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Planning for Major Purchases Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. How can a mortgage loan be beneficial?

Question 2 2.

For this problem, what number would you plug into n?

A car costs $30,000. The installment purchase has terms of monthly payments for 7 years with an annual interest of 4 percent.

Question 3 3. Which type of mortgage can be obtained by men and women who have served in the armed forces, and their family members?

Question 4 4. Which type of mortgage loan maturity provides the smallest monthly payment but most interest over the life of the loan?

Question 5 5. What is one advantage of leasing a car?

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Question 6 6. Which answer best defines negative equity?

Question 7 7. What is TRUE about mileage restrictions?

Question 8 8. Sue is interested in purchasing her first home, which is $200,000. She has only around $8000 for down payment and has never served in the military. Which type of loan would be most appropriate for Sue?

Question 9 9. Tony wants a new car but cannot afford it. What advantage would Tony have if he leased a car?

Question 10 10. Purchasing an item now and agreeing to pay for it in a series of future payments is known as a/an _____.

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Question 11 11.

For this problem, what number would you plug into L?

A car costs $30,000. The installment purchase has terms of monthly payments for 7 years with an annual interest of 4 percent.

Question 12 12. Which of the following BEST defines a down payment?

Question 13 13. A car costs $24,000. The installment purchase has terms of annual payments for 5 years with an interest of 3 percent. What is the yearly payment?

Question 14 14. Which of the following is an example of an installment purchase with simple terms?

Question 15 15. Identify the best description for the term 'principal'.

Planning for Major Purchases Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Finance 102: Personal Finance  /  Business Courses
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