8.1 loans CFU

When you take out a loan, what is the principle?

• amount you are borrowing

• the APR

• the time of the loan

• the down payment

What is the APR in a loan?

• it is the time of the loan

• it is the principle of the loan

• it is the rate of the loan

• it is the down payment of the loan

What is the biggest factor that determines how much you have to pay back the bank in interest (banks profit)

• time of the loan

• the APR

• the principle

• the down payment

this is not the biggest factor which determines how much interest you have to pay the bank, however it does affect how much interest you will have to pay.

• time of the loan

• the APR

• the down payment

• the principle

Which loan would you pay the MOST interest, banks want these loans

• a short term loan that is 1 - 3 years

• a long term loan that is 4 - 7 years

Which loan would you pay the LEAST interest, banks don't want these loans

• a short term loan that is 1 - 3 years

• a long term loan that is 4 - 7 years

exact interest means you divide by what number?

• 365

• 360

• 306

• 356

ordinary interest means you divide by what number?

• 365

• 360

• 306

• 356

this type of loan means it is a very short-term loan, where you pay back the total with one payment.

• installment loan

• house loan

• car loan

• motorcycle loan

• single payment loan

this is the total you have to pay back to the bank after taking out a single-payment loan, when the time is up.

• maturity value

• principle

• interest

• down payment