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of a vehicle over the first five reveals that the greatest 20) years 20) Average

ID: 2751769 • Letter: O

Question

of a vehicle over the first five reveals that the greatest 20) years 20) Average ownership costs cost is due to D) fuel costs A) maintenance B) taxes deprecia 21) Which of the following statement is regarding P rent or A) an individual's PITIcost should not exceed of herhis current monthly B) paymen income an individual's PITI cost should not exceed 36% of herhis pretax monthly c PITI cost should not exceed 36% herhis mongage payment. an individuals PITI cost should not exceed 28% of herhis pretax monthly income. 22) 22) Liability coverage of your auto insurance pays for A) damages to your car only if the other person was at fault. C) damages to your car. o the other person's car. erminant of the cost of your automobile insurance 23) Which of the following is NOT a det A) your age C your credit score D) your marital status E your driving record 24) The rate is the interest to be paid annually on a bond as a percentage of its par 24) value. A) face interest B) compound interest coupon interest D base E) none of the above 25) As a young college graduate, your biggest investment ally is 25) A) time B a windfall C) tax-free investments D) derivatives. E) leverage 26) If an individual investor wishes to purchase stock ofa corporation, where does he/she needs to 26) go for the purchase? A) To the secondary markets B) To a Stock Broker C) To the primary market D) To an Investment Banker

Explanation / Answer

Depreciation because it will be based on the value of the car, which will be charged at higher rate.

Option D

Option C

Option B

Coupon Interest

Option E as in young age there is high audacity to take risk

Primary market as corporation stocks are not traded on secondary market.