Loans

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

• False

• True

What is the term of a loan?

• No more than 5 years

• The time period in which you agree to pay back the loan

• How long you have on your loan before you start getting charged interest

Secured loans tend to have a higher interest rate because they are more risky to the lender.

• True

• False

If you default on a loan, your co-signer takes on the debt as if it were their own.

• True

• False

If you pay back a loan over a longer term, you end up paying​ (a)   in interest

• more
• less
• the same

If you pay back a loan over a longer term, you end up having​ (a)   payments

• smaller
• bigger
• the same size

If I want to pay less in interest, I can....

• Get a longer term

• Get a shorter term

• This is not possible

If I want to pay less in interest, I can....

• make bigger monthly payments

• hire a lawyer

• Make smaller payments

If you borrow $5000 at 22% interest, and want to make monthly payments of $100, how long will it take you to pay it back?

• between 136 and 137 months

• between 50 and 51 months

• between 98 and 99 months

• between 14 and 15 months

If you borrow $1800 at 19% interest and want to pay it back in 2 years, what will your monthly payment need to be?

• around $91

• around $75

• around $50

• Around $107