Consumer Math B Unit 1 Review

Classify each item as Secured or Unsecured Debt

Groups:

(a) Secured Debt

,

(b) Unsecured Debt

• student loans
• utility bills
• boat loan
• personal loan
• personal loan secured by collateral
• secured credit card
• home equity loan
• tax debt
• payday loan
• car loan

• mortgage
• credit card

All loans fall into the categories of ​ (a)   or unsecured ​ (b)   . Some examples of unsecured loans are: student loans, ​ (c)   loans, and home improvement loans. Secured loans usually are for ​ long periods of time at ​ (d)   interest rates and for amounts of money. Some examples include: mortgages, ​ (e)   loans, and business loans.

• secured
• debt
• personal
• lower
• auto

When you agree to pay a car dealer for the use of a new car during a set period of time for a set amount of money and you have to return it at the end of that period of time, you are _____.

• buying

• owning

• leasing

• renting

Tags

CCSS.RI.11-12.5

CCSS.RI.6.5

CCSS.RI.7.5

CCSS.RI.8.5

CCSS.RI.9-10.5

You typically have to pay Private Mortgage Insurance (PMI) if you put a downpayment on a house less than __% of its value.

• 5%

• 10%

• 20%

• 25%

Tags

CCSS.6.RP.A.3C

Which statement is true when it comes to interest rates on loans for new and used cars.

• Used cars typically have a higher interest rate than new cars.

• New cars typically have a higher interest rate than used cars.

• There is no significant difference in loan interest rates.

• New cars typically have a lower interest rate until they depreciate.

Tags

CCSS.7.RP.A.3

Lenders determine risk based primarily on _____.

• credit card debt

• income level

• housing status

• credit scores

Interest begins accruing the date of which of these transactions?

(Select all that apply).

• auto loans

• mortgages

• credit card purchases

• credit card cash advances

Tags

CCSS.7.RP.A.3

You are buying a used car for $12,800.00 plus 6.25% sales tax. You make a $1,600.00 down payment on the total price. You have a good credit score. How much interest is due at the end of the first month?

Mathematical Equivalence

OFF

Tags

CCSS.7.RP.A.3

You are buying a used car for $12,800 and pay 6.25% sales tax. Your credit score is excellent. Your downpayment is $3600. How much interest would accrue in the first month?

Mathematical Equivalence

ON

Tags

CCSS.7.RP.A.3

You have a credit card that has a balance of $4,320 and a credit limit of $6,800. How much is the balance over the acceptable debt:credit ratio percentage? (Use 50% as the acceptable debt ratio).

Mathematical Equivalence

ON

Tags

CCSS.6.RP.A.3C