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WorksheetsA Bank Loan
Total questions: 15
Worksheet time: 8mins
It is okay to go into debt for things you don't really need.
True
False
You should get your loan from the place that charges the highest interest.
True
False
Always quickly sign papers that are offered to you.
True
False
If you make a big down payment, you'll pay interest on a larger amount of money.
True
False
A longer term loan is ideal because it will have lower monthly payments.
True
False
If you are not careful you may take out a loan on an item that will break before the loan is complete.
True
False
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?
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 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 term of his loan?
4.4%
15 years
$8,800
$208,800
The original amount of money that is borrowed. The amount decreases when you make a payment.
Annual percentage rate (APR)
Loan amount or principal
Down payment
Loan terms
The longer the loan term the less total interest you pay.
False
True
Interest can be defined as:
a charge for lending money
the amount owed for borrowing money
the amount added into your savings account when opening a bank account
a charge for convenience of accessing money in your bank
