Name_______________________
Consumer Math
Final Exam Review – Chapters 9 and 10
Chapter 9
Sticker Price – When you purchase a vehicle you are going to be paying the sticker price of the vehicle; a
retail price. This includes the base price of the car, plus any optional equipment included as well as a
destination charge to ship the vehicle to that dealership.
1. Jerome purchases a new 4-wheel drive truck that has a base price of $34,000. The vehicle has a
few additional options that total $3,500 as well as a destination charge of $650. What is the
total cost Jerome must pay to purchase this vehicle?
Dealer’s Cost – When dealer’s purchase a vehicle from a manufacturer they pay the same 3 categories
as you, but they only pay a specified percentage of the base and options; a wholesale price. They have
to pay all 100% of the destination charge.
2. Independent Auto is getting a new car in this week. The base price of this car is $28,000, but as
a dealer they only have to pay 85% of this cost. This car also has $2,000 worth of options, but
they only have to pay 91% of this cost. This car also has an $825 destination charge. What is
the total cost to the dealer?
Purchasing a Used Vehicle – When purchasing a used vehicle you can research online how much you
should expect to pay for a similar model. In addition to whatever this base price is, you will be paying
extra costs for any additional options that are included. You might also have a deduction if the car
doesn’t have air conditioning or another generally included option. Also, you will deduct cost based on
mileage; as the more miles a car has, the less it is valued.
3. Daffney will be purchasing a used vehicle that sells for $9,800. It has additional options of $300
for new tires and rims and a $500 sunroof. If the car has 60,000 miles, and there will be a $700
deduction for these miles, what is the total cost Daffney should pay for this car?
Leasing a Vehicle – Aside from purchasing a vehicle, you can lease a vehicle. This essentially is paying a
lower monthly fee than buying it, but at the end of a few years lease you don’t own the car. There are
open-ended leases where you can purchase the vehicle at the end of the lease, but they are generally
strictly worse than just buying the vehicle from the start. There are some additional fees we also add
when finding the cost of a lease.
4. John decides to lease a new 2016 car. His monthly lease will cost $219 for 36 months. There is
also a $2,000 deposit, a $50 title fee and a $200 license fee. How much will John pay total for
this 3 year lease?
5. Ruth has an open-ended lease where she will purchase the leased vehicle at the end of the
agreement. She will pay $249 per month for 39 months as well as a $1,000 deposit, $100 title
fee and $100 license fee. At the end of these 39 months, the purchase price of the car will be
$14,500. How much will Ruth pay total for this lease including purchasing the vehicle at the end
of the lease?
Renting a Vehicle – If you ever travel somewhere, you might need to rent a vehicle for a few days.
There will be a cost per day as well as an insurance fee per day (although you should check with your
regular car insurance to see if you are covered and may not need the extra insurance). You will also be
responsible for any gas you use; the gas needs to be refilled before returning the car. Also, some rentals
require you to also pay a fee per mile you drive the car, as this is wear and tear placed on a car.
6. Janice is on vacation in Florida and needs to rent a car for 3 days. The rental she chooses costs
$25 per day and in addition there is a $10 per day insurance fee. After 3 days Janice returns the
car has spent $62.19 on gas. What is the total cost of renting this vehicle for Janice?
7. Eve is renting a minivan that costs $45 per day. There will also be a $7 per day insurance fee
and a $0.10₵ per mile driven fee. Eve rents this van for 5 days, drives 254 total miles, and
spends another $32.20 on gasoline. What was the total cost of renting this van for Eve?
Chapter 10
Mortgage Loans – When you purchase a home you will take out a mortgage loan to pay for the house
for the next several decades. You borrow an amount equal to the cost of the house minus any down
payment.
8. Courtney is buying her first home for a price of $236,500 and her bank requires a 20% down
payment.
a. What is the dollar amount of her down payment?
b. What is the amount of her mortgage?
Closing Costs – Buying a house has more costs than just the house itself. There are other costs we must
pay for. Generally, these costs can be financed and included in your mortgage. Sometimes these costs
are a percentage of how much your house costs.
9. Jennifer is buying a house for $135,000. She has a $25,000 down payment and the following
closing costs: $200 application fee, $300 appraisal fee, $200 title search, $400 title insurance,
$450 inspection, and a processing fee that costs 1.5% of her house price.
a. What is the total for her closing costs?
b. How much will her mortgage be if she can finance her closing costs?
Real Estate Taxes – Owning your home requires you to pay real estate taxes. You will pay taxes on a
percentage of the value of your home.
10. Matthew’s home is worth $195,000. His town has a rate of assessment of 35% of a home’s
value. Their tax rate is $25.20 per $1000 (or 25.2 mills) of assessment.
a. What is his home’s assessed value?
b. How much does Matthew pay for real estate tax?
Total Housing Costs – Generally, it is recommended that you spend no more than 35% of your income
on housing costs.
11. Susan had the following housing costs for the past month: $480 mortgage, $82 homeowners
insurance, $155 real estate taxes, $64 electricity, $60 heating fuel, $25 water, $12 garbage
removal, and $74 for small repairs.
a. How much total did Susan spend on housing costs?
b. If Susan has a gross income of $3,650 a month, is she over or under the recommended
35% guideline?