#3 Semester Review | Financial Math

Front

What is the benefit of paying more than the minimum due on your credit card?

Back

Paying more than the minimum reduces the total interest paid and helps pay off the balance faster.

Front

What is the main difference between debit and credit cards?

Back

Debit cards draw money directly from your bank account, while credit cards allow you to borrow money up to a certain limit.

Front

What happens if you only make the minimum payment on a credit card?

Back

It takes longer to pay off the balance and results in paying more interest over time.

Front

What is a credit card?

Back

A credit card is a financial tool that allows you to borrow money to make purchases, with the obligation to pay it back later.

Front

What is a debit card?

Back

A debit card is a payment card that deducts money directly from your checking account to pay for a purchase.

Front

Why is it important to understand interest rates on credit cards?

Back

Interest rates determine how much extra money you will pay if you carry a balance on your credit card.

Front

What is the purpose of a budget?

Back

A budget helps you plan and track your income and expenses to manage your finances effectively.

Front

What is compound interest?

Back

Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods.

Front

What is the difference between fixed and variable interest rates?

Back

Fixed interest rates remain the same throughout the loan term, while variable rates can change based on market conditions.

Front

What is a credit score?

Back

A credit score is a numerical representation of your creditworthiness, based on your credit history.