Types of Credit & Modeling Functions Unit Assessment

Each of the following is an installment loan, except for a(n) (a)   , which is a revolving line of credit.

• Personal Loan

• Credit Card
• Mortgage

• Auto Loan

Tags

CCSS.8.F.A.3

Keon plans to buy a new GMC Sierra for $47,000 at 5.5% APR. Which financing option would have the lowest total interest?

• 60-month term and $2,000 down payment

• 60-month term and $3,500 down payment

• 36-month term and $3,500 down payment

• 36-month term and $5,000 down payment

In order to take out federal student loans, you need to...

• Have a credit score above 600

• Complete and submit the FAFSA

• Choose a repayment plan before enrolling

• Take out at least $6000 in private student loans

Which of the following is an example of a secured debt?

• A credit card

• A student loan

• An auto loan

• A personal loan from family

Which of the following best describes a Schumer box?

• The portion of your monthly credit card bill that lists the minimum monthly payment due

• The portion of your credit card agreement that lays out the important rates and fees

• The portion of your credit card application that asks for your income and employment status

• The portion of a plastic credit card that holds the magnetic stripe or chip

For most American households, the largest source of debt is:

• Student loans

• Credit cards

• Medical debt

• Mortgages

If you fall behind on your loan payments, all of the following are recommended steps, EXCEPT...

• Calling your lender to negotiate a payment plan that fits your needs

• Reducing your spending to divert additional income towards loan payments

• Putting your past due loan payments on a credit card

• Find additional sources of income to help catch up on past due payments

Mason borrows $2700 in Direct Subsidized student loans for their first semester. Which statement is accurate?

• The loans will begin accruing interest immediately after disbursement

• The loans will accrue interest starting after they leave school

• The loans will require repayment one year after disbursement

• The loans will require repayment once they secure employment

What is one way to guarantee you don’t pay interest on your credit card?

• Pay your entire balance in full every month

• Pay your minimum monthly payment on time

• Spend less than your credit limit

• Only make new purchases every other month

After exploring various options, Jamie found a house she’d love to purchase. When discussing the mortgage, the loan officer says, “I can offer you 4% on $300,000 for 30 years.” What do each of those numbers signify?

• 4% is the term, $300,000 is the down payment, 30 years is the interest rate

• 4% is the interest rate, $300,000 is the principal, 30 years is the term

• 4% is the principal, $300,000 is the interest rate, 30 years is the term

• 4% is the interest rate, $300,000 is the term, 30 years is the principal

Tags

CCSS.HSA-SSE.A.1A