Font size
WorksheetsUnit 7.1-7.4 Quiz
Total questions: 20
Worksheet time: 23mins
Which type of debt is considered revolving credit?
A credit card
A mortgage
An auto loan
A small business loan
Mike is considering a 9.99%, $10,000 loan to be repaid after 6 years. What does that mean?
Term is 9.99%, principal is $10,000, interest rate is 6 years
Term is 6 years, principal is $10,000, interest rate is 9.99%
Term is $10,000, principal is 9.99%, interest rate is 6 years
Term is $10,000, principal is 6 years, interest rate is 9.99%
Using the equation for simple interest, how much should JJ expect to pay the bank, in total, for his 3 year, $10,000 loan at 5% interest?
$1,500
$11,500
$31,500
$150,000
Having a good credit score, making a larger down payment, and finding a cosigner with good credit are all ways to...
Decrease your principal
Decrease your interest rate
Increase your term
Increase your total payments
All of the following are methods of reducing your monthly payment on a secured loan EXCEPT:
Having a good credit score
Putting down a larger down payment
Increasing your income
Lengthening the term of the loan
What is considered to be a good first step when you are struggling to pay your secured loans?
Call your lender to work out a payment plan
Catch up by using your credit card
Take a short term loan from a payday lending service
Stop payments on other debt because secured debt is more important
All of the following are benefits of federal student loans compared to private student loans, EXCEPT…
Federal student loans generally have lower interest rates
Federal student loans can be forgiven under specific circumstances
Federal student loans provide more options for repayment
Federal student loans have no limit to how much you can borrow
Christine owes $23,000 in student loans and has a minimum payment of $230 per month. She decides to make an additional $100 payment towards the loan principal every month. What impact will the additional payment have?
The additional payment will increase the total cost of her loan
The additional payment will decrease the total cost of her loan
The additional payment will increase the time it takes to repay her loan
The additional payment will decrease the interest rate charged on her loan
Which of the following student loan repayment plans would result in the same monthly payment over the course of the loan?
Standard Repayment Plan
Graduated Repayment Plan
Income-Based Repayment Plan
Pay As You Earn (PAYE) Repayment Plan
Calculate the value of A.
(a)
Calculate the value of A.
(a)
Calculate the value of A.
(a)
Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.
$160
$800
$80,000
$16
Principal: $6,000
Interest Rate: 5%
Time: 6 months
The expected decline in value over time of an item.
Lender
Loan amount or principal
Depreciation
Credit history
A(n) (a) requires a more extensive look at your credit history, usually from all three credit bureaus while a(n) (b) will typically only look at one.
A(n) (a) has a shorter term, usually 3, 5, or 7 years while a(n) (b) has longer terms, usually 15 or 30 years.
How do lenders alter the loan terms of a loan for those with poor credit to make up for the added risk?
What are the potential consequences of not paying your loan?
Repossession of collateral
Legal action
Damage to credit score
Increased interest rates
Nothing, just get another loan
If the total cost of a home is $300,000 and the buyer is required to make a 20% down payment, how much is the down payment?
$50,000
$60,000
$70,000
$80,000
