ECO 110 Week 6 Adaptive Test

 

Q 6.1: 

Brian does not have a checking account. He primarily uses money orders and certified checks to make payments. Brian is

 

 

Q 6.2: 

Seema’s cat needs dental surgery urgently. What is the best way for Seema to handle this unexpected expense?

 

 

Q 6.3: 

Mia received a credit card offer in the mail. The credit card has an annual percentage rate of 26%. What is the approximate monthly interest rate that will apply to any unpaid balances on this credit card? Assume 12 equal months.

 

 

Q 6.4: 

Kingston obtained a loan for $1,000 to be paid back in 30 days. The lender quoted Kingston a $200 fee. Which of the following statements is correct regarding this loan?

 

 

Q 6.5: 

Gabe needs to borrow $450 to cover the deductible for an unexpected medical expense. Which of the following options would minimize borrowing fees?

 

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Q 6.6: 

Carlos chose to get a payday loan for 14 days and borrowed $600. What total amount of fees will Carlos pay for the payday loan based on the average fees charged for payday loans?

 

A borrower might benefit from a  federal subsidized loan federal unsubsidized loan public service loan forgiveness program PLUS loan

 if they decide to work for either a nonprofit hospital or public health organization.

 

Q 6.8: 

Kirsten has a federal student loan and has just finished school. How soon will Kirsten have to start repaying the loan?

 

Q 6.9: 

Which of the following loans would be most appropriate for Tammy, a graduate student who does not show financial need and has no other debt?

 

Q 6.10: 

Amal has a Revised Pay as You Earn (REPAYE) plan loan to pay for the cost of college. Based on the terms of his loan, he must pay $500 a month to pay his loan off in 10 years. Amal’s monthly discretionary income is $800. What is the maximum monthly payment that Amal will be required to pay based on the current discretionary income?

 

Q 6.11: 

Portia leased a car with a fair market value of $36,000 and has paid $12,000 in payments. How much equity has Portia built since the car was first leased?

 

Q 6.12: 

Geraldine purchased a car with a fair market value of $36,000 and currently owes $14,000. How much equity has Geraldine built since she first purchased the car?

 

Q 6.13: 

Paco is considering the purchase of a used car. Paco currently has excess monthly cash flow of $490 available for vehicle payment and other associated expenses. Paco estimates the following monthly expenses for the car: $60 for gas, $70 for insurance, $15 for maintenance, and $10 repairs. What is the amount Paco has remaining for the loan payment each month, based on the information given?

 

Q 6.14: 

Emberly just graduated college and is thinking of gifting herself a car. What’s her next step?

 

Q 6.15: 

According to HUD, if your pretax income is $4,000, you should pay no more than 

 

Q 6.16: 

Shaun moved out of an apartment and received a check for $325 from the landlord. The check represents

 

Q 6.17: 

Mayme is moving to a different state for a new job and is researching housing options in the area. Which of the following characteristics would be considered a disadvantage when evaluating whether to buy versus rent?

 

Q 6.18: 

Maria owns a house with a fair market value of $275,000. When Maria purchased the house she paid $210,000 but that was several years ago. She currently owes $195,000. How much equity has Maria built since she first purchased the house?

 

Q 6.19: 

Terrance currently earns $3,500 per month and is looking to buy a house. Terrance has the following monthly debt payment expenses: $75 for credit cards, $125 for student loans, and a $235 car payment. The monthly mortgage, including principal, insurance, and taxes, is $900. Does Terrance meet the FHA housing payments-to-income ratio guideline?

 

Q 6.20: 

Eduardo is about to buy a house and is trying to understand his mortgage options. If he picks a