Buying a Car Math Quiz
Questions: 16 · 10 minutes
1. Your transportation budget is $700 per month. Insurance, fuel, parking, and maintenance total $310 per month. What is the largest car payment that keeps the estimate within budget?
$390
$380
$310
$1,010
2. You buy a $30,000 car, make a $4,000 down payment, and add a $1,200 service contract to the loan. Ignoring taxes and other fees, how much is financed?
$25,200
$26,000
$27,200
$35,200
3. For two loans with the same principal and APR, what is the usual effect of choosing a longer repayment term?
A higher monthly payment and less total interest
The same monthly payment and the same total interest
A lower monthly payment and less total interest
A lower monthly payment but more total interest
4. A new car costs $32,000 and loses 20% of its value. What is its estimated value after that loss?
$6,400
$24,000
$31,800
$25,600
5. A vehicle is driven 12,000 miles per year and averages 30 miles per gallon. If fuel costs $3.50 per gallon, what is the estimated annual fuel cost?
$1,400
$1,200
$1,350
$1,050
6. A car's fuel, insurance, maintenance, registration, and depreciation total $7,200 for a year in which it travels 12,000 miles. What is the cost per mile?
$0.06
$6.00
$1.67
$0.60
7. Your monthly car payment would be $420. Insurance is $140, fuel is $160, and you set aside $60 for maintenance. What is the estimated monthly transportation cost?
$780
$680
$720
$620
8. On a $28,000 car, which discount is larger, and by how much: 10% off or a $2,500 rebate?
The 10% discount is larger by $2,800.
The rebate is larger by $300.
The 10% discount is larger by $300.
They provide equal savings.
9. A car has a negotiated price of $24,000. Sales tax is 6%, and a required registration fee is $300. What is the total before any down payment?
$24,360
$25,440
$25,740
$26,040
10. Two loans have the same amount, term, payment schedule, and fees, but one has a lower APR. What should generally be true of the lower-APR loan?
It requires a larger principal balance.
It costs less in total interest.
It always has a longer repayment term.
It makes the car depreciate more slowly.
11. Offer A prices a car at $26,000. Offer B prices it at $27,200 but includes service you would otherwise buy for $600. Ignoring all other differences, which offer has the lower effective cost?
Offer B, by $600
Offer A, by $600
Offer A, by $1,200
The offers have the same effective cost.
12. For a simplified estimate using simple interest, how much interest would $20,000 generate at 5% per year for three years?
$1,000
$3,000
$2,000
$5,000
13. You make a $3,000 down payment followed by 60 monthly loan payments of $465. Excluding insurance, fuel, and maintenance, what is your total scheduled purchase outlay?
$30,900
$27,900
$31,365
$33,000
14. A vehicle's taxable price is $22,500, and the sales tax charged is $1,575. What tax rate was applied?
5%
6%
7.5%
7%
15. You owe $18,500 on your current car, but a dealer offers $16,000 for it as a trade-in. How much negative equity do you have?
$1,500
$2,500
$16,000
$34,500
16. Annual vehicle registration costs $240. When building a monthly ownership budget, how much should you set aside each month for it?
$10
$12
$20
$18