Renting/Taxes
What is a one-time payments are renters typically required to pay in addition to their first month’s rent when they sign a lease?
Security Deposit
Which basic homeowner’s insurance category covers the extra costs of living incurred when your home is unavailable due to damage?
a. additional living expense b. personal liability c. dwelling
a. additional living expense
Which of the following is typically NOT associated with leasing a car?
a. trade-in value b. residual value c. down payment
a. trade-in value
Daily Double!!
The amount of money borrowed to purchase a home is the __________________________
Mortgage
Which of the following would be considered a financial advantage of renting a house or apartment?
a. Renters receive no federal income tax benefits.
b. Renters do not have the maintenance costs associated with home ownership.
c. Renters do not build equity on the housing they rent.
b. Renters do not have the maintenance costs associated with home ownership.
Jimmy is required to make a 25% down payment on a home that costs $98,000 in order to buy it.
What amount will Jimmy have to borrow to purchase the home?
$73,500
A new car bought for $21,504 is estimated to have a value of $8,650 after 4 years. What is the car’s total depreciation after 4 years?
$12,854
_____________________________ is the loss in value of property caused by aging and use.
Depreciation
The Twin Falls School district’s budgeted expenses is $8,240,000. Of that total $1,970,000 will come from other sources. The total assessed value of the property in Minidoka County is $8,500,000. What is the decimal tax rate needed to cover the budgeted expenses? Round your answer 5 decimal places.
.07333
Daily Double!!
Nick wants to buy a home priced at $135,700. They will need to make a down payment of 15% and pay 3% for closing costs. How much cash do they need for a down payment? How much of the purchase price will they need to borrow?
$20,250 down payment
$115,450 amount borrowed
A $37,900 truck is estimated to have a value of $7,200 after 4 years. What is the truck’s estimated average annual depreciation?
$7,675
The money paid to an insurance company for property insurance is the ________________.
Daily Double!!
The property tax rate in a city is 32 mills per $1. Find the tax to be paid on property with an assessed value of $97,000.
$3104
Janice is buying a home for $156,000 with a 15% down payment and will borrow the balance for 30 years at 8.75%. Her monthly mortgage payment will be $978.35. What is the total amount of interest she will pay over 30 years?
$219,606
Melanie Kramer bought a used car for $9,465. She paid for the car with an $1300 down payment and 48 monthly payments of $268.47. What total amount did Melanie pay for the car? What was the finance charge on the loan?
$14,186.56 total paid
$4721.56 Finance charge
________________________ is basically renting a car for a period of time based on certain stipulations.
Lease
Stacy rents an apartment for $640 a month and pays $180 for insurance and $860 for utilities annually. She can buy a similar sized home for $52,000. If she buys the house she will need to withdraw $10,400 from her savings account and lose $624 in earned interest. She estimates her home ownership expenses to be $9,300 annually and will save her $1428 in taxes. What is the total cost of homeownership for the year? Which costs more, renting or owning and by how much more?
$8496 for home ownership
Renting is $224 more
Dale plans to buy a home for $145,000 with a 15% down payment. The closing costs will be as follows: inspections, $425; legal fees, $1,295; title insurance, $190; miscellaneous fees, $345. How much cash will be due at signing? How much money will the Thompson’s have to borrow?
$24,005 due at signing
$123,250 to borrow
Daily Double!
A new car originally sold for $16,200. Seven years later it is sold for $6,950. What was the car’s rate of depreciation, to the nearest tenth percent?
8.15%
____________________________ are discounts off the price of the car offered by the manufacturer or car dealer.
Rebate