Debt, Student Loans Fall 2025

The interest that is required by law to be stated in a loan document is the APR rate, which stands for ...

• Applied Personal Rate.

• Annual Percentage Rate.

• Annual Personal Rate.

• Anchor Percentage Rate.

A schedule that shows how each payment is applied to the loan's monthly interest and the loan principal is called a ...

• Loan amortization schedule.

• Payment calculation.

• Loan balance.

• Loan schedule.

How is a loan's annual percentage rate converted to a monthly interest rate.

• 12*APR

• APR*12

• 12/APR

• APR/12

The formula to calculate one month of interest on a loan balance is ...

• Loan balance * (1 + (APR/12)) ^ Number or loan periods.

• Loan balance / Interest rate

• Loan Balance * Annual Percentage Rate / 12

• Loan Balance Annual Percentage Rate * 12

A prediction of how likely you are to pay a loan back on time based on information from your credit reports.

• Credit Score

• Loan Score

• Debt to income ratio

• Standard loan

Your payment history, amounts owed, length of credit history, new credit accounts, and types of credit you use are used to calculate ...

• Payment score

• Debt to Income ratio

• A credit score

• Loan score

Is a lower or higher credit score better?

• Lower

• Higher

A extremely low risk borrower has a FICO credit score in the range of

• 300-579

• 580-669

• 670-739

• 740-799

• 800-850

Lenders ask questions on a loan application to determine ...

• How many jobs you have

• Your Lifestyle

• Your Income Tax Rate

• Debt Ratio

Your debt ratio is determined by ...

• Dividing your monthly debt payments by your monthly gross income

• Dividing your monthly gross income by your monthly debt payments

• Your annual income tax liability by your annual income

• Your weekly income by your annual income