Question 1

Calculate the average percentage rate (APR)for an add-on loan with 36 monthly installments.The principal is $4,000;the stated interest rate is 6%.(Show all work. )

Accepted Answer

The answer of Calculate the average percentage rate (APR)for an...

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-It is [legal | illegal] for a lender to charge a pre-payment penalty.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 3

Downward Motors has offered Vicki either a $2,500 rebate or a 2%,4-year loan on the new SUV she is purchasing for $33,000 with a $3,000 down payment.Vicki has done her homework and knows that she can get a 6%,4-year loan at his credit union.Should Vicki take the rebate or the 2% loan from the dealer? (Show your key strokes. )

Accepted Answer

@#IMG-DLM& Taking the rebate and financi

Question 4

The purchase of credit life insurance is highly recommended by most financial planning experts.

Accepted Answer

A) True 
 B)False

Question 5

Loans from whole life insurance policies are structured so that the interest rate on the loan is set at the time the loan is made.

Accepted Answer

A) True 
 B)False

Question 6

One can calculate whether to take the lower interest rate or the rebate with a financial calculator.

Accepted Answer

A) True 
 B)False

Question 7

Credit unions offer some of the most attractive loan terms available.

Accepted Answer

A) True 
 B)False

Question 8

Generally,collateral for an installment loan may be seized and liquidated by the lender if the borrower has paid the loan in full.

Accepted Answer

A) True 
 B)False

Question 9

Installment loans are typically repaid in one payment.

Accepted Answer

A) True 
 B)False

Question 10

An acceleration clause allows the lender to require immediate repayment of the interest due if you miss a payment.

Accepted Answer

A) True 
 B)False

Question 11

A legal claim that allows credits to liquidate loan collateral is a

Accepted Answer

A)  loan. 
B)  note. 
C)  security claim. 
D)  lien. 
E)  none of these 
A)  loan. 
B)  note. 
C)  security claim. 
D)  lien. 
E)  none of these

Question 12

____ loans do not have to be repaid until after you graduate from college.

Accepted Answer

A)  Stafford and Perkins 
B)  Stafford and PLUS 
C)  Perkins and PLUS 
D)  PLUS and SLS 
E)  Perkins and SLS 
A)  Stafford and Perkins 
B)  Stafford and PLUS 
C)  Perkins and PLUS 
D)  PLUS and SLS 
E)  Perkins and SLS

Question 13

Purchasing credit life or disability insurance protection is usually

Accepted Answer

A)  required in order to make the loan. 
B)  non-negotiable. 
C)  at the lender's option. 
D)  very costly. 
E)  a good idea for the borrower. 
A)  required in order to make the loan. 
B)  non-negotiable. 
C)  at the lender's option. 
D)  very costly. 
E)  a good idea for the borrower.

Question 14

Savings and loan associations dominate the consumer loan market.

Accepted Answer

A) True 
 B)False

Question 15

When credit life or disability insurance protection is required as a condition of a loan,the cost

Accepted Answer

A)  must be added to the finance charge. 
B)  must be included in the APR calculation. 
C)  is generally very reasonable. 
D)  a and b 
E)  a,b,and c 
A)  must be added to the finance charge. 
B)  must be included in the APR calculation. 
C)  is generally very reasonable. 
D)  a and b 
E)  a,b,and c

Question 16

Credit unions dominate the consumer loan market.

Accepted Answer

A) True 
 B)False

Question 17

When the market interest rate goes up,the rate on variable rate loans goes up.

Accepted Answer

A) True 
 B)False

Question 18

Your debt safety ratio

Accepted Answer

A)  does not include your home mortgage payment. 
B)  is acceptable if it stays below 30%. 
C)  need not be calculated for consumer loans. 
D)  is calculated only for credit card debt. 
E)  is a percentage of your gross income. 
A)  does not include your home mortgage payment. 
B)  is acceptable if it stays below 30%. 
C)  need not be calculated for consumer loans. 
D)  is calculated only for credit card debt. 
E)  is a percentage of your gross income.

Question 19

The highest interest rate installment loans are usually made by

Accepted Answer

A)  consumer finance companies. 
B)  commercial banks. 
C)  credit unions. 
D)  savings and loan associations. 
E)  life insurance companies. 
A)  consumer finance companies. 
B)  commercial banks. 
C)  credit unions. 
D)  savings and loan associations. 
E)  life insurance companies.

Question 20

Simple interest on an installment loan is charged only against the initial loan principal.

Accepted Answer

A) True 
 B)False

Calculate the average percentage rate (APR)for an add-on loan with 36 monthly installments.The principal is $4,000;the stated interest rate is 6%.(Show all work. )

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -It is [legal | illegal] for a lender to charge a pre-payment penalty.

The purchase of credit life insurance is highly recommended by most financial planning experts.

Loans from whole life insurance policies are structured so that the interest rate on the loan is set at the time the loan is made.

One can calculate whether to take the lower interest rate or the rebate with a financial calculator.

Credit unions offer some of the most attractive loan terms available.

Generally,collateral for an installment loan may be seized and liquidated by the lender if the borrower has paid the loan in full.

Installment loans are typically repaid in one payment.

An acceleration clause allows the lender to require immediate repayment of the interest due if you miss a payment.

A legal claim that allows credits to liquidate loan collateral is a

____ loans do not have to be repaid until after you graduate from college.

Purchasing credit life or disability insurance protection is usually

Savings and loan associations dominate the consumer loan market.

When credit life or disability insurance protection is required as a condition of a loan,the cost

Credit unions dominate the consumer loan market.

When the market interest rate goes up,the rate on variable rate loans goes up.

Your debt safety ratio

The highest interest rate installment loans are usually made by

Simple interest on an installment loan is charged only against the initial loan principal.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters

Exam 7: Using Consumer Loans

Calculate the average percentage rate (APR)for an add-on loan with 36 monthly installments.The principal is $4,000;the stated interest rate is 6%.(Show all work. )

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -It is [legal | illegal] for a lender to charge a pre-payment penalty.

The purchase of credit life insurance is highly recommended by most financial planning experts.

Loans from whole life insurance policies are structured so that the interest rate on the loan is set at the time the loan is made.

One can calculate whether to take the lower interest rate or the rebate with a financial calculator.

Credit unions offer some of the most attractive loan terms available.

Generally,collateral for an installment loan may be seized and liquidated by the lender if the borrower has paid the loan in full.

Installment loans are typically repaid in one payment.

An acceleration clause allows the lender to require immediate repayment of the interest due if you miss a payment.

A legal claim that allows credits to liquidate loan collateral is a

____ loans do not have to be repaid until after you graduate from college.

Purchasing credit life or disability insurance protection is usually

Savings and loan associations dominate the consumer loan market.

When credit life or disability insurance protection is required as a condition of a loan,the cost

Credit unions dominate the consumer loan market.

When the market interest rate goes up,the rate on variable rate loans goes up.

Your debt safety ratio

The highest interest rate installment loans are usually made by

Simple interest on an installment loan is charged only against the initial loan principal.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters