Financial Algebra: Loans and Student Loans Review

You must begin paying back a student loan ...

• when you are ready to do so

• only when you find a job

• soon after you graduate

• none of the above

Those with a college degree, on average, earn thousands of more dollars/year when compared to those with just a HS dipolma

• True
• False

Tags

CCSS.RI.11-12.7

CCSS.RI.8.7

CCSS.RI.9-10.7

CCSS.RL.11-12.7

CCSS.RL.9-10.7

Private student loans have better interest rates than government student loans

• True
• False

Tags

CCSS.6.EE.B.8

Suppose that Phil had decided to take out a private loan for $9,000 where loan payments start as

soon as the loan amount is deposited in his student account and continue for 10 years. The

interest rate is 8.1%.

What is the total amount he will pay back?

• $14,237.00

• $13,235.78

• $13,156.39

• $13,160.40

Tags

CCSS.HSF.BF.A.2

Which of the following statements is TRUE about the advantages of federal student loans compared to private student loans?

• Federal student loans generally offer higher interest rates which remain fixed over the term of the loan
• Federal student loans do not need to be repaid if the borrower runs into financial difficulty and goes bankrupt
• Federal student loans require a credit check
• Federal student loans offer more flexible repayment terms

A(n) ______ _______ is a written promise to pay a certain sum of money on a certain date in the future

• maturity value 
•  promissory note
• repayment schedule 
• installment loan 

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

Gibson purchased computer equipment for $4,020. He used the store's credit plan. He made a 20% down payment. What amount did he finance?

• $3,216

• $804

• $4,000

• $4,824

Tags

CCSS.6.RP.A.3C

A(n) ______ _______ is a portion of the cash price of an item that has to be paid before financing the rest on credit

• down payment
• maturity value 
• promissory note 
• final payment 

Tags

CCSS.5.NBT.A.2

A subsidized loan is when ____________________ pays the interest while you are in school, while an unsubsidized loan is when ___________________ pays the interest while you are in school.

• the government; parents
• the borrower; parents
• the borrower; the government
• the government; the borrower

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

A(n) ______ _______ is a loan repaid in equal payments over a specified period of time

• single payment loan 
• installment loan
• maturity value 
• ordinary interest 

Tags

CCSS.8.EE.C.7B