Unit 7.3

If the interest rate is 5%, what is the interest on a $200 loan?

• $5

• $10

• $15

• $20

What is the definition of interest rate?

• The amount you save in a bank

• The cost you pay to the lender for borrowing

• The profit you earn from investments

• The fee for opening a bank account

If you borrow $100 and the interest rate is 5%, how much will you pay back?

• $100

• $105

• $110

• $95

What is the definition of credit?

• A gift given by a bank

• A contractual agreement where a borrower uses the lender's money and agrees to pay it back

• A type of savings account

• A method of earning interest

What is the main benefit of a line of credit?

• It earns interest over time

• It provides flexibility in spending

• It requires no repayment

• It is a form of income

What is an example of using a line of credit?

• Buying groceries with a credit card

• Receiving a paycheck

• Depositing money in a savings account

• Purchasing a car with cash

What is the purpose of a payment plan?

• To increase debt

• To pay off outstanding debts

• To avoid paying debts

• To calculate interest

Which of the following is an example of a payment plan?

• Paying $50 each month for 12 months

• Paying $600 all at once

• Paying $100 randomly

• Paying $10 every week

What type of code is a PIN?

• Numeric passcode

• Alphabetic passcode

• Alphanumeric passcode

• Symbolic passcode

What is the primary function of a PIN?

• Security

• Communication

• Entertainment

• Education