Mortgages and Home Ownership — Unit test Answers

Kenya used a debit card to buy a pair of jeans. Which statement is true about her method of payment?

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Before giving a loan to a customer, a lender examines the customer’s credit report. Which explains why the lender examines the customer’s credit report?

Mo has a credit card that gives a 3% discount on every purchase. The annual percentage rate on the card is 12%. He is purchasing an electronic reader for $140. Check all that apply.

Kylie has $500 to open a checking account. She wants an account with the lowest fees. She sometimes writes a check for more money than she has in her account. She plans on using only her bank’s ATM to deposit her paychecks and withdraw cash. Bank Account Terms and ConditionsWhich checking account would be best for Kylie?

Which account has the lowest minimum balance requirement?Bank Account Terms and Conditions

What impact might an economic downturn have on a borrower’s fixed-rate mortgage?

Sal and Jen went to the store together, and each bought the same car stereo.Sal used a card to make the purchase, and the full amount was immediately withdrawn from his bank account.Jen used a card to make the purchase, and she received a bill within 15 days of the purchase. She paid $21.30 for the next 18 months until the bill was paid in full. The full payment included $58.60 in interest.Which statement describes Sal’s purchase?

Pete is trying to get a loan. He has a credit score of 480. How is Pete’s lender likely to view this credit score?

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

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

Vera has a June credit card balance of $476.09. Her payment due date is June 27th, with a grace period of 5 days. If her payment is late, the credit card company charges a $30 late fee. Vera wants to pay the full amount to have a zero balance. How much should she pay if her online payment is processed on July 6th?$

Which describes an example of using unsecured credit?

Which is an example of closed-end credit?

Tamera and Rupert each applied for the same credit card through the same company. Tamera has a positive credit history. Rupert has a negative credit history. Which compares their credit limits and likely interest rates?

Before applying for a credit card, Jacob examines his credit report. Which explains why Jacob might examine his credit report?

When people take out a mortgage, they must pay back the money

The table shows a schedule of Jorge’s payment plan for a car. Jorge’s Payment PlanYearBalanceMonthly PaymentEnd of YearBalance1$15,469.80$257.83 2 $257.83 3 $257.83 4 $257.83 5 $257.83 6 $257.83 How many years will it take Jorge to pay off the loan?

What is easy-access credit?

Karen has $800 to open a checking account. She wants an account with the lowest fees. She only writes about five checks per month and her employer has direct deposit. She does not plan on using the ATM or online banking. Bank Account Terms and ConditionsWhich checking account would be best for Karen?