The Cost of Credit — Quiz Answers

The table shows a schedule of Evita’s payment plan for a used car. Evita’s Payment Plan for the First Three Years Year Balance Monthly Payment End of Year Balance 1 356 point 8 2 dollars 2 356 point 8 2 dollars 3 356 point 8 2 dollars 8 dollars comma 563 point 3 9 Evita paid 2 dollars comma 408 point 9 1 in interest. What was the selling price of the car?

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?

Which is an example of easy-access credit?

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

Caitlyn has a credit card with a spending limit of 1 dollars comma 500 and an APR (annual percentage rate) of 18 percent During the first month, Caitlyn charged 375 dollars and paid 250 dollars of that in her billing cycle. Which expression will find the amount of interest Caitlyn will be charged after the first month?

The table shows a schedule of Jorge’s payment plan for a car. Jorge’s Payment Plan Year Balance Monthly Payment End of Year Balance 1 15 dollars comma 469 point 8 0 257 point 8 3 dollars 2 257 point 8 3 dollars 3 257 point 8 3 dollars 4 257 point 8 3 dollars 5 257 point 8 3 dollars 6 257 point 8 3 dollars How many years will it take Jorge to pay off the loan?

Tran has a credit card with a spending limit of 2 dollars comma 000 and an APR (annual percentage rate) of 12 percent During the first month, Tran charged 450 dollars and paid 150 dollars of that in his billing cycle. Which expression will find the amount of interest Tran will be charged after the first month?

The table shows a schedule of Igor’s payment plan for a used car. Igor’s Payment Plan for the First Three Years Year Balance Monthly Payment End of Year Balance 1 245 point 3 3 dollars 2 245 point 3 3 dollars 8 dollars comma 831 point 8 8 3 245 point 3 3 dollars How much is Igor’s total closed-end credit for the car?

Sienna has a car loan with an annual interest rate of 4 point 8 percent 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?

The table shows a schedule of Inga’s payment plan for a car. Inga’s Payment Plan for the First 3 Years Year Balance Monthly Payment End of Year Balance 1 19 dollars comma 691 point 2 8 273 point 4 9 dollars 16 dollars comma 409 point 4 0 2 16 dollars comma 409 point 4 0 273 point 4 9 dollars 13 dollars comma 127 point 5 2 3 13 dollars comma 127 point 5 2 273 point 4 9 dollars 9 dollars comma 845 point 6 4 How many more years will it take Inga to pay off the loan?