage. Noah knows that his older home will need maintenance right away and wants to budget enough for this coming year for unexpected expenses. When estimating costs for home repair and maintenance, a good estimate is to budget 1% of the purchase price of a house. What would be a good yearly estimate of repairs and maintenance for Noah's home? a. $1550 b. $700 c. $650 d. $150
B
The average national utility price is $270.48. Over a 6-month period, what is the average utility price in Dallas? How does this compare with the national average? 2007-08-05-00-00_files/i0070000.jpg a. $1,956; higher than the national average b. $326; higher than the national average c. $163; lower than the national average d. $333; higher than the national average
B
Given the graph below, determine the average cost of utilities for both Orlando, FL and Indianapolis, IN during the 6 month period between April and September. How does the average monthly utility bill of Orlando, FL compare with the average monthly utility bill of Indianapolis, IN? a. The average monthly utility bill for Indianapolis, IN is $88.72 more than Orlando, FL. b. The average monthly utility bill for Indianapolis, IN is $85.33 more than Orlando, FL. c. The average monthly utility bill for Orlando, FL is $85.33 more than Indianapolis, IN. d. The average monthly utility bill for Orlando, FL is $88.72 more than Indianapolis, IN.
C
Hanna wants to calculate the cost of her electric bill. She is on a standard use plan that has a graduated fee schedule. Standard Use Plan 8.5 cents/kWh for the first 400 kWh 12 cents/kWh for the next 400 kWh 14.5 cents/kWh for anything over 800 kWh How much will her bill be if she uses 1,465 kWh? Round to the nearest dollar. a. $82 b. $96 c. $178 d. $144
C
Samantha is trying to determine how she can save money by cutting her electricity bill. She is currently on a standard use plan for electricity and pays 8.5 cents per kWh. She keeps track of when she uses electricity and is thinking about switching to an interval use plan for electricity which costs 2 cents per kWh for off-peak use and 13 cents per kWh for on-peak use. Off-peak hours are from 8PM - 8AM and on-peak hours are from 8AM - 8PM. Below is the chart of her electricity usage: Samantha's Electricity Usage Per Month 1100 kWh between 8PM and 8AM 800 kWh between 8AM and 8PM Explain and justify which plan would best suit her needs. a. Samantha should not switch to the interval use plan, which would cost $126.00 more per month. b. Samantha should switch to the interval use plan, which would save her $126.00 per month. c. Samantha should switch to the interval use plan, which would save her $35.50 per month. d. Samantha should not switch to the interval use plan, which would cost $35.50 more per month.
C
Shanika and Vanesa are comparing their electric bills for the past month. Shanika is on a standard use plan and Vanesa is on an interval use plan. Each person's usage is listed on the chart below: Standard Use Plan Interval Use Plan 7.5 cents/kWh for the first 400 kWh 10 cents/kWh for the next 400 kWh 12.5 cents/kWh for anything over 800 kWh On-peak hours - 15 cents/kWh Off-peak hours - 3 cents/kWh Both women use 1,325 kWh for the given 30 day period. Vanesa uses 500 kWh during on-peak hours and 825 during off-peak hours. Which person ends up paying more for their utilities? How much more? a. Vanesa pays $35.88 more than Shanika. b. Vanesa pays $99.75 more than Shanika. c. Shanika pays $35.88 more than Vanesa. d. Shanika pays $99.75 more than Vanesa.
C
The Davis family purchased a house last year. They put $20,000 towards a down payment and took out a $265,000 mortgage. Because it was a new home, all the repairs and maintenance were covered under the builder's warranty, but the Davises want to budget this coming year for unexpected expenses. When estimating costs for home repair and maintenance, a good estimate is to budget 1% of the purchase price of a house. What would be a good yearly estimate of repairs and maintenance for the Davis family's home? a. $28,500 b. $2,650 c. $2,850 d. $200
C
The climate in which Jonah lives is mild all year long except during the hotter summer months. For 3 months out of the year, Jonah needs to use 4 portable fans to cool his home. If the electricity to use one fan costs 1 cent per hour and each fan is on for about 96 hours per month, what is his total electricity cost for the fans during one year? a. $6.72 b. $3.84 c. $11.52 d. $2.88
C
Bao has been notified by his electric company that his rates are going up on his graduated fee schedule. He currently pays: Standard Use Plan 6.5 cents/kWh for the first 600 kWh 12 cents/kWh for the next 600 kWh If his rates go up 1 cent in each category, find how much he will pay if he uses 875 kWh per month. Round to the nearest dollar. a. $72 b. $105 c. $66 d. $81
D
Chloe lives in an area where she runs the air conditioner during the 4 hottest months of the year. The air conditioner runs for 7 hours per day at a cost of 21 cents per hour. How much does she spend per year on utility bills for the air conditioner?(Assume there are 30 days in each month) a. $705.60 b. $588.00 c. $216.09 d. $176.40
D
The national average utility cost is $270.48 per month. If the average phone bill is 12.6% of the total amount and the average utility cost for Dallas is $326, what would be the cost of a typical Dallas home phone bill? a. $48.30 b. $55.52 c. $34.08 d. $41.08
D
Zahra is anxious to save money on her utility bills and knows that changing the temperature of the water when she does laundry can help save money. Right now three-fourths of all her laundry is done with the hotter water. Use the table below to determine how much she currently pays in utility costs for laundry. Assume 1 load of wash per day. Clothes washer w/electric water heater Cost per load Hot wash & warm rinse 71 cents per load Warm wash & cold rinse 25 cents per load If she cuts down the amount of laundry that she does in hot water to one-half, about how much will she save every year? a. $65 each year b. $42 each year c. $23 each year d. $392 each year
NOT D
Budgeting for home maintenance early can save money in the long run. Why save early compared to later, especially if the home is new? a. Home maintenance is unpredictable, but it is important to do it promptly, or it will result in home damage that requires repair. b. Homebuilders are often untrustworthy and do low quality work, requiring home owners to fix or finish a lot of things on their own. c. Homeowners often run into problems soon after purchasing a brand new house. d. Homeowners always have a lot of money after moving into a house they purchased, so they save it for the future.
a. Home maintenance is unpredictable, but it is important to do it promptly, or it will result in home damage that requires repair.
Isaiah is trying to decide if the interval use plan is better than the standard use plan for his electricity consumption. Calculate the monthly costs of both plans if he uses 1,275 kWh of electricity per month with 575 kWh on-peak usage and the rest off-peak usage. Standard Use Plan Interval Use Plan 7.5 cents/kWh for the first 400 kWh 10 cents/kWh for anything over 400 kWh On-peak hours - 15 cents/kWh Off-peak hours - 3 cents/kWh a. standard use plan - $117.50; interval use plan - $107.25 b. standard use plan - $87.50; interval use plan - $86.25 c. standard use plan - $117.50; interval use plan - $86.25 d. standard use plan - $87.50; interval use plan - $107.25
a. standard use plan - $117.50; interval use plan - $107.25
Budgeting for home maintenance early can save money in the long run. Why save early compared to later, especially if the home is new?
a. Home maintenance is unpredictable, but it is important to do it promptly, or it will result in home damage that requires repair.
The Picketts have lived in their house for about 13 years. They like to keep a well-maintained property and have noticed that the paint on the exterior of their house is starting to peel. They get two bids for painting services from two different contractors. Based on the fee schedule below, which option would be the cheapest and by how much? Handyman's Paint Service Painting Plus Service $2250 all supplies and labor included for a 2-day job Two day job estimate $300 preparation work $765 labor per day $225 paint and supplies a. Painting Plus Service would be cheaper by $960 b. Painting Plus Service would be cheaper by $195 c. Handyman's Paint Service would be cheaper by $105 d. Handyman's Paint Service would be cheaper by $195
b. Painting Plus Service would be cheaper by $195
The Hendersons have just bought a home that requires some monthly yard maintenance. They are trying to decide if they should hire a professional lawn care service to maintain the property or do it themselves. Below are the costs associated with both options: Professional Service Option Do-It-Yourself Option $75 for the first month $250 lawnmower $45 per month after initial visit $135 edger Includes mowing and edging the lawn, trimming the bushes, and raking the leaves. $69 hedge trimmer $25 rake How long would it take before the Hendersons would recover their costs if they chose to do it themselves over the professional service? a. 5 months b. 9 months c. 10 months d. 6 months
c. 10 months
Bryce has heard that gas appliances are cheaper to use and can lower utility costs. He is interested in purchasing a new gas stove for his kitchen to replace his electric stove. Assuming that the stove gets used one hour per day, use the following chart to determine how much Bryce will save each year in utility costs by purchasing the gas appliance.
c. $29.20
The Baum and the Freeman families are comparing their electric bills for the past month. The Baum family is on a standard use plan and the Freeman family is on an interval use plan. Each family's usage is listed on the chart below: Standard Use Plan Interval Use Plan 8.5 cents/kWh for the first 400 kWh 12 cents/kWh for the next 400 kWh 14.5 cents/kWh for anything over 800 kWh On-peak hours - 13 cents/kWh Off-peak hours - 2 cents/kWh Both families use 1250 kWh for the given 30 day period. The Freeman family uses 400 kWh during on-peak hours and 850 during off-peak hours. Which family ends up paying more for their utilities? How much more? a. The Freeman family pays $260.83 more than the Baum family. b. The Freeman family pays $250.00 more than the Baum family. c. The Baum family pays $69.00 more than the Freeman family. d. The Baum family pays $78.25 more than the Freeman family.
d. The Baum family pays $78.25 more than the Freeman family.
What is not an example of a cost related to home ownership? a. property taxes b. maintenance c. repairs d. security deposit
d. security deposit