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WorksheetsCredit & Loan Vocabulary
Total questions: 11
Worksheet time: 6mins
The principal of a loan is
the percentage of the loan that must be paid to the lender in addition to the loan amount.
the total amount paid when the loan is paid off.
the amount of money loaned before any fees or interest.
Mr. Pirner?
An interest rate is
a fixed amount that you pay each month until the term of the loan is over.
the dollar amount of money you pay to the lender in addition to the principal.
the percentage of the original loan that you are paying in addition principal.
the quantifiable amount of how much you care about something.
A loan term is
the amount of time over which the borrower is expected to pay back the loan.
a contract that is signed when agreeing to a loan.
how it is decided if collateral is needed for a particular loan or not.
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Secured Vs. Unsecured loans has to do with
if the money is kept in a safe location like a bank.
if there is a background check completed on the borrower.
if the borrower provides collateral to the lender in case of being unable to pay back the loan.
how confident the loan is in its self-worth. Also known as insecure loans.
If a person borrows $5,000 on a five-year loan with a 4.5% interest rate, they face a monthly payment of $93.22 for the following five years.
What is the principal amount of this loan?
$5,000
4.5%
$93.22
5 years
If a person owes $10,000 on a credit card at 6% and they pay $200 each month, it will take them 58 months, or nearly five years, to pay off the balance.
What is the interest rate on this loan?
$10,000
6%
$200
58 months
A person owes $10,000 on a loan with a 20% interest rate, and $200 monthly payments over 108 months, or nine years.
What is the term for this loan?
$10,000
20%
$200
9 years
Joe buys a $35,000 truck. He put a $3,000 down payment on it taking out the loan. The loan monthly payments are $467.47 over 7 years.
What is the principal on this loan?
$35,000
$3,000
$32,000
7 years
Joe buys a $35,000 truck. He put a $3,000 down payment on it taking out the loan. The loan monthly payments are $467.47 over 7 years.
What is the term for this loan?
$35,000
$3,000
$32,000
7 years
Chad buys a house for $200,000 with a $25,000 down payment. His bank gives him a 15-year mortgage at 4.4% interest.
What is the principal amount of his loan?
$200,000
$25,000
$175,000
$225,000
Chad buys a house for $200,000 with a $25,000 down payment. His bank gives him a 15-year mortgage at 4.4% interest.
What is the term of his loan?
4.4%
15 years
$8,800
$208,800
