QUIZ: Ch. 3.3 - 3.5 (Math for Finance)

Match the following

• Accrues

• The amount of tuition that's anticipated to covered based on financial info. submitted to a loan agency.

• Student Aid Report

• This is sent to the family after the FAFSA is processed, includes info. about which student loans are available.

• Expected Family Contribution

• Describes the situation when no payment is required on a loan.

• Defer

• A form where the loan applicant must supply personal & financial data that will assist in the loan decision making process.

• FAFSA

• Describes the situation when interest builds up or adds to the principal amount.

Match the following

• Federal Loan

• A need-based student loan, which borrowers can defer interest payments for a period of time.

• Private Loan

• A type of loan issued by a bank, a credit union, or state agency.

• Federal Perkins Loan

• A student loan that is not need-based, which students are expected to pay interest that accrues from the time the money is received.

• Federal Direct Subsidized Loan

• A type of loan that the federal government funds and makes available for students.

• Federal Direct Unsubsidized Loan

• A type of loan that's available for students with exceptional financial need.

Definition: Interest Capitalization is...

• The process of adding unpaid interest to the principal balance of a loan or investment.

• The process of transferring interest from one loan or investment to another.

• The process of calculating interest on a loan or investment.

• The process of deducting unpaid interest from the principal balance of a loan or investment.

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CCSS.7.RP.A.3

[Ch. 3.3 Notes, Question #1] According to your notes, what percent of students borrow money to cover the costs of higher-education?

• 15% - 25%

• 30% - 40%

• 45% - 55%

• 60% - 70%

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CCSS.7.RP.A.2C

[Ch. 3.3 Notes, Question #3] According to your notes, what is the average student loan debt, in dollars, for the year 2024?

• $17,600

• $28,350

• $37,850

• $49,400

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CCSS.HSN.VM.C.6

[Ch. 3.3 Notes, Question #9] According to your notes, when we looked up the prices to attend FSCJ and UNF, what was the cost per credit hour (In-State) to attend FSCJ?

• $99 / credit hour

• $111 / credit hour

• $159 / credit hour

• $177 / credit hour

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CCSS.6.RP.A.3B

Suppose James was approved for a 10-year unsubsidized loan at 4.65% in the amount of $6,800 to attend college. What simple interest amount will he rack up while he's attending college if he decides to defer his payments for 4.5 years, and having fun at football games... and parties... and making his parents proud by choosing the GREATEST College in all of America?

(*Hint: Do you remember the formula for Simple Interest...?)

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CCSS.7.RP.A.3

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CCSS.7.RP.A.3

If you take out a loan to attend college, what "cushion of time" (in months) do you have after you graduate and earn your bachelor's degree, before you have to start making monthly payments on your loan?

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CCSS.7.RP.A.3

Match the following

• Debit Card

• A card that allows the customer to borrow money repeatedly up to a certain limit.

• Charge Card

• A card that deducts money directly from a checking account.

• Credit Card

• A card that entitles its holder to make purchases and pay for them later.

• Average Daily Balance

• The average amount of money owed on a credit card account over a certain period of time.

• Revolving Charge Account

• A card that requires the balance to be paid in full each month.