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8. Jack was packing up his belongings and preparing to move out of his rented apartment. He left a bunch of garbage piled up and the kitchen and bathroom were filthy. His dog had chewed holes in the carpet and one of his friends had tagged the walls. Will Jack be able to recover his security deposit from his landlord when he moves out? Explain your answer. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 9. Which of the following is an advantage of buying a home rather than renting one? a. homeowners receive a mortgage deduction which reduces their federal income tax liability b. over time, owning a home is often less expensive than renting c. homeowners can build wealth through amortization and appreciation d. all of the above 10. Elliott is a recent college grad who just started a new job. His gross salary is $36,000 per year. After deductions for employee benefits and taxes, his net pay each month is $2100. He’s considering renting an apartment with a monthly rent of $600 plus utilities. The utilities run about $100 per month. How much can he afford to spend on housing? Can he afford this apartment? Explain your answer. _ ____________________________________________________________________ _ ____________________________________________________________________ 11. Which of the following is NOT a cost of homeownership? a. security deposit c. upkeep, repair and renovation b. mortgage payments and property taxes d. possible depreciation 12. T F Housing is the biggest single expense for American families. 13. Sheila is ready to buy a house and she has signed a contract of sale with the house’s current owner. What is the next step in the process of buying the house? _ ____________________________________________________________________ _ ____________________________________________________________________ 14. The majority of housing in dense urban areas in major cities is ______. a. single family homes c. mobile homes b. townhouses d. multi-family housing PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 173
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