WorksheetsPF 2.1 Quiz
Total questions: 15
Worksheet time: 8mins
Principal: 10,000
Interest: 5%
Time: 5 years
Find the total loan amount (A) using the simple interest formula:
A=P(1+rt)
$10,000
$12,500
$15,000
$13,450
Which of these would you expect to be higher:
Zero
Simple Interest Rate
APR
APR includes the simple interest plus...
Fees
Principal
Time
How do you express 7.5% as a decimal?
0.75
0.075
0.0075
7.5
Principal: 1,000
Interest: 5.5%
Time: 8 months
Which is the correct formula?
A = 1000(1+0.055*(8/12))
A = 1000(1+0.55*(8/12))
A = 1000(1+0.055*8)
A = 1000(1+0.55*12)
Term
The original amount of money that you're borrowing from a lender
The amount of time a loan lasts.
The amount the lender is charging you for borrowing money.
Principal
The original amount of money that you're borrowing from a lender
The amount of time a loan lasts.
The amount the lender is charging you for borrowing money.
Interest Rate
The original amount of money that you're borrowing from a lender
The amount of time a loan lasts.
The amount the lender is charging you for borrowing money.
Which of these is NOT a factor that contributes to whether or not you qualify for a loan, and once you do, what your interest rate will be?
Credit Score
Debt-to-Income Ratio
Collateral
Portfolio Balance
What is a Payday Loan?
A loan taken out against your future paycheck.
A loan taken out against your previous paycheck.
A loan you offer someone else from your future paycheck.
A loan you offer someone else with your previous paycheck.
What makes payday loans predatory? (Two correct answers.)
They have very high interest rates.
They aren't underwritten, so they don't ensure that the borrower can pay them back
They are generally required to be repaid in one month, which is a very low amount of time.
They will take you to collections if you don't repay the loan.
You borrow $1000 at 10%. The loan lasts for three months.
Find the total loan amount (A) using the simple interest formula:
A=P(1+rt)
$1,000
$1,025
$1,050
$1,250
Todd invested $4,000 in a bond at a yearly rate of 4.5%. He earned $540 in interest. How long was the money invested?
1 year
3 years
5 years
7 years
A bank is offering 3.5% simple interest on a savings account. If you deposit $7,500, how much interest will you earn in two years?
$500
$525
$8,000
$8,025
Principal: $25,000
Interest: 55%
Time: 4 years
Find the total loan amount (A) using the simple interest formula:
A=P(1+rt)
70,000
80,000
90,000
100,000
