QR Module 7 Exit Test (part 2)

The fee charged for the use of money.

• Auto loan

• Loan terms

• Down payment

• Annual percentage rate (APR)

The maximum amount of time over which an individual agrees to repay an auto loan. Typically ranges from 36 to 84 months.

• Loan

• Loan terms

• Down payment

• Annual percentage rate (APR)

Suppose you want to buy a new car. You have saved some money for a down payment, but you will need to finance $12,500. (Hint: to find the monthly payment, add the finance charges and divide by the number of payments.)

First State Bank charges 4.9% APR for 48 months. Their total finance charges are $2,007.34. What is the total cost of the car loan? What is the monthly payment?

• The total is $14,507.34 and the monthly payment will be $302.24.

• The total is $2,106.99 and the monthly payment will be $58.53

• The total is $13,669.49 and the monthly payment will be $379.71

• The total is $15,561.10 and the monthly payment will be $216.13

Which of the following is not a reason to obtain a common term loan?

• Store credit

• Auto

• Mortgage

• education

APR is a _____ while finance charge is a _____

• Dollar, Dollar

• percent, dollar amount

• dollar amount, percent

• percent, percent

A ____________________ is a loan and bill payment history, used to determine the likelihood that a future debt will be repaid.

• credit reporting agency

• creditor

• Credit report

• credit card

Which of the following is not a way to build good credit?

•  

  Developing a budget and sticking to it.

•  

  Saving money so you have an emergency fund.

•  

  Paying your bills on time

•  

  Applying for several cards and paying the minimum balance on each.

A ____________________ is an organization that compiles credit information on individuals and businesses and makes it available for a fee.

• creditor

• credit score

• credit reporting agency

• credit report

Which of the following is an example of capacity?

• occupation

•  

  Your level of desire to purchase fine things

•  

  Your current address
  

•  

  Your savings account balance

Which of the following is an example of character?

• desire to buy expensive things

• Savings acct balance

• your current address

• Occupation