Q4W5 Economics
How long has the driver been licensed?
5 years
The _____ require lenders to disclose the monthly interest rates and the method they use to calculate finance charges.
Truth in Lending Laws
Do you need room to transport a large group of people, or do you need room for only two or four people?
Two or four people
Which account has Maria been late in paying? How late was she?
University Bank, 30 days late
What is the difference between the cost to insure an economy car versus a sports car?
Very big difference
Under what circumstances can you make changes to the apartment, such as painting a room or changing the locks?
With written permission from the Landlord
Which part of the resume should include part-time and summer jobs?
Work History
Can you hang pictures on the wall of this apartment?
Yes, with small nails
According to this report, how much total debt does Maria Hill carry?
$10,602
Which part of Dream University's offer is better?
$3,000 scholarship
How much does each university expect your family to contribute toward the cost of your education?
$5,000
After five years, how much greater would that original $3,000 debt be?
$6,863
Installment loans have a fixed number of payments and are often used for large purchases, such as a car. How much money has Maria borrowed in installment loans?
$8,205
How much would your $3,000 have earned in the stock market after 10 years?
$9,317
How old is the driver?
21
How many miles per year will the car be driven?
30,000
Which of the following do not need to be repaid?
Federal Pell Grant, Federal Supplemental Educational Opportunity Grant
Which of the following forms of financial aid are offered only to students who have the greatest need?
Federal Supplemental Educational Opportunity Grant
A co-signer is a person with good credit who guarantees that a loan will be paid if the original borrower is unable to make payments. Which loan did Maria have a co-signer on? How much debt will the co-signer have to pay off if Maria is unable to?
First City Bank, $3,217
Overall, which financial aid offer do you think is better?
Great State University, because it is cheaper overall, which means you'll have to take out less loans than if you went to Dream University.
Which part of the resume tells a potential employer how to contact you?
Heading
After comparing the vehicles in the chart, which one would you buy?
Honda Civic
Suppose you graduated from college six months ago, and you just received a letter from a lender telling you that it is time to begin paying back your student loan. What kind of loan did you have?
subsidized loan
Why do you think there is a difference?
Auto insurance is more expensive for sports cardrivers because they are statistically more likely to drive faster and therefore cause accidents. Sports cars and higher-end make and models are at a higher risk of theft, which means comprehensive coverage is more expensive for owners of these types of vehicles.
Supposed you are Vice President of the Debate Club and a member of your school's basketball team. Where will you put this on your resume?
Affiliations/Interests
How will the car be driven--for commuting to school or for business?
Both
Which part of Great State University's offer is better?
Cheaper tuition cost, and $1,250 work-study job
Which account has Maria paid off? What was the largest balance she had on that account?
Morgans Dept. Store, $127
Choose three specific vehicles within your category that you particularly like. Include both the make and model.
Nissan Altima, Toyota Prius, Toyota Camry, Honda Civic
Do you need a large amount of cargo space?
No
Has the driver had any accidents or tickets in the last five years?
No
Suppose your old car has just broken down, and you won't be able to afford to fix it for months. Under the terms of this lease, can you leave the car on the street in front of your apartment?
No
Assume you want a job as an editorial assistant for a local magazine. In which part of your resume do you indicate this?
Objective
What can the landlord do if you abandon some of your property when you move out?
Deduct appropriate charges from your deposit
Which do you think is a wiser choice—investing in the stock market or paying off debt? Explain.
Paying off the debt, because the debt will ruin your credit score and keep piling on unless you address it.
If this apartment is too expensive, how could you make your housing costs more affordable?
Seek a roommate to split the cost with you
Now, decide which options you would like on your new vehicle.
anti-lock brakes, air conditioning, power locks, power steering, airbags
What type of driving do you do?
city, suburban, rural, long-ish trips (down the hill)
If you use your car as _____ (property used to secure a loan), and you do not pay the loan back, the creditor has the right to repossess your car.
collateral
Now go back through the reasons you listed in Question I. Find the three most important points and write them in the spaces below. These are probably the things that you will use your vehicle for most of the time.
commuting to school, to the store, pulling a trailer, and going to my friend's house
What are all your reasons for buying a car?
commuting to work, to school, to the store, to a friend's house, etc without needing to take up my parent's time
When a bank extends you _____, it allows you to borrow money and pay it back later with interest.
credit
The kind of organization that maintains a record of your past borrowing and bill-paying habits is a _____.
credit bureau
Creditors use your ability to repay debt and your history of borrowing and repayment to give you a _____, which is their evaluation of your credit worthiness.
credit rating
Which major vehicle categories do you have left?
economy hatchback, four door sedan, two seater convertible, full size pickup truck
When you pay your credit-card bills, you pay back not only the principal but also interest and fees, which together are called _____.
finance charges
If you have more than one category left, choose the one you would prefer.
four door sedan
