Financial Financing Concept Check
ANSWERS TO CONCEPT CHECKS, FINANCIAL PLANNING PROBLEMS
AND QUESTIONS, AND CASES
Concept Check 7-1 (p. 186)
1. What are the main benefits and drawbacks of renting a place of residence?
Advantages of renting are mobility, fewer responsibilities, and lower initial costs. Disadvantages are few financial benefits, restricted lifestyle, and legal concerns.
2. Which components of a lease are likely to be most negotiable?
Some people will tell you that just about everything in a lease is negotiable; however, certain things are likely to be more flexible than others. Most negotiable items include rent, amount of security deposit, starting date of lease, and decorating
3. For the following situations, would you recommend that the person …show more content…
2. What factors affect the selling price of a home?
Home prices are affected by location, size, condition, features, and current market demand.
3. What should you consider when deciding whether to sell your home on your own or use the services of a real estate agent?
If you decide to sell by owner, you will need to price, advertise, and show the house. Some people would like to save money by taking on these tasks and not use a real estate agent. If you would like someone else to handle these and other duties, you may decide to use the services of a real estate agent.
FINANCIAL PLANNING PROBLEMS AND QUESTIONS (p. 202)
1. What do you believe are the most important factors a person should consider when selecting housing?
Student answers will vary. Encourage students to consider both their financial situation and personal factors.
2. Based on the following data, would you recommend buying or renting?
Rental Costs
Buying Costs
Annual rent, $7,380
Annual mortgage payments, $9,800 ($9,575 is interest)
Insurance, $145
Property taxes, $1,780
Security deposit,
AND QUESTIONS, AND CASES
Concept Check 7-1 (p. 186)
1. What are the main benefits and drawbacks of renting a place of residence?
Advantages of renting are mobility, fewer responsibilities, and lower initial costs. Disadvantages are few financial benefits, restricted lifestyle, and legal concerns.
2. Which components of a lease are likely to be most negotiable?
Some people will tell you that just about everything in a lease is negotiable; however, certain things are likely to be more flexible than others. Most negotiable items include rent, amount of security deposit, starting date of lease, and decorating
3. For the following situations, would you recommend that the person …show more content…
2. What factors affect the selling price of a home?
Home prices are affected by location, size, condition, features, and current market demand.
3. What should you consider when deciding whether to sell your home on your own or use the services of a real estate agent?
If you decide to sell by owner, you will need to price, advertise, and show the house. Some people would like to save money by taking on these tasks and not use a real estate agent. If you would like someone else to handle these and other duties, you may decide to use the services of a real estate agent.
FINANCIAL PLANNING PROBLEMS AND QUESTIONS (p. 202)
1. What do you believe are the most important factors a person should consider when selecting housing?
Student answers will vary. Encourage students to consider both their financial situation and personal factors.
2. Based on the following data, would you recommend buying or renting?
Rental Costs
Buying Costs
Annual rent, $7,380
Annual mortgage payments, $9,800 ($9,575 is interest)
Insurance, $145
Property taxes, $1,780
Security deposit,