Financial Math 2nd Six Weeks Test Review

Which of the following is the issue of money, goods, or services to an individual or entity with the expectation of future payments?

• Gift
• Investment
• Grant
• Credit

A valuable asset the borrower offers to lenders for securement of the loan provided is called..

• interest
• collateral

• amortization
• debt

Interest rate which stays the same throughout the loan is called...

• variable interest rate
• adjustable rate mortgage
• floating interest rate
• fixed interest rate

Which of the following is a short-term, high-interest loan designed to bridge the gap from one paycheck to the next?

• Home equity loan
• Payday loan
• Credit card advance
• Personal loan

Which of the following types of interest fluctuates over time as the market interest rates change?

• Variable interest
• Compound interest
• Simple interest
• Fixed interest

The right to keep possession of property of another until a debt owed by the person is discharged is called a ......

• Lein

• Credit line

• Debt

• Depreciation

Brad bought a new truck and paid $64,200. A vehicle depreciates 20% after the first year. How much it is worth at the end of the first year?

• $$12,840

• $57,000
• $51,360
• $60,000

All of the following are benefits of leasing a car instead of buying EXCEPT...

• having the latest technology and safety features.

• a lower monthly payment.

• being able to drive unlimited miles without fees.

• you can get a new car every few years.

What should you do if the MSRP is above your budget?

• Ignore the MSRP and buy anyway.
• Test drive the car to see if it feels like a worthwhile purchase

• Negotiate the price or consider another model

• Sell your valuable possessions to make extra money for the new car

Which of the following is a website supplying vehicle title records and damage reports?

• Consumer Reports

• Carfax

• Kelley Blue Book

• Carmax