OWNIN& & OPERATIN& A VEHICLE UNIT Review. PART I: SHORT ANSWER. Place your answer to each question in the space provided. (10 x i)

Transcription

1 1VIES4OS Name: Date: OWNIN& & OPERATIN& A VEHICLE UNIT Review PART I: SHORT ANSWER. Place your answer to each question in the space provided. (10 x i) 1. Which of the following causes your insurance rate to be higher? Check(X). $200 Deductibe or $500 Deductible +10 Merits or -10 Merits $ Third Party or $ Third Party Used Car or Brand New Car 2. A new vehicle has a base price of $ If freight charges are $1400 and there is a Trade in worth $5000, find the Purchase Price.(before taxes) 3. The monthly lease payments on a vehicle are $350 (plus taxes) for 3 years. Find the total amount of money spent on the lease over 3 years. 4. Using your Finance table for monthly car loans, find the monthly payment for a $9000 car loan amortized over 4 years at 7.25%. 5. A mechanic charges $75 for parts to fix a wheel as well as 0.6 hours for labour. If the shop rate was $80 per hour, find the sub total of the bill before taxes.

2 6. A car can travel 630km on a full tank of gas. If a fill up is 62L of fuel, find the fuel economy of the vehicle in L/100km. 7 If you have +2 Merits and your car's base insurance is $1550 per year, how much do you actually pay based on your Merits and Your Driver Premium. Use the chart. PART II: LONG ANSWER. Show all your work for FULL MARKS. Finish your answers with a correct unit of measure. (Be sure to include ALL appropriate taxes) 1. Madonna bought a 1990 truck from her neighbor in a private deal for $ To complete the deal she completed the following items: a lien search for $5, a mechanical check for $50 and some needed repairs totaling $500. The owner completed a safety check. If the book value of the truck is $5 000(This is used for PST on the purchase), find the total cost of purchasing it. (1 x 3) 2. Shayne bought a cool 2013 Mustang convertible with a base price of $ He selects the following optional equipment: power package for $2200 and an exterior trim package for $1050. The freight and excise air conditioning tax is $1750. He gets a trade in allowance of for his old car. Find the total cost of the car. (1 x 3) 2

3 3. Heather bought a 1996 Hummer for a steal, only $ She managed to make a down payment of $ Last week she went to the bank for a loan with terms 8% for 5 years. Using your monthly payment chart, answer the following questions: a) What is the amount of her loan? (1 x 1) b) What will her monthly payment be? (1 x 2) c) What will the car have cost Jessica at the end of 5 years? (1 x 2) 4. Mark is leasing a new Astrovan. His monthly lease payments will be $345 per month. The van has a sticker price of $ Mark put down a deposit of $3 500 and signed the lease for 3 years. If the residual value of the car is 45%, how much can Mark expect to spend (in total) to buy the car at the end of the lease? (Be sure to inctude ALL appropriate taxes) (1 x 3) 3

4 5. Carson went for a trip in his black 4X4 bodge Ram. He filled up the gas tank before he left. The odometer reading was The first stop WQS Virden Mb, where he filled his tank with 65.5L of fuel. The odometer reading here was (3 x 1) a) How many kilometers did he drive? b) What was his fuel economy in L/100km? c) If gas cost $1.24/L, how much did the fill up cost? 6. Find the residual value of a vehicle after 3 years if the original value of the vehicle was $ and the car depreciated by 25% the first year, 20% the second and 15% the third. (1 x 3) Year 1 = Year 2 = Year3 = 4

5 Purchase and Lease of a Car 7. John is buying a new car that costs $ It is getting shipped from Ontario and has a freight charge of $1750. It also has an air conditioning tax of $200. He has also chosen an option package that costs $2500. He is trading in his old car and getting $4400 for it. GST and PST also need to be applied. How much will John have to pay for this car? (2) 8. Give the definition of Depreciation Value when leasing a vehicle. 9. List an advantage and disadvantage for buying a vehicle. (2) 10. "T.O.D." stands for? 5

6 11. A new car has a purchase price of $ and can be purchased or leased. GST and PST apply to the car. OPTION 1 - Purchase. You have a down payment of $ The car is purchased and paid for monthly for 4 years with a 5.57 interest rate. a) What is the total cost of the car, including taxes? b) How much money will have to be borrowed to buy the car? c) Using your Finance table for monthly car loans, what is the monthly payment for the car? d) Over the lifetime of the loan, how much will be paid for the car? e) How much interest did you pay to the bank? 6

7 OPTION 2 Lease and Purchase. You have a down payment of $ The lease payment is $455 / month. After monthly payments for 4 years the car is purchased for $ (Don't forget taxes!) Answer the following: a) What is the monthly lease payment including taxes? b) What is the total of the lease payments over the 4 year period? c) What is the total amount paid for the car after the lease, including the down payment, and the residual buyout. (2) d) Which is the better option and why? 7

8