Credit and Debt

Last updated over 5 years ago

5 questions

SSEPF4.c

SSEPF4.a

SSEPF4.b

SSEPF4.c

Last updated over 5 years ago

5 questions

Question 1

You are trying to determine which 36-month simple interest loan is the best deal. Which should you use to compare the loans?

the number of months of the loan

whether the lender is close your home 

your credit score

the annual percentage rate on the loan

SSEPF4.c

Question 2

capacity to repay the loan

previous ownership of a home

character (credit score)

whether the borrower has collateral

SSEPF4.a

Question 3

Taking out an extended loan from a pay day lender

Using his car as collateral at a title pawn lender

Putting the $5000 on a credit card

An installment loan from a bank or credit union

SSEPF4.b

Question 4

A fixed rate gives you constant, predictable payments.

A fixed rate is easier to refinance than a variable rate.

A fixed rate will always be lower than a variable rate.

A fixed rate builds your credit score more than a variable rate.

SSEPF4.c

Question 5

Financial institution A's loan  would cost less because it has simple interest.

Financial institution B's loan would cost less because it has compound interest.

More information is needed to make a determinination.

SSEPF4.c

Question 1

the number of months of the loan

whether the lender is close your home 

your credit score

the annual percentage rate on the loan

Question 2

capacity to repay the loan

previous ownership of a home

character (credit score)

whether the borrower has collateral

Question 3

Taking out an extended loan from a pay day lender

Using his car as collateral at a title pawn lender

Putting the $5000 on a credit card

An installment loan from a bank or credit union

Question 4

A fixed rate gives you constant, predictable payments.

A fixed rate is easier to refinance than a variable rate.

A fixed rate will always be lower than a variable rate.

A fixed rate builds your credit score more than a variable rate.

Question 5

Financial institution A's loan  would cost less because it has simple interest.

Financial institution B's loan would cost less because it has compound interest.

More information is needed to make a determinination.

Both loans would cost the same because they each have a 6% interest rate.

Both loans would cost the same because they each have a 6% interest rate.