Car Loans

Something a bank or financial institution makes and charges you interest?

• time
• Loan
• rate
• sales tax

This is added to the selling price and pays the Government?

• time
• rate
• sales tax
• interest

A sum paid or charged for the use of money

• interest
• time
• sales tax
• principal

You must have insurance on your vehicle?

• true
• false

You will need a drivers license and a vehicle registration to operate your car?

• true
• false

When getting a car loan you will want to get the highest or the lowest interest rate?

• lowest
• highest

Purchasing a car on a loan through the bank or dealership is called:

• franchising
• financing
• amortizing
• loaning

Brenda's bank offers car financing for 3, 4, or 5 years.  If Brenda chooses 5-year financing, how many monthly payments will she have?

• 60
• 48
• 36
• 12

What would the monthly payment be on a purchase of a $10,000 car at 5.9% for 4 years?

• $239.34
• $234.39
• $212.50
• $250.00

What would happen to a monthly payment if the interest rate increased?

• The payment would go up.
• The payment would go down.
• The payment would remain the same.
• None of the above.