Credit and Loans

Question 1

Use the formula for simple interest.A=(P)(r)(t)Remember, A refers to the interest accrued.Calculate the total interest Tom would pay, in addition to paying back his $9,000 in principal.

Revolt · Accepted Answer

C: $2,970

Question 2

Use the formula for annual compound interest.A = P (1 + )ntRemember, A refers to the total amount owed.Calculate the total amount that Tom would repay.

Revolt · Accepted Answer

B: $11,337

Question 3

If Claire does not make any payments, how much will she owe after ten years?

Revolt · Accepted Answer

A: $12,136.67

Question 4

Zachary's student loans are an example of what type of loan?

Revolt · Accepted Answer

B: unsecured loan

Question 5

How can Elizabeth most responsibly pay off her bill sooner?

Revolt · Accepted Answer

D: pay more than the minimum payment each month

Question 6

What steps can an individual take to improve a credit score? Check all that apply.make all loan payments on timecheck credit reports for accuracyavoid opening credit accounts that are not neededapply for several new credit cardsuse all available creditkeep balances low

Revolt · Accepted Answer

A: make all loan payments on time; B: check credit reports for accuracy; C: avoid opening credit accounts that are not needed; F: keep balances low

Question 7

How does the decision to make a down payment benefit Jordan’s financial situation?

Revolt · Accepted Answer

B: It guarantees a higher price if the car is resold.

Question 8

What did you include in your answer? Check any that apply.

Revolt · Accepted Answer

A: the fact that the compound interest loan will require a smaller total repayment; B: the fact that the simple interest loan has a rate that is too high

Credit and Loans Answers

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