CONSUMER MATHEMATICS: CREDIT AND DEBT (F3)

An open line of credit that can be used for any purchases as long as you're under the credit limit. Credit cards are an example.

• Installment Loans

• Revolving Credit

• Secured Debt

• Unsecured Debt

You are purchasing a camper that has a cash price of $26,995 and make a 12% down payment, calculate the principal of the loan.

• $23,755.60

• $2,375.56

• $3,239.40

• 23,755.6

Money paid regularly for the use of money borrowed

• Amortization Schedule

• Principal

• Term

• Interest

Balance = $2500

Interest Rate = 18.7%

Minimum payment = $45

If paying only the minimum, how much total interest will be paid?

• $2500

• $3343.52

• $2907.65

• $3892.10

While paying off your installment loan over 5 years you made payments of $381.62. Calculate the total of installment payments.

• $18,317.76

• $22,897.20

• $23,660.44

• $27,476.64

The original amount in a bank account OR borrowed for a loan

• Interest

• Principal

• Term

• Credit Score

This amount is good to compare when looking at installment loans, it tells you the total amount in the end that you are paying for what you purchased.

• Installment Price

• Maturity Value

• Total Of Installment Payments

• Interest Refund

Credit card 1:

Balance - $542, APR - 19.3%, Minimum payment - $45

Credit card 2:

Balance - $743, APR - 20.1%, Minimum payment - $40

Credit card 3:

Balance - $2048, APR - 17.3%, Minimum payment - $55

To pay the LEAST amount of interest, which card should be paid off the fastest?

• Credit Card 2

• Credit Card 3

• Credit Card 1

Which of the following is the weaknesses of the uses of credit card

• Provides interest free repayment service

• Easy to use for cashless payment

• Could be imposed interest and charges

• Easy to overspend

An initial payment made when something is bought on credit

• Debt

• Down Payment

• Principal

• Interest