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1 Essential Math 12 -Vehicle Finance Sample Exam Questions 1. Sally recently graduated from college and has started working at her first job. She has decided to lease a car. State one reason why leasing may be a good choice for Sally. Justify your reason. (2 marks) (he/ MI-vi-ii;(7 1-C" cc.+1,7 Cel 2. Lindsay takes her car to a Manitoba car dealership for servicing. The dealership charges $95 per hour for labour. The following items were replaced: four (4) spark plugs for $2.25 each, one (1) air filter for $12.50 and one (1) headlight for $30. The job took 1.25 hours to complete. Calculate the total cost of repairs including taxes (8% PST and 5% GST). (5 marks) Qty Description Unit Price Total )ttult pir,---,a, 2 -> 0 0 C 7 1 i ti 2_5 Iv ir\i-,a ( ( j -I-k litoyijts SO i 0 qcce, Pr( -2- i.w i L I Pc 37c, V',1---, A e, sk

2 Essential Math 12 - Vehicle Finance Sample Exam Questions Page 2 3. Maryann borrows $12,500 from her bank to purchase a car. The bank offers her a rate of 6.75% per year for 5 years. Monthly Vehicle Loan Payments per $1 MO borrowed Interest Rate % 1 Years to Repay Loan , _ , , , _ : eso as aas , A c ; e_ ,99 24, , _28 a) Calculate the monthly payment. (2 marks) b) Calculate the total amount of interest paid over the life of the car loan. (2 marks) (2 '

3 Essential Math 12 vehicle Finance Sample Exam Questions Page 3 4. Drew has recently purchased a vehicle for $17,100. He borrowed $15,000 at 6.25% interest for 5 years. Complete the amortization table below. (3 marks) Month Monthly Payment Interest Pnneipal Unpaid Balance n $ $78.13 $ $ $ $77.01 $21434 H 571. v( a icile $ Choose the letter that best completes the statement below. (1 mark) When purchasing car insurance, a deductible is: a) the amount you pay every year for the insurance. b) a one-time lump sum you pay the insurance company when you first buy the car. (9;) the amount of the insurance claim you must pay when at fault for an accident. d) the amount you pay for extra coverage against damage to another person or their property. Answer: C,

4 Essential Math 12 Vehicle Finance Sample Exam Questions Page 4 6. State and explain two (2) factors that may increase a car insurance premium in Manitoba. (4 marks) Factors I. Explan tion / Li 1,.--1 Ī 7 2. c.) c <- V 0 ) L.- ) Explain why a car insurance policy with a $200 deductible will cost more than a similar policy with a $500 deductible. (1 mark)

5 Essential Math 12 -Vehicle Finance Sample Exam Questions Page 5 8. You are purchasing a vehicle. The bank will lend you $16 500, repayable over 3 years at an interest rate of 4.25%. Calculate the monthly payment. 2 vw. Monthly Vehicle Loan Payments per $1000 borrowed Interest Rate (%) 1 Years to Repay Loan _42 4, c _75 85_ _ ,87 5_ _ , , _18 44, _71 6_ _ , , r , _ _ ,41 20_28 >Ja 9. Tom wishes to buy a new car in Manitoba for The car dealership has agreed to accept Tom's old car with a trade-in value of $2000. Calculate the total cost including taxes to buy the new car. (2 marks)

6 Essential Math 12 Vehicle Finance Sample Exam Questions Page Describe one (1) advantage and one (1) disadvantage of purchasing a new car instead of leasing one. Advantage of purchasing Disadvantagepurchasing s r,. j.a...-4a kni a. l < You are leasing a vehicle. The monthly lease payment is $299 plus taxes for 36 months. The lease requires a $4,500 down payment. a) Calculate the total amount paid over 36 months. (3 marks) ;7S xi i;, 37, e / /2 5' 3 L ,... Mgadlf.246,01.111/6PF l) You choose to purchase the vehicle at the end of the lease for the residual value (75% of the original value). The original cost of the vehicle was $34,000 plus taxes. Calculate the total amount paid for the vehicle. (2 marks)

7 Essential Math 12 Vehicle Finance Sample Exam Questions Page Phillip buys a used car for $1,500. The price of a safety inspection on the car was $40. When registering the car, Phillip is told that the book value of the car is $3,700. Calculate the total cost of purchasing the car. (3 marks) 13. Nancy is going on a 1,300 km car trip. Her car's fuel efficiency is 8 L/100 km. The average price for fuel on her trip is estimated to be $1.20 per litre. Calculate the cost of fuel for her trip. (2 marks) 14. Tom decides to buy a new car in Manitoba for $32,400. He adds a tow package to the car for $3000. The freight is $650. The dealership gives him $12,000 for his old car. Calculate the cost, including taxes, of purchasing the new vehicle. (3 marks) 3"a f b

8 Essential Math 12 - Vehicle Finance Sample Exam Questions Page Mary borrows $18,500 from her bank to purchase a car. The bank offers her an interest rate of 6.75% for 4 years. Interest Rate (%) 1 Monthly Vehicle Loan Payments r $1000 borrowed Years to Repay Loan , , , l ,50 86_30 44_ ' , _ _ _ , ,30 20_ _ a) Calculate the monthly payment. (2 marks) b) Calculate the total amount of interest paid over the life of the loan. (2 marks) ///

9 Essential Math 12 Vehicle Finance Sample Exam Questions Page Dallas needs a vehicle to get to work. He has decided which vehicle he wants. State two (2) advantages of buying the vehicle, rather than leasing it. (2 marks) (:)1A4 C Ow \ (>64,2) ft-v a ett- tzir-c ID il t/ It Ic cytiv-t, e 17. Tom's vehicle uses 12.8 L of fuel for every 100 km driven. The cost of fuel is $1.20/Litre. Calculate the cost of fuel for Tom to drive 3,000 km. (2 marks) 6±IL,< p ig L L.-) 2 t-= (7 18. Robert took his vehicle in for servicing at a Manitoba dealership. The dealership charged $90 per hour for labour. The servicing took 1.5 hours to complete. Two (2) windshield wipers were replaced at a cost of $12 each. Four (4) winter tires were put on at a cost of $120 each. Calculate the total cost, including tax, of the servicing. (4 marks)

10 Essential Math 12 Vehicle Finance Sample Exam Questions Page State two (2) factors that determine the cost of vehicle insurance in Manitoba. (2 marks) 17 Uv-) 20. Tammy drives her car 20 kilometres to work each day. State the type of insurance policy Tammy will need for proper coverage. (1 mark) \)U 1.)(3S-e Jack wants to lease a vehicle for 3 years. The monthly lease payment is $479 plus both taxes. A down payment of $3,000 is required. a) Calculate the total cost of the lease. (2 marks) 1/ 9 / 9 A 3f0 7 b) Jack decides to purchase the vehicle at the end of the lease. The initial value of the vehicle was $43,900 including taxes. Its residual value after 3 years is 40%. Calculate the total amount he will pay for the vehicle. (2,markst-----,

11 Essential Math 12 vehicle Finance Sample Exam Questions Page Describe one benefit of buying a new vehicle and one benefit of buying a used vehicle. (2 marks) \pia _ v cilh,a1 23. The odometer reads km before Sandra leaves for a trip. After using 83.9 L of fuel, the odometer reads km. Determine the fuel efficiency of her vehicle in L/100 km. (2 marks)

12 Essential Math 12 Vehicle Finance Sample Exam Questions Page Brian bought a car valued at $58,600. It depreciates 20% the first year and then 15% each year after. Complete the table to find the value of the vehicle after 3 years. (6 marks) Year Vehicle Value Depreciation aunt Year-end Value of Vehicle $58, i i r O. ""/ L)

13 Essential Math 12 -Vehicle Finance Sample Exam Questions Page John borrows $26,750 at 7.50% over 4 years to purchase a car. Interest Rate (%) Monthly VehicLoan Payments r ;1000 borrowed Years to Repay Loan _ ,75 22_ _ _ ,25 85_72 43_98 30_ , _ _ _ _55 30,65 23, _ se , _76 45_00 C24_4_8 ) _ _28 a) Calculate his monthly payment. (2 marks) t7 5 0 :2 i s ( zi-2) A-u5 b) State the amount of interest paid in the first month. (1 mark)

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