WorksheetsCredit Review (part 1)
Total questions: 10
Worksheet time: 6mins
Miley owes Paige $100. Miley would be considered the:
Creditor
Debtor
Ty borrows $20,000 to buy a car. Loan details: 4 years @ 8%.
Principal
20,000
Interest rate
8
Term
4
William has paid $7,000 of his $19,000 car loan. What is the current balance of his loan?
$7,000
$19,000
$12,000
$10,000
Kaylee borrowed money to buy a townhouse. She paid a down payment of $20,000, and took out a loan for $300,000. This loan is a _________________ loan
Secured
Unsecured
Which is NOT an example of a secured loan?
Car loan
House loan
Student loans
Business loan on a piece of equipment
Vocab term: to sell for cash
(a)
What is TRUE about an installment loan?
The payment amount changes each month because interest and principal change each month.
The payment amount stays the same each month because interest and principal stay the same each month.
The payment amount stays the same each month but principal and interest change each month.
True or False: Sean gets a loan for a car. Each month, the principal amount decreases and the interest amount increases.
True
False
Elliot graduates from high school and gets her first credit card. A credit card is a good example of:
Revolving credit
Installment loan
Term loan
Rotating credit
Reth needs a way to get money quick. Which of these should he avoid because they are expensive sources of credit with high interest rates?
Payday lenders
Pawn shops
Rent-to-own centers
He should avoid all of these places
