Unit 8 Review - Car Ownership

Given below are lease terms at the local dealership. What is the total cash due at signing?Terms:

Length of lease: 18 months

MSRP of the car: $22,750

Purchase value of the car after lease: $16,900

Down payment: $1800

Monthly payment: $425

Security deposit: $400

Acquisition fee: $300

• $2500

• $2250

• $2925

• $375

If the lease factor is given as 0.0030, what interest rate is that equivalent to?

• 2.0%

• 7.2%

• 1.84%

• 4.8%

Susan wants to rent a car for 4 days, and she's interested in the loss damage waiver but not the collision damage waiver. If the daily rate is $39 and the LDW is $65, what is her total rental cost?

• $257

• $228

• $238

• $221

Apex Car Share Inc. offers car sharing for a $119 yearly fee plus $19 per hour for the use of its car share. What is the total cost for a person who purchased a car share and used it for 42 hours total time?

• $819

• $901

• $717

• $917

Company A charges $125 annual fee plus $5 per hour car share fee. Company B charges $80 plus $10 per hour. What is the minimum number of hours that a car share needs to be used per year to make company A a better deal?

• 11

• 10

• 9

• 6

A new car has a sticker price of $25,750, while the invoice price paid on it was $21,950. What is the percentage markup?

• 10.45%

• 12.76%

• 17.31%

• 11.56%

Eva is purchasing a car whose MSRP is $24,750. She has asked for an upgrade to a premium package for which the cost is $3000. The delivery of this vehicle is an additional $700. Eva will trade in her own car, and the dealer has offered her $5000. If Eva agrees to this, what will be her total price for the vehicle?

• $20,150

• $23,450

• $18,450

• $15,750

• 0.0035

• 4.2

• 0.42

• 0.0042

What would a monthly payment be on a purchase of a $11,000 car at 6.9% for 3 years?

• -$344.19

• $334.39

• $339.15

• $344.19

An increase in which of the following will decrease the monthly payment?

• Trade-in Value

• Interest Rate

• Principal

• None of these