Managing Financial Information

Question 1

The chart shows a range of credit scores.

Revolt · Accepted Answer

find it hard to get a loan.

Question 2

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 3

A credit score is based in part on

Revolt · Accepted Answer

payment history and total debt.

Question 4

What is a benefit of obtaining a personal loan?

Revolt · Accepted Answer

getting money with special repayment terms

Question 5

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 6

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

Revolt · Accepted Answer

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

Question 7

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

Revolt · Accepted Answer

a credit card.

Question 8

Which statement is true of both mortgages and auto loans?

Revolt · Accepted Answer

They are secured loans and generally require a down payment.

Question 9

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 10

credit cardmortgagetaxbond

Revolt · Accepted Answer

mortgage

Managing Financial Information Answers