Chapt. 4 Review {Math}

6. Brad pays $346.50 per month for rent. How much does he pay in a year? If brad earns $1,586.00 per month, then does he pay rent according to the renter's rule? *Remember to use 4.3 weeks per month when you apply the RENTER'S rule.

345.50 x 12 = 4,158 1,586.00 x 4.3 = 368.84 Yes, he meets the renters rule

4. A family used 250 units of gas in October. The rate is $0.73 per unit. How much does the family owe the gas company for October?

Answer: B. $182.50 250 x .73 = $182.50

3. If the electric meter read 9989 on January 4th and 0051 on February 4th, how many units did you use in a month?

Answer: B. 62 Jan. 4th: 9989 Feb 4th: 10051 10051 - 9989 = 62

1. If you earn $14 an hour, what is the most you should pay for rent each month?

Answer: D. $560 40 x $14 = $560

Banker's Rule

You can borrow up to 2.5 times your annual income to buy a home

Renter's Rule

You shouldn't spend no more than one weeks income on monthly rent

14. What is the TOTAL amount due for these utility bills? Electric - $156.19 Telephone - $25.16 Gas - $32.78

$214.13

13. Compute the average number of units consumed: 504, 519, 576, 321, 256, 101, 76, 75, 127, 289, 367, and 511.

$3,722 / 12 = $310.16

7. Use the BANKER'S rule, which states you may borrow up to 2.5 times your annual income. Calculate the minimum annual income needed to borrow $75,000.

$75,000 / 2.5 = $30,000

8. A house is purchased for $87,000 with a down payment of $17,000. What is the monthly payment on a 9.5 % mortgage? How much will repaid in 30 years? Use the table on page 88 to help you.

$87,000 - $17,000 = $70,000 589 - {monthly} x 12 = 7,068 7,068 x 30 = 212,040

5. The coverage rate for a wood frame house in area is 0.5 %. How much would homeowners insurance cost for a $90,000 wood frame house?

$90,000 x .005 = $450.00

9. How much will homeowners insurance cost if the full value of a brick house in Area C is $97,000?

$97,000 x .00325 = $315.25

10. Which is more - the amount repaid on a mortgage for $67,900 for 15 years at 9 % or the amount repaid on a mortgage for $67,900 for 40 years at 7 %? Use the table.

67,900 / 1,000 = 67.9 67.9 x 10.14 = 688.51 688.51 x 12 = 8,262.12 8,262.12 x 15 = 123,931.80 40 years @ 7 % will cost more

11. What is this meter reading?

6847 Remember: Meter readings - Go with the smaller number*

15. Find the amount to be paid by the mortgage insurance company for a claim on an $89,000 mortgage. The company pays 37 %.

89,000 x .37 = $32,930

2. If you earned $1,500 a month, how large a mortgage could you get?

C. $45,000 $18,000 x 2.5 = $45,000

12. How many kilowatt hours were used between these meter readings: March meter reading; 2750. April Meter reading; 3049? If the unit cost per kilowatt hour is $0.11, then how much is the bill for this month?

March: 2750 April: 3049 3049 - 2750 = 299 units 299 x .11 = 32.89