Career Math
___ offer short-term credit at very high interest rates, while ___ typically provide
credit for purchasing items on an installment basis. - ANS - Payday lenders
banks
\A ___card allows consumers to make purchases at specific retailers using credit.
Users of this type of card must pay the entire amount at the end of the ___. - ANS
- revolving credit account
Billing Cylce
\Adam bought a treadmill and a dirt bike from a sports equipment store for y
dollars. He signed an installment agreement requiring an 8% down payment and
monthly payments of x dollars for 18 months. Which expression correctly
represents Adam's finance charge? - ANS - 0.8
\Andy has a credit rating of 800, and Mia has a credit rating of 585. They both
apply for the same loan amount from Newton Bank. The bank approves Andy's
loan at 6.5%, and Mia is charged 4 percentage points more because of her lower
credit rating. What interest rate does Mia have to pay? - ANS - 10.5%
\Bob has taken out a loan of $15,000 for a term of 48 months (4 years) at an
interest rate of 6.5%. Using the amortization table provided, what will be his total
finance charge over the course of his loan? - ANS - $2,071.20
\Janet lives in Miami and has low to moderate income. She wants to buy a home
in Miami priced at $150,000 but doesn't have enough savings to put up the 20%
down payment on a conventional mortgage. Since she isn't part of a military
family, which type of loan should Janet consider obtaining for her mortgage? -
ANS - FHA loan
\Kareem recently learned that he has a good credit score and is planning to apply
for a loan. What could negatively affect Kareem's credit score? - ANS - missing a
payment
\Marcus realized that he misplaced his credit card and that it may have been
stolen. He was worried that it could be misused. He called the credit card
company and notified them that the card had been misplaced. A few hours later,
he got a text message stating that a purchase of $1,650 had been made using his
card. He called the credit card company again and reported this fraudulent
transaction. He also informed them that he had notified them the card was
missing before the fraudulent transaction was made. The credit card company
official reassured Marcus that he would not have to pay this amount. Which law
protects Marcus in this scenario? - ANS - Fair Credit Billing Act
___ offer short-term credit at very high interest rates, while ___ typically provide
credit for purchasing items on an installment basis. - ANS - Payday lenders
banks
\A ___card allows consumers to make purchases at specific retailers using credit.
Users of this type of card must pay the entire amount at the end of the ___. - ANS
- revolving credit account
Billing Cylce
\Adam bought a treadmill and a dirt bike from a sports equipment store for y
dollars. He signed an installment agreement requiring an 8% down payment and
monthly payments of x dollars for 18 months. Which expression correctly
represents Adam's finance charge? - ANS - 0.8
\Andy has a credit rating of 800, and Mia has a credit rating of 585. They both
apply for the same loan amount from Newton Bank. The bank approves Andy's
loan at 6.5%, and Mia is charged 4 percentage points more because of her lower
credit rating. What interest rate does Mia have to pay? - ANS - 10.5%
\Bob has taken out a loan of $15,000 for a term of 48 months (4 years) at an
interest rate of 6.5%. Using the amortization table provided, what will be his total
finance charge over the course of his loan? - ANS - $2,071.20
\Janet lives in Miami and has low to moderate income. She wants to buy a home
in Miami priced at $150,000 but doesn't have enough savings to put up the 20%
down payment on a conventional mortgage. Since she isn't part of a military
family, which type of loan should Janet consider obtaining for her mortgage? -
ANS - FHA loan
\Kareem recently learned that he has a good credit score and is planning to apply
for a loan. What could negatively affect Kareem's credit score? - ANS - missing a
payment
\Marcus realized that he misplaced his credit card and that it may have been
stolen. He was worried that it could be misused. He called the credit card
company and notified them that the card had been misplaced. A few hours later,
he got a text message stating that a purchase of $1,650 had been made using his
card. He called the credit card company again and reported this fraudulent
transaction. He also informed them that he had notified them the card was
missing before the fraudulent transaction was made. The credit card company
official reassured Marcus that he would not have to pay this amount. Which law
protects Marcus in this scenario? - ANS - Fair Credit Billing Act
