Do Now 50

Someone might choose to own a car instead of leasing a car because:

• it will be less expensive

• it will be more expensive

• it could lead to lower repair expenses

• it could be sold later on to make some money back on the vehicle

Car leases usually have:

• unlimited terms

• minimum mileage agreements

• maximum mileage agreements

• none of these

My friend offered the bank his house as .... when he needed a loan.

• collateral

• debt

• term

• tenure

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

The bank will take possession of your car if you .... your car loan.

• pay off

• default on

• endorse

• compute

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

The amount of money that the lender lends to the borrower is called ....

• principal

• tenure

• default

• collateral

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

APR is a standardized calculation that represents the yearly cost of your loan. What does APR stand for?

• Annual Precipitation Rate

• Approximate Percentage Rate

• Annual Percentage Rise

• Annual Percentage Rate

What is the term of a loan?

• No more than 5 years

• The time period in which you agree to pay back the loan

• How long you have on your loan before you start getting charged interest

What does the term default mean?

• Failing to repay a loan

• A term used when you miss one loan payment

• Paying more than the minimum payment required on a loan

The more you borrow and the longer the term, the higher the interest rate will be.

• True

• False

Lower credit scores qualify your for lower rates on your loan.

• True

• False