Apps 2- Exam 4.4 vehicle insurance, dealer cost

Steven is the principal owner of his vehicle. His driver-rating factor is 1.60. His insurance includes 25/100 bodily injury and $25,000 property damage. His vehicle is in age group B and insurance-rating group 11. He has $50-deductible comprehensive insurance. He takes NO collision. What is his annual premium?

**Use Vehicle Insurance worksheet**

Formula: Annual Base Premium = Liability Premium + Comprehensive Premium + Collision Premium

Formula: Annual Premium = Annual Base Premium × Driver-Rating Factor

• $454.00

• $474.24

• $296.40

• $280.00

Maria’s sports car is used primarily on the weekends, she keeps minimal insurance coverage of 25/50 bodily injury and $25,000 property damage. She also has $50-deductible comprehensive insurance and collision insurance. Her driver rating is 1.30 and the vehicle is classified as C-15. What is her annual premium?

**Use Vehicle Insurance worksheet**

Formula: Annual Base Premium = Liability Premium + Comprehensive Premium + Collision Premium

Formula: Annual Premium = Annual Base Premium × Driver-Rating Factor

• $656.00

• $813.80

• $626.00

• $890.00

Mario is shopping for a used jeep, which is advertised for $16,284. It is 3 years old, has been driven 37,521 miles, and has no air conditioning. The used vehicle guide indicates an average retail value of $16,725. The guide also states that $950 should be deducted for lack of air conditioning and $350 should be added for low mileage. What is the average retail price?

Formula: Average Retail Price = Average Retail Value + Options – Options Deductions – Mileage Deduction

• $18,500

• $16,125

• $18,100

• $16,700

Jamie wants to buy a new sedan. The base price is $28,740 and options total $5,720. The dealer’s costs are 86 percent of base price and 90 percent of options. There is a destination charge of $400. What will Jaime pay if she pays $500 over the dealer's cost?

Dealer’s Cost = Base Price x Base price % + Options Price x Options price % + Destination Charge

• $30,764.40

• $31,987

• $29,878

• $29,900

Brianna is buying a new sports car. The dealer's base price is $23,799 and options total $2,819. There is no destination charge. The dealer pays 85 percent of base price and 90 percent of options.

How much will Brianna pay if she pays $100 over the dealer's cost?

Dealer’s Cost = Base Price x Base price % + Options Price x Options price % + Destination Charge

• $22866.25

• $27,900.00

• $22,936.25

• $25,760.00

Nick is buying a new car. The base price is $17,375. Options include air conditioning for $992, fog lamps for $279, and automatic transmission for $1,584. The destination charge is $428. What is the sticker price?

Formula: Sticker Price = Base Price + Options + Destination Charge

• $22,876

• $23,900

• $21,700

• $20,658

The cost of a car is $22,000 and the down payment is $2,200. What is the total amount to be financed?

Formula: Amount Financed = Cash Price – Down Payment

• $19,800

• $24,200

• $20,000

What is the total sticker price for this window sticker?

Formula: Sticker Price = Base Price + Options + Destination Charge

• $26,145

• $28,690

• $27,695

• $28,695

Using the following information find the Total Cost and Cost Per Mile:

Annual Variable Costs: $1385

Annual Fixed Costs: $1425

Miles Driven: 12,500

Formula: Total Cost = Annual Variable Cost + Annual Fixed Costs

Formula: Cost per Mile = (Annual Variable Cost + Annual Fixed Cost ) ÷ Number of Miles Driven

• Total Annual Cost: $2810

  Cost Per Mile: .45

• Total Annual Cost: $2810

  Cost Per Mile: .22

• Total Annual Cost: $2810

  Cost Per Mile: .55

• Total Annual Cost: $2810

  Cost Per Mile: .65

Using the following information find the Total Cost and Cost Per Mile:

Annual Variable Costs: $1854

Annual Fixed Costs: $2192

Miles Driven: 15,250

Formula: Total Cost = Annual Variable Cost + Annual Fixed

Formula: Cost per Mile = (Annual Variable Cost + Annual Fixed) ÷ Number of Miles Driven

• Total Annual Cost: $4046

  Cost Per Mile: $.72

• Total Annual Cost: $4046

  Cost Per Mile: $.27

• Total Annual Cost: $4046

  Cost Per Mile: $.98

• Total Annual Cost: $4046

  Cost Per Mile: $.65