Annual Percentage Rate (APR)

Credit is

• the ability to borrow money or access goods or services with future payment.
• a form of insurance policy.
• a method of saving money.
• a type of investment strategy.

Debt is

• a type of investment that generates income.
• a financial strategy to increase wealth.
• a legal agreement to transfer property rights.
• an amount of money borrowed that must be repaid.

Cash is

• a method of saving money
• a medium of exchange in the form of coins and banknotes
• a type of investment
• a form of digital currency

Interest is

• a type of savings account
• a government tax
• a form of currency
• the cost of borrowing or the return on investment

Debit is

• an entry that decreases an asset or expense account
• a transaction that only affects cash accounts
• an entry that increases a liability or equity account
• Using money that is readily available in a current account - means money available to spend

APR stands for

• Annual Payment Rate
• Average Percentage Rate
• Annual Percentage Rate
• Adjusted Payment Rate

A credit score is

• A measure of a person's income level.
• A record of all bank transactions.
• A summary of a person's employment history.
• A numerical representation of a person's creditworthiness.

Budgeting is a way of ..

• calculating taxes for the year
• saving money for emergencies
• planning and managing financial resources
• investing in stocks

A credit score can be used to

• calculate tax returns for individuals.
• determine the interest rates for savings accounts.
• to build a good credit score

• evaluate investment opportunities in the stock market.

Michelle transfers £4000 onto a new card with an APR of 30%. How much will she pay back if the APR is applied straight away ?

• £5200

• £5320

• £4440

• £4000