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According to the video, all of the following are some additional options to avoid identity theft, except:

Use as few online sources as possible.

Joshua borrowed $1,000 for one year and paid $100 in interest. The bank charged him a service charge of $10. What is the finance charge on this loan?

Finance charge $110 100 + 10 = 110 interest + bank service charge= finance charge

Lexi currently has a net worth of $110,465 and liabilities equal to $24,735. What does her debt ratio indicate?

For every $1 of net worth, Lexi has 22 cents of liabilities.

Which of the following is mentioned in the video as the top identity theft issue?

Government Documents

A few years ago, Simon Powell purchased a home for $220,000. Today, the home is worth $300,000. His remaining mortgage balance is $100,000. Assuming that Simon can borrow up to 80 percent of the market value, what is the maximum amount he can currently borrow against his home?

Amount available for borrowing $140,000 (300,000 x 80%) - 100,000 = 140,000 (today's value * %) -mortgage= credit limit available

Landon is looking to obtain a home equity loan. A lender will loan 65% of the home's current market value, which is $200,000. Landon currently owes $90,000 on his original home mortgage. What is his home equity credit limit available?

$40,000

Rachel currently has a net worth of $132,250 and liabilities equal to $38,650. What is her debt ratio?

0.29

Joshua borrowed $1,000 for one year and paid $100 in interest. The bank charged him a service charge of $10. If Joshua repaid the loan in 12 equal monthly payments, what is the APR? (Enter your answer as a percent rounded to 1 decimal place.)

APR 20.3% 2 x 12 x 110 = 2640 1000(12+1) = 13000 2640/13000 = .20307 rounded to 20.3%

Which of the following is an example of closed-end credit mentioned in the video?

Automobile Loans

___________________________ is more common and has a _______________ interest rate charged by most lenders.

Closed-end credit; lower

When compared to __________________, ___________________ is often more difficult to obtain because the lender must rely upon your word that you will pay back the loan.

Closed-end credit; open-end credit

According to the video, what should you do if your identity is stolen?

Contact the creditors for any accounts that have been tampered with or opened fraudulently and Contact the fraud department of each of the three major credit bureaus.

Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now, Madeline is living at home and works in a shoe store, earning a gross income of $820 per month. Her employer deducts a total of $145 for taxes from her monthly pay. Madeline also pays $95 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $120 per month. Calculate her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.) Can she currently afford the school loan?

Debt Payments-to- Income Ratio: With college loan 32% Without college loan 14% No 820 - 145 = 675 95 / 675 = .14 14% without college loan 95 + 120 = 215 215 / 675 = .32 32% with college loan

What are the interest cost and the total amount due on a six-month loan of $1,500 at 13.2 percent simple annual interest?

Interest Cost $99 Total amount due $1,599 - I = Prt- I = (1500)(.132)(6/12) = 99 - Total Cost = Down Payment + Principal Borrowed + Interest - Total Cost = 0 + 1500 + 99 = 1599

All of the following are factors mentioned in the video that individuals should consider before obtaining a home equity loan, except:

Location of home

All of the following are reasons mentioned in the video of why homeowners obtain home equity loans, except:

To pay for family vacations.

According to the video, the quickest way to improve your debt-to-equity ratio is:

To pay off some of your debts.

Robert Sampson owns a townhouse valued at $140,000 and still has an unpaid mortgage of $110,000. In addition to his mortgage, he has the following liabilities: Visa$ 565MasterCard480Discover card395Education loan920Personal bank loan800Auto loan4,250Total$ 7,410 Robert's net worth (not including his home) is about $21,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property. a. What is Robert's debt-to-equity ratio? (Round your answer to 2 decimal places.) b. Has he reached the upper limit of debt obligations?

a. Debt-to-equity ratio 0.35 b. No

After visiting several automobile dealerships, Richard selects the car he wants. He likes its $10,000 price, but financing through the dealer is no bargain. He has $2,000 cash for a down payment, so he needs a loan of $8,000. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $8,000 for a period of four years at an add-on interest rate of 11 percent. a. What is the total interest on Richard's loan? b. What is the total cost of the car? c. What is the monthly payment? d. What is the annual percentage rate (APR)? (Enter your answer as a percent rounded to 2 decimal places.)

a. Total interest $3,520 b. Total cost $13,520 c. Monthly payment $240 d. APR 21.55% - I = Prt- I = (8000)(.11)(4) = 3520 - Total Cost = Down Payment + Principal Borrowed + Interest - Total Cost = 2000 + 8000 + 3520 = 13520 - Monthly Payment = (Principal Borrowed + Total interest) / Total number of payments - Monthly Payment = (8000 + 3520) / 48 - APR= (2 × n × I) / [P × (N + 1)] - APR = (2 × 12 × 3520) / [8000 × (48+1)] = 21.55%