Exam 5: Making Automobile and Housing Decisions

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Terminating a lease early is typically [difficult | easy].

Mike (age 40)is purchasing his second home for $200,000 with a 25% down payment.He will withdraw some of the down payment from his IRA.He will have to pay ____ on the IRA withdrawal.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -You made an $900 mortgage payment.The interest on the mortgage for this month was $850.You have just experienced [negative | positive] amortization.

If you are buying a house that is for sale by the owners,the earnest money goes directly to the seller.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -If you drive a lot of miles each year rather than a few,the operating cost per mile will [increase | stay the same | decrease].

When you lease your apartment from the corporation that owns the building and your lease is an ownership share,your apartment is

The monthly payment is lower in a 6-year auto loan than on a 3-year auto loan.

Points paid to secure a mortgage to purchase a primary residence will generally be tax deductible as interest in the year they are paid.

Capitalized cost on an auto lease is the same as the price of the car.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -In the same geographic area,the cost of a [detached home | condo] will usually be lower.

The seller of the house typically pays the

A real estate sales contract contains the terms and provisions which establish the sale's transaction.

Which of the following is true regarding cooperative apartments?

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -The most popular type of lease is the [closed-end | open-end] lease.

The largest single investment you will undertake in your lifetime will probably be the purchase of a house.

Points can be deducted from federal income taxes in the year paid when they are used to

At the end of the lease period,you are never required to

A money factor of 0.00280 on a lease is equivalent to an annual percentage rate of

Most new car warranties cover a minimum of the first 72,000 miles or 6 years of ownership.

Sean and Lisa (age 25 and 28,respectively)are purchasing their first home for $200,000 with a 5% down payment.They will withdraw the down payment from Lisa's IRA.They will have to pay ____ on the IRA withdrawal.