Financial Algebra Unit 7 - Types of Credit & Modeling Functions

What does the "$" symbol specify in financial algebra?

• It indicates a variable interest rate.

• It specifies an absolute reference.

• It denotes a credit limit.

• It marks a down payment.

What is the process of paying off debt over time in equal installments called?

• Credit Limit

• Down Payment

• Amortization

• Debt

What does APR stand for in financial terms?

• Annual Payment Rate

• Annual Percentage Rate

• Annual Principal Rate

• Annual Profit Rate

What is the maximum amount that may be borrowed on a credit card known as?

• Credit Limit

• Down Payment

• Debt

• Amortization

Which type of loan requires the student to pay interest while in school or have it rolled into the principal amount?

• Direct Subsidized Student Loan

• Direct Unsubsidized Student Loan

• Credit Card Loan

• Mortgage Loan

What is a Federal Student Loan?

• A loan with an interest rate that does not change over the life of the loan

• A student loan repayment plan where your monthly payment increases over time

• Student loans from the government with a comparatively low interest rate set by Congress

• A loan used to finance a specific purchase for a specific amount of time

Which type of loan has an interest rate that remains constant over its life?

• Graduated Repayment Plan

• Fixed-Rate Loan

• Income-Based Repayment Plan

• Installment Loan

What is a Graduated Repayment Plan?

• A loan with an interest rate that does not change over the life of the loan

• A student loan repayment plan where your monthly payment is based on your income

• A student loan repayment plan where your monthly payment increases over time

• A loan used to finance a specific purchase for a specific amount of time

What defines an Income-Based Repayment Plan?

• A loan with an interest rate that does not change over the life of the loan

• A student loan repayment plan where your monthly payment is based on your income

• A student loan repayment plan where your monthly payment increases over time

• A loan used to finance a specific purchase for a specific amount of time

What is an Installment Loan?

• A loan with an interest rate that does not change over the life of the loan

• A student loan repayment plan where your monthly payment increases over time

• A loan used to finance a specific purchase for a specific amount of time

• A contract by which one party gives property to another for a specified time