Loan Basics

The money originally invested or loaned, on which basis interest and returns are calculated is the

• Principal

• Balloon Payment

Cost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan. (The extra money you pay for taking out a loan

• Annual Percentage Rate

• Interest Payment

Person that agrees to repay the debt if the borrower doesn't pay is a

• Debtor

• Cosigner

Tangible asset that is used to secure a loan. (Something valuable to you that you can trade for a loan until the loan is paid back.)

• Values

• Collateral

Tags

CCSS.RI.7.2

CCSS.RI.8.2

CCSS.RL.7.2

CCSS.RL.8.1

CCSS.RL.9-10.2

Which item below is not considered a first-time credit option?

• Home Loan

• Department Store Card

• Secured Credit Card

• Bank Card

When applying for credit, which of the following should you do?

• Research the items and conditions thoroughly

• Make sure the creditor reports your activity to the credit bureaus

• Make sure you understand all of the fees before accepting the credit

• All of the above

Which of the following is the most practical tip for saving money on eating out?

• Don't eat a few meals over the course of the week to stay in shape and save money

• Bring your lunch to work throughout the week to save money

• Pay for meals on your credit card instead of debit or cash

• Order Chick-Fil-A to-go instead of dining in

Which of the following would save on transportation costs?

• Use public transportation when available

• Plan your trips to reduce gas costs

• Buy a good, reliable, fuel efficient car to save on gas costs

• Shop around for car loans to get the best deal

• All of the above

The annual rate that is charged for borrowing from a lender

• Annual Percentage Rate (APR)

• Annuity Annuled Fund

• Increment Balance Dividends

• Taxes

The sense of regret after buying something

• Immediate Regret

• Don't count your chickens before the eggs hatch

• Buyer's Remorse

• Bad Vibes