FIN-1100 Chapter Notes - Chapter 5: Va Loan, Annual Percentage Rate, Real Estate Settlement Procedures Act
2 Jun 2017
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Pfin chapter 5 review- making automobile and housing decisions. L01- design a plan to research and select a new or used automobile. Knowing the dealer"s cost is the key to negotiating a good price. L02- decide whether to buy or lease a car. Consider all the terms of the lease, including the annual mileage allowance and early termination penalties. The economics of leasing versus purchasing a car with an installment loan should not be considered until the price is set. The four components of the lease payment are the capitalized cost, residual value, money factor, and lease term. L03- identify housing alternatives, assess the rental option, and perform a rent-or-buy. For many, renting offers convenience for their lifestyle and economic situation. The rental contract, or lease agreement, describes the terms under which you can rent the property, including the monthly rental amount, lease term, restrictions, etc. A rent-or-buy analysis will identify the least costly alternative.
