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Worksheets

Borrowing Money

Total questions: 27

Worksheet time: 23mins

Name
Class
Date
1.

One good way to lower the cost of a loan is to _________.

a)

pay high interest

b)

take several years to pay

c)

make a large down payment

d)

pay the minimum balance every month

2.

Another way to save on a loan is to _________.

a)

accept a car dealer's financing

b)

shop for the best loan bargain

c)

apply jointly with someone

d)

pay the highest interest possible

3.

To get approved for a loan, you must ________.

a)

plan to pay it off early

b)

first pay all the interest

c)

fill out an application

d)

finance a car

4.

A person jointly applying for a loan with you must _________.

a)

pay an extra finance charge

b)

pay off the loan if you don't

c)

not be asked any questions

d)

share the loan money with you

5.

Many dealers offer to ________ large purchases.

a)

finance

b)

fineance

c)

financ

d)

fenance

6.

The loan ________ is the amount borrowed, not including interest.

a)

principal

b)

principle

c)

prinsible

d)

princepel

7.

If you make a large d____ p______, you won't have to borrow so much.

(a)  

8.

Your total ________ includes everything you earn, including wages and interest.

a)

income

b)

encome

c)

in comes

d)

incom

9.

The less money you borrow, the _________ you'll pay in finance charges.

a)

more

b)

less

c)

greater

d)

interest

10.

A high-interest loan will be _______ costly than a low-interest loan.

a)

more

b)

less

c)

interest

d)

principal

11.

_______ usually offer the best loan rates.

a)

Banks

b)

Dealers

c)

Stores

d)

Goats

12.

Watch out for lenders who fine you for paying off a loan _______.

a)

on time

b)

early

c)

late

d)

entirely

13.

What is an APR?

a)

The actual percentage rate.

b)

The annual percentage rate.

c)

The all purpose rate.

d)

The average percentage rate.

14.

An APR of 5.4% in decimal form is....

a)

.54

b)

.054

c)

5.4

d)

.0054

15.

An APR of 25.99% in decimal form is....

a)

.02599

b)

.2599

c)

2.599

d)

25.99

16.

To calculate the total cost of a loan, you must consider both the principal and the ________.

a)

application fee

b)

credit score

c)

down payment

d)

interest

17.

Which of the following is a benefit of a low-interest loan?

a)

Longer loan term

b)

Lower total repayment amount

c)

Increased finance charges

d)

Higher monthly payments

18.

Convert 23 % into decimals

a)

2.3

b)

0.23

c)

0.023

d)

23.0

19.

Convert 18 % into decimals

a)

1.8

b)

0.18

c)

0.018

d)

18.0

20.

Convert 45 % into decimals

a)

4.5

b)

0.45

c)

0.045

d)

45.0

21.

Convert 58 % into decimals

a)

5.8

b)

0.58

c)

0.058

d)

58.0

22.

Convert 9 % into decimals

a)

9

b)

0.9

c)

0.09

d)

90.0

23.

Convert 0.27 into percentage

a)

2 %

b)

2.7 %

c)

27 %

d)

270 %

24.

Convert 0.39 into percentage

a)

3 %

b)

3.9 %

c)

39 %

d)

390 %

25.

Convert 0.58 into percentage

a)

5 %

b)

5.8 %

c)

58 %

d)

580 %

26.

Convert 0.90 into percentage

a)

9 %

b)

9.0 %

c)

90 %

d)

900 %

27.

Convert 0.05 into percentage

a)

5 %

b)

0.5 %

c)

50 %

d)

500 %