Mean Jeans Unit 6 Test

What is the monthly interest for a mortgage whose principal is $2,500 at a 6% rate for 2 years?

What is the yearly interest for a principal of $5,000 at 10%?

A written response to repay the amount borrowed on a specific date, designated place, and at a stated rate of interest.

• Principal

• Promissory Note

• Installment Loan

• Contract

What are the 3 C's of Credit?

• Credibility

• Casher

• Character

• Capital

• Capacity

Your honesty and willingness to pay a debt

• Credibility

• Characater

• Capacity

• Capital

The value of your possessions

• Capital

• Net Worth

• Self-Value

• Liquidation

The formula for computing interest is:

• Mortgage Amount x 30 Years

• Principal x Rate x Time

• Principle x Time

The amount paid for the use of money is called:

• a service

• Installment

• $1,000

• Interest

A legal paper giving a lender a claim against real estate if the loan is not repaid

• Installment Loan

• Mortgage

• Promissory Note

Why should you consider purchasing credit life insurance?