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

• principal

• down payment

• default

• collateral

A fixed amount of money paid out of pocket to reduce the amount borrowed.

• Credit history

• Loan terms

• Down payment

• Annual percentage rate (APR)

Interest can be defined as:

• a charge for lending money

• the fee charged for borrowing money

• the amount added into your savings account when opening a bank account

• a charge for convenience of accessing money in your bank

APR stands for

• annual profit rate

• annual percentage rate

• annual participation rate

• annuity profit range

The longer the loan term the less total interest you pay.

• False

• True

The down payment is the final payment you make when you are done paying off your loan.

• True

• False

A sum paid or charged for the use of money

• interest
• time
• sales tax
• principal

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

• lowest
• highest

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.

The cost of credit expressed as a yearly interest rate:

• APR
• Credit Limit
• Annual Fee
• Introductory Rate