Credit and Loans

Question 1

What is the compound interest on a three-year, $100.00 loan at a 10 percent annual interest rate?

Revolt · Accepted Answer

$33.10

Question 2

Which best describes a way people can use personal loans?

Revolt · Accepted Answer

to pay for college

Question 3

A credit score is based in part on

Revolt · Accepted Answer

payment history and total debt.

Question 4

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

Revolt · Accepted Answer

$20 per year until the loan is paid off.

Question 5

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

Revolt · Accepted Answer

a market's condition

Question 6

credit cardmortgagetaxbond

Revolt · Accepted Answer

mortgage

Question 7

What is a benefit of obtaining a personal loan?

Revolt · Accepted Answer

getting money with special repayment terms

Question 8

A way to build good credit is

Revolt · Accepted Answer

paying bills when they are due.

Question 9

Which describes the difference between simple and compound interest?

Revolt · Accepted Answer

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

Question 10

Which statement is true of both mortgages and auto loans?

Revolt · Accepted Answer

They are secured loans and generally require a down payment.

Credit and Loans Answers