Topic Test

Question 1

Without buying points, a monthly mortgage payment will be $1,250. Buying 1 point at closing would reduce the payment to $1,236. To the nearest year, how long would it take to break even by buying 1 point, with a $100,000 mortgage?

Revolt · Accepted Answer

6 years

Question 2

Which of the following is an advantage of renting?

Revolt · Accepted Answer

ease of mobility

Question 3

The Picketts have lived in their house for about 13 years. They like to keep a well-maintained property and have noticed that the paint on the exterior of their house is starting to peel. They get two bids for painting services from two different contractors. Based on the fee schedule below, which option would be the cheapest and by how much?Handyman’s Paint ServicePainting Plus Service$2250 all supplies and labor included for a 2-day jobTwo day job estimate $300 preparation work $765 labor per day $225 paint and supplies

Revolt · Accepted Answer

Painting Plus Service would be cheaper by $195

Question 4

The climate in which Jonah lives is mild all year long except during the hotter summer months. For 3 months out of the year, Jonah needs to use 4 portable fans to cool his home. If the electricity to use one fan costs 1 cent per hour and each fan is on for about 96 hours per month, what is his total electricity cost for the fans during one year?

Revolt · Accepted Answer

$11.52

Question 5

Three friends decide to rent an apartment and split the cost evenly. They each paid $640 towards the total move in cost of first and last month's rent and a security deposit. If rent is $650 per month, how much was the security deposit?

Revolt · Accepted Answer

$620

Question 6

Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with a monthly income of $3,200.

Revolt · Accepted Answer

$256

Question 7

Think for a moment of the description of what the traveler saw in “Ozymandias.” Now provide your own brief description of other images, sights, sounds, and smells—things beyond “the decay / Of that colossal wreck”—which might have been part of that physical setting.

Revolt · Accepted Answer

Beyond the broken statue, I imagine a vast desert blazing under a white-hot sun. Sand would hiss and drift in the wind, scraping against the stone like whispers. The air would smell dry and dusty, with the faint scent of heated rock. Everything would seem silent except for the wind, making the setting feel lonely, ancient, and forgotten. In the distance, the empty horizon would stretch without end, emphasizing the ruin’s isolation.

Question 8

The Johnsons are buying a house that costs $210,000 and can afford a 20% down payment. If the Johnsons want the lowest monthly payment, which loan option would you recommend?

Revolt · Accepted Answer

30 year fixed, 20% down at a fixed rate of 6%

Question 9

Keyon and two of his friends are going to rent a 3 bedroom apartment for $840 a month. The security deposit is $500 and the pet deposit is $265. In addition to the deposits, Keyon and his friends must pay first and last month's rent. If they split the cost evenly, how much will each pay to move in?

Revolt · Accepted Answer

$815

Question 10

Jack is trying to determine how he can save money by cutting his electricity bill. He is currently on a standard use plan for electricity and pays 7.5 cents per kWh. He keeps track of when he uses electricity and is thinking about switching to an interval use plan for electricity which costs 3 cents per kWh for off-peak use and 15 cents per kWh for on-peak use. Off-peak hours are from 8PM - 8AM and on-peak hours are from 8AM - 8PM. Below is the chart of his electricity usage:Jack’s Electricity Usage Per Month1200 kWh between 8PM and 8AM400 kWh between 8AM and 8PMExplain and justify which plan would best suit his needs.

Revolt · Accepted Answer

Jack should switch to the interval use plan, which would save him $24 per month.

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