Credit and Loans

Question 1

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 2

good credita bank accounttax returns

Revolt · Accepted Answer

good credit

Question 3

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 4

What is a benefit of obtaining a personal loan?

Revolt · Accepted Answer

getting money with special repayment terms

Question 5

Which statement is true of both mortgages and auto loans?

Revolt · Accepted Answer

They are secured loans and generally require a down payment.

Question 6

Consumers who pay more than the minimum payment on credit cards

Revolt · Accepted Answer

pay less interest in the long run.

Question 7

An example of secured credit is a

Revolt · Accepted Answer

mortgage.

Question 8

Which best describes a way people can use personal loans?

Revolt · Accepted Answer

to pay for college

Question 9

Which describes an example of using unsecured credit?

Revolt · Accepted Answer

Someone buys new gutters for a home with a credit card.

Question 10

A way to build good credit is

Revolt · Accepted Answer

paying bills when they are due.

Credit and Loans Answers