1. You are shopping for a new car. The dealer offers to sell you the car for $7,000 down and 725 per month for 60 months. If the quoted rate on car loans is currently 4.8%, what is the price of the car implied by the dealers offer?
A. $14,197.56
B. $21,197.56
C. $31,605.43
D. $38,605.43
E. $45,605.43
2. Which of the following is a taxable gift?
a. an individual gifted a future interest valued at $5,000 to her friend
b. an individual gifted $25,000 to his spouse
c. an individual pays $50,000 directly to an educational institution fir the education of her niece
d. an individual gifted $25,000 to their church
3. You are considering borrowing using an adjustable rate mortgage. You have selected a three-year ARM quoted 1/1/4. How long will your initial interest rate remain unchanged?
A. 1 year B. 2 years C. 3 years D. 4 years E. 5 years