Chapter 4 FA

A debit card is a type of charge card where the monthly bill must be paid in full with interest.

• true

• false

Last month the ending balance on Maryanne's MasterCard was $1,789. The average daily balance was $755, and the monthly periodic rate is 1.85%. Her finance charge can be calculated by multiplying the average daily balance times the monthly periodic rate. So the finance charge is what?

• $1.38

• $55.32

• $13.97

• $32.55

Tags

CCSS.7.RP.A.3

Taneeka borrowed $15,000 for a car for 8 years at an APR of 5.25%. Her monthly payment will be what?

• $191.96

• $1025.21

• $1875

• $156.25

Interest can be either the money paid by a bank to a consumer or money paid by a consumer to the bank.

• true

• false

Tags

CCSS.7.RP.A.3

The Truth-In-Lending Act says that the consumer can never have a problem with their creditor.

• true

• false

Tags

CCSS.RL.11-12.6

A FICO score summarizes the probability that a person with debt will repay that debt

• true

• false

FICO scores range from 300 to 850. Above 700 is considered good and below 600 is considered a risk

• true

• false

Tags

CCSS.6.NS.C.5

The total interest on a four year 6.2% LOAN with a principal of $9,000 is what?

• $2232

• $223,200

• $558

• $36,000

Tags

CCSS.7.RP.A.3

Regina pays her credit card balance in full each month. Last month her average daily balance was $575 and the APR is 14.2%. What is her finance charge?

• $6.80

• $68.00

• $0.00

• $81.65

Tags

CCSS.7.RP.A.3

Jerry buys a $3,700 motorcycle on a deferred payment plan. There is no down payment and no interest for 24 months. Jerry must make a minimum payment of $100 a month. To avoid a retroactive APR of 19% he must pay the balance in full before the 24 months have passed. If he pays $100 each month for the first 23 months, how much does he have to pay the last month to avoid any interest charges?

• $1300

• $1500

• $1400

• $3700

Tags

CCSS.HSF.BF.A.2