In Many Cases, Property Taxes When You Own a Home

question 1

Multiple Choice

In many cases, property taxes when you own a home are paid every six months, homeowner's
Insurance is paid once per year, and car insurance is paid every six months. One homeowner pays
$1,450 in property taxes twice a year, $946 in homeowner's insurance annually, and makes car
Insurance payments of $294.32 and $335.40 every six months. If this homeowner wants to spread
These expenses out by putting some money each month into a savings account, how much should she
Put aside per month?

• A)$304.62
• B)$504.29
• C)$425.45
• D)$372.98

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Definitions:

Substitutes

Goods or services that can be used in place of each other; when the price of one goes up, the demand for the other can increase.

Elastic Demands

A market situation where the quantity demanded of a good or service significantly changes in response to a change in price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified time period.

Substitutes

Products or services that can serve as replacements for each other, satisfying the same customer need or want.