Unit 10 Review

Secured & Unsecured Debt
Review

​Review for the Unit 10 Quiz

• Guided Notes

• Online Calculators

• Loan Calculator

https://www.amortization-calc.com/loan-calculator/

• Compound Interest Calculator

https://www.calculatorsoup.com/calculators/financial/compound-interest-calculator.php

Reminders:

Multiple Choice

You started a savings account by depositing $2,500. The savings account earns 0.55% APY. How much interest will you have earned by the end of 1 month?

Use the simple interest formula.

• $1375

• $114.58

• $1.14

• $13.75

Multiple Choice

You started a savings account by depositing $4,200. The savings account earns 2.1% APY.

What was the balance in the account after 2 months?

• $4,207.35

• $4,212.00

• $4,225.00

• $4,214.71

Multiple Choice

Which items are ALL secured debt?

• Home loans, auto loans, and secured credit cards

• Personal loans, student loans, and unsecured credit cards

• Mortgages, personal loans, and student loans

• Auto loans, personal loans, and unsecured credit cards

Multiple Choice

Suppose you borrow $15,000 at an interest rate of 7.50% compounded monthly. If the monthly payment is $185.49, what is the balance of the loan at the end of 2 months?

• $93.75

• $14,907.64

• $14,815.94

• $14,908.26

Multiple Choice

You borrow $25,000 at an interest rate of 5.2% compounded monthly and your monthly payment is $231.49.

What is the balance on the loan after two months?

• $24,537.02

• $24,753.68

• $24,876.84

• $24,753.15

Multiple Choice

Suppose you borrow $3,500 personal unsecured loan at 12% APR and are going to pay it back over 8 years. What is the total interest that you will pay on this loan?

https://www.amortization-calc.com/loan-calculator/

• $5,461.00

• $35.00

• $1,961.00

• $57.00

Multiple Choice

Suppose you borrow $19,250 from a bank to purchase a house. If the term of the loan is 13 years, how much should you expect to pay in interest over the life of the loan if your interest rate is 10.50%?

https://www.amortization-calc.com/loan-calculator/

• $35,360

• $16,110

• $15,220

• $19,250

Multiple Choice

How much would $14,250 be worth in a savings account after 12 years if the account has a 5.25% APY and the interest is compounded weekly?

https://www.calculatorsoup.com/calculators/financial/compound-interest-calculator.php

• $26.747.45

• $26,754.74

• $26,719.21

• $21,107.91

Multiple Choice

How much would $3,500 be worth in a savings account after 6 years if the interest rate is 7.25% APY compounded daily?

https://www.calculatorsoup.com/calculators/financial/compound-interest-calculator.php

• $21,004.17

• $5,407.14

• $3,500.70

• $92,618.75

Multiple Choice

What is the actual interest rate that would be needed for an investment of $7,000 to double (have a value of $14,000) by the end of 25 years?

• 2.5%

• 2.9%

• 2%

• 2.8%

Multiple Choice

What is the actual interest rate needed for an investment of $10,000 to double (have a value of $20,000) by the end of 15 years?

• 4.63%

• 4.263%

• 4.7%

• 4.621%

Multiple Choice

Using the Rule of 70, approximately how many years will an investment of $3,000 need to double given a 1.5% interest rate?

• 47 years

• 46 years

• 43 years

• 45 years

• ​Unit 10 Quiz tomorrow

• Unit 11 starts on Monday
  

Coming up