Consumer Spring Final Exam Review (2024)

Auto Loan Principal

• Using cash or prepaid card, or paying with debit card
• Leaving a good impression and expanding on interview topics
• Paying off highest interest debt first
• The cost of the car minus any down payment

Auto Loan Interest Rate

• The total cost paid after making all principal and interest payments
• Education, experience, and work skills
• Charged on unpaid balance and new purchases based on APR
• Interest charged on unpaid balance and new purchases

NET PAY

• Looking for sign-up bonuses and introductory offers
• Amount paid by the insured before the insurance company covers the rest
• Higher fees, lack of credit building, limited consumer protections
• Total amount earned minus taxes and deductions

GROSS PAY

• Checking bank statements, shredding documents, using secure websites
• Interest charged on unpaid balance and new purchases
• By end of Jan -- receive his W2 from his employerBy Apr 15 (or tax filing deadline for the current tax filing year) -- file his taxes, using form 1040. If he owes taxes (see answer below), he must pay them by this date as well.After Apr -- Assuming he's a student/dependent and did not earn very much money, he will most likely get a refund.Optional -- can readjust his W-4 form at any time to change the amount ofterm-29 tax withheld from his upcoming paychecks
• Total amount earned before any deductions

Thank You Note Importance

• Interest charged on unpaid balance and new purchases
• Medicare, federal taxes, social security
• Leaving a good impression and expanding on interview topics
• The cost of the car minus any down payment

Secured Credit Card

• Charged on unpaid balance and new purchases based on APR
• Convenient check deposit, waived fees, access to account
• Monthly payment for renters insurance
• Credit card with a credit limit dependent on a security deposit

Payment Method - Checking Account

• Insurance premiums are set based on risk factors, with riskier individuals paying more than "safer" individuals. Each person in the "pool" pays their monthly premiums, regardless of whether they file any claims that month. Those who DO have auto insurance claims that month receive payments from the insurance company toward their claims; those who don't have any claims receive nothing. But, the concept works because EVENTUALLY you may need to draw on the benefits, and insurance should cover you according to the policy agreement.
• Total amount earned minus taxes and deductions
• The cost of the car minus any down payment
• Using cash or prepaid card, or paying with debit card

Renters Insurance Premium

• Monthly payment for renters insurance
• Comparing factors of the same product from different retailers
• The total cost paid after making all principal and interest payments
• Checking bank statements, shredding documents, using secure websites

Renters Insurance Deductible

• Checking credit history to ensure timely monthly payments
• Amount paid by the insured before the insurance company covers the rest
• Using cash or prepaid card, or paying with debit card
• Higher fees, lack of credit building, limited consumer protections

Savings Account Compound Interest

• Amount of money after earning 1% annual compound interest for 10 years
• Looking for sign-up bonuses and introductory offers
• The total cost paid after making all principal and interest payments
• Convenient check deposit, waived fees, access to account