Exam 3 answers
Terms in this set (35)
personal loans include the following except
the size of the monthly payment on a loan is dependent on all of the following except
in a loan repayment schedule, the term AMORTIZED refers to
the repayment of the principal through a series of equal payments
over the life of a loan, the payment is principal _____ and the portion to interest expense _____.
if you agree to allow the lender to take your computer in the event you fail to make payments, the loan is which of the following?
which of the following methods of calculating interest is the most expensive
you obtain a loan of $3000 based on simple interest with an annual interest rate of 12%, or 1% a month. if the first payment is $300, how much is the principal portion of the payment?
you obtain a loan of $3000 to be repaid over one year. assume you are charged 12% intreats based on the add-on method. your monthly payments would be
which of the following is a true statement about student loans?
interest payments are often deferred until the student graduate and enter the workforce
you have a home with a market value of $200,000. your total equity in the home is $40,000. the maximum home equity loan available if the bank will loan 80% based on equity invested is
if you borrow an $8000, 6.75% home equity loan, what is your tax savings for one year assuming your marginal income tax rate is 15%
all of the following are reasons to avoid payday loans except
you don't want to pay interest on your credit card that charges an annual rate of 18%
to determine how much home you can afford to purchase, you should not consider
possible future raises you will receive
when buying a home, all of the following are factors one should consider except
the exiting interior paint colors
you are considering to purchase a 2300 sq. foot house that is being offered for $238,500. after researching recent home sales in the area, you find three that are comparable. the first was 2500 sq foot home that sold for $225,000, the second was 2,200 sq foot home that sold for $200,000 and the third was a 2000 sq foot home that sold for $178,000. based on your analysis, what would be a reasonable offer on the house?
of the following fees involved in the purchase of a house, which is usually not borne by the purchaser?
chuck obtain a mortgage of $90,000 to finance a $120,00 home. the title search will be $400, appraisal fee $500, application fee $900, and he will pay 1% origination fee. how much are his closing costs?
making extra mortgage payments does which of the following
reduces the length of the loan
the initial rate on an ARM will typically be
relatively low to benefit the homeowner
if a current mortgage payment of $792 per month can be reduced to $578 per month by refinancing, how many months would you need to remain in the house to recoup refinancing charges of $3274? the marginal tax rate is 15%
the primary function of insurance is to
maintain your existing level of wealth
independent insurance agents
represent many different insurance companies
the comprehensive or collision premium of a rolls-royce in relationship to a chevy
will be higher because a roll-royce cost more than a chevy
the 100 in 100/300/50 refers to the
limit for bodily injury
the 25 in 50/100/25 refers to ___ coverage
property damage liability
all of the following may qualify for an auto discount except
under 25 years old
events that are typically not covered by your homeowner's insurance include all of the following except
explosion of frozen pipes
you have cash value coverage for your personal property on your homeowner's policy. a camera that cost you $300 eight years ago had a life expectancy of 10years. the camera was stolen, and a new one will cost only $200. how much will the insurance company pay?
to cover additional personal property not adequately covered by your homeowner's policy, you should take on an _____ policy
personal articles floater
how much coverage would be provided under a standard homeowner's policy if during an unusually heavy rain the basement becomes full of water and an antique dresser from the 1860's was destroyed? the dresser was originally purchased for $1300 10 years ago, was recently appraised for $2600 and you recently received an offer from an antique collector for $3100. how much would be received from your insurance company to cover the loss?
which of the following is true of renter's insurance?
your renter's insurance covers only your own property, not the property of your landlord
regarding the definition of disability
it varies from one disability policy to another
term insurance provided to designated group of people with a common bond is called
group term insurance
the most accurate method of determining life insurance needs is
the budget method
sam figures it will take $250,000 invested at 6% to provide suitable income to his family for 12 years. he would also like to have $40,000 set aside to educate his tow children. sam's current savings is $20,000. how much lie insurance does he need using the budget method?