p finance 3

Devonte is balancing his checking account. His account statement does not include a deposit of $107.00 that he made on November 1st. What is Devonte's actual account balance?

$1330.26

The simple interest on a loan of $200 at 10 percent interest per year is

$20 per year until the loan is paid off.

Selma deposited a paycheck for $378.42. She'll use the check register to record her transaction. What will be her new balance?

$3014.83

Vera has a June credit card balance of $476.09. Her payment due date is June 27th, with a grace period of 5 days. If her payment is late, the credit card company charges a $30 late fee. Vera wants to pay the full amount to have a zero balance. How much should she pay if her online payment is processed on July 6th?

$506.09

Lyle deposited a check for $75.26. He'll use the check register to record his transaction. What will be his new balance?

$896.44

The table shows a schedule of Inga's payment plan for a car. How many more years will it take Inga to pay off the loan?

3 years

Sienna has a car loan with an annual interest rate of 4.8%. She will make the same monthly payment for 48 months, after which the loan will be paid back. Diego says that Sienna's loan is an example of closed-end credit while Sienna says it is an example of open-end credit. Which statement about the loan is true?

Diego is correct because the loan has to be paid in full by a specific date.

Kanya has a credit card that gives a 6% discount on every purchase and free shipping when used online. The annual percentage rate on the credit card is 12%. Kanya wants to buy a laptop that costs $420. Which statement about the cost of the laptop is true?

If Kanya uses the credit card and pays the full balance during the billing cycle, she will spend $25.20 less than paying cash for the laptop.

Kendrick is planning to buy a house. Which explains why he should establish a positive credit history before buying the house?

It will be easier for him to get a loan to buy the house.

Kenya used a debit card to buy a pair of jeans. Which statement is true about her method of payment?

Kenya used money directly from her bank account to buy the jeans.

Which helps to establish a negative credit history?

Pay less than the minimum amount due.

Maura had to get a $350 emergency loan at a very high interest rate to pay for dental work. The lender did not need her credit history. If she does not pay back the loan within three weeks, she will have to pay an extra $50. Raina says the loan is an example of easy-access credit while Maura says it is an example of open-end credit. Which statement about the loan is correct?

Raina is correct because the loan has a large fee if it is not repaid on time.

The graph shows the average price of homes in the United States from 2009 to 2014. Based on the information in the graph, what is the most reasonable prediction?

Rising home prices in recent years means that more people will need to take out mortgages.

Which describes the difference between simple and compound interest?

Simple interest is paid on the principal, while compound interest is paid on the principal and interest accrued.

What best explains the relationship between a borrower's credit score and a down payment requirement?

Someone with a high credit score may be required to make a lower down payment.

Tamera and Rupert each applied for the same credit card through the same company. Tamera has a positive credit history. Rupert has a negative credit history. Which compares their credit limits and likely interest rates?

Tamera's credit limit is most likely higher than Rupert's, and her interest rate is most likely lower.

The type of credit people are most likely to use for small purchases during their lifetime is

a credit card

A borrower with bad credit is likely to be charged

a high interest rate.

What is easy-access credit?

a loan given for a short period of time that is not dependent on credit history

What best determines whether a borrower's investment on an adjustable rate loan goes up or down?

a market's condition

For which buyer would a lender most likely approve a $200,000 mortgage?

a person with a credit score of 760 with a small amount of debt who has had steady employment for many years

Kylie has $500 to open a checking account. She wants an account with the lowest fees. She sometimes writes a check for more money than she has in her account. She plans on using only her bank's ATM to deposit her paychecks and withdraw cash. Which checking account would be best for Kylie?

account

Irma has $500 to open a checking account. She wants an account with the lowest fees. She plans to use only her bank's ATM to deposit her paychecks and withdraw cash. Which checking account would be best for Irma?

account a

Becca has $500 to open a checking account. She wants an account with the lowest fees. She writes about 12 checks per month and her employer has direct deposit. She plans to only use her bank's ATM four times a month. Which checking account would be best for Becca?

account b

Terrell has $300 to open a checking account. He plans to use the ATM four times per month at his local branch. He does not overdraft his account. Which checking account would be best for Terrell?

account b

Which account has the lowest minimum balance requirement?

account d

This year, Mr. Thomas has a higher credit score than he did last year. Which of the following should Mr. Thomas expect with the improved score? Check all that apply.

an easier time getting a car loan an easier time renting an apartment

Which bank does not charge at all for using the ATM?

bank a

An adjustable-rate mortgage is one that

can change

The chart shows the costs associated with the purchase of a new home. In the chart, closing costs refers to the

costs associated with obtaining the loan.

In determining whether to issue a loan, banks are not allowed to ask about an applicant's

country of origin.

Homeowners typically pay property taxes to

help finance state and local governments.

Which is an example of closed-end credit?

home loan

The graph shows changes in interest rates since 1975. What best sums up the information shown on the graph?

interest rates can go up and down

Which is a desirable characteristic to look for when choosing a credit card?

no annual fee

A way to build good credit is

paying bills when they are due.

A credit score is based in part on

payment history and total debt.

A balloon payment mortgage makes the best sense for borrowers who are

planning on selling their homes before the term of the loan ends.

Quincy listed information from his credit report. Which list could Quincy have written?

previous address, current address, bankruptcy, car loan payment history

Both mortgages and auto loans

require a down payment in general.

Before giving a loan to a customer, a lender examines the customer's credit report. Which explains why the lender examines the customer's credit report?

to determine if the customer is likely to pay back the loan

Which best describes a way people can use personal loans?

to pay for college

What is the best reason for homebuyers to create a budget before taking out a mortgage?

to plan how to pay off the money they have borrowed

Tyler is using a credit card to purchase a television. Which of the following should Tyler expect? Check all that apply.

to receive a bill at a later date to be able to pay for it over time to pay interest if he does not pay in full by a certain date