# Chapter 4 Practice Test - Consumer Mathx

advertisement ```Chapter 4 Practice Test
CONSUMER MATH
MASTERY TEST A
Chapter 4 Practice Test
1. Eric’s income is \$766 every two weeks. Use the
renter’s rule to compute the most Eric should
spend for rent each month.
\$766 &divide; 2 = \$383
* Renters Rule: The renter’s rule says you
should spend no more than one week’s
income for a month’s rent.
Chapter 4 Practice Test
2. If Eric pays \$375 for rent each month, what is his
total rent paid in one year?
\$375 x 12 = \$4500
Chapter 4 Practice Test
3. Ms. Burke earns \$32,000 per year and plans to buy
a house. Use the banker’s rule to determine her
maximum allowable mortgage.
\$32,000 x 2.5 = \$80,000
* Banker’s Rule: The banker’s rule says that
you may borrow up to 2.5 times your annual
income to buy a home.
Chapter 4 Practice Test
4. Leo wants to buy a house for \$128,000 with a 20%
down payment. How much will his down payment
be?
\$128,000 x .20 = \$25,600
5. What is the amount of the mortgage for Leo’s house?
\$128,000 - \$25,600 = \$102,400
Chapter 4 Practice Test
6. What is the monthly payment on an 8% 30-year mortgage for \$68,000?
\$7.34 x 68 = \$499.12
7. Compute the total amount repaid on a mortgage for \$70,000 at 9% for 35 years.
\$7.84 x 70 = \$548.80
\$548.80 x 420 = \$230,496
Chapter 4 Practice Test
7614
8322
10. Compare the two electric meter readings above. How many
units of electricity were used during the month of April?
8322 – 7614 = 708
Chapter 4 Practice Test
11. The natural gas rate is \$0.72 per unit. A customer
uses 158 units. How much is the bill?
\$0.72 x 158 = \$113.76
12. The monthly flat rate for Tim’s telephone is \$19.95.
He is charged \$1.85 for a long distance call and \$1.76
for taxes. What is the total bill?
\$19.95 + \$1.85 + \$1.76 = \$23.56
Chapter 4 Practice Test
13. Find Jessica’s utility expenses. The following
amounts are due:
Telephone, \$18.56
Electricity, \$39.92
Water, \$2.73
Gas, \$37.84
\$18.56 + \$2.72 + \$39.92 + \$37.84 = \$99.04
Chapter 4 Practice Test
14. A wood frame house in Area A; its value is \$56,800.
\$56,800 x 0.0045 = \$255.60
15. A brick house in Area B; its value is \$98,000.
\$98,000 x 0.0041 = \$401.80
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