Chapter 11: Consumer Mathematics 3
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- 1.What is the Simple Interest?
- A.
The interest that is equal to the principal times the rate times the time
- B.
A guideline in which the year is considered to have 360 days
- C.
The use of capital for income or profit
- 2.The use of capital for income or profit
- A.
Banker's Rule
- B.
Investment
- C.
Mortgage
- 3.The method of charging interest on a credit card that is usually in the best interest of the consumer
- A.
Finance Charge
- B.
Closing Costs
- C.
Arg.Daily Bal. Method
- 4.The money that a bank is willing to give you
- A.
Credit
- B.
Principal
- C.
Mortgage
- 5.The amount of the cash that a buyer must prepay on an item in order to receive a loan or mortgage
- A.
Mortgage
- B.
Simple interest
- C.
Down payment
- 6.A list or table that gives the payment number in a loan and the breakdown of how much money is paid to principal and how much to interest for each payment
- A.
Amortization schedule
- B.
Percent
- C.
Principal
- 7.The total amount of money a borrower must pay to use a lender's money
- A.
Fixed Investment
- B.
Finance charge
- C.
Credit
- 8.The type of interest that allows the interest to earn interest
- A.
Compound interesr
- B.
Banker's Rule
- C.
APY
- 9.A type of loan where the interest is paid at the time the borrower receives the loan
- A.
Discount note
- B.
Amortization Schedule
- C.
ARM
- 10.A guideline in which the year is considered to have 360 days
- A.
Fixed Investment
- B.
Principal
- C.
Banker's Rule
- 11.A person other than the borrower who will guatantee the repayment of a loan
- A.
Investment
- B.
Cosigner
- C.
Interest
- 12.A ratio of some number to 100
- A.
Percent
- B.
Interest
- C.
APY
- 13.The difference between the appraised value of a home and the principal balance remaining on the mortgage
- A.
Fixed Investment
- B.
Variable Investment
- C.
Equity
- 14.The primary method used to compute unearnd on an installment loan
- A.
Unpaid balance method
- B.
Actuarial method
- C.
Arg.Daily Bal method
- 15.One percent of the loan mortgage
- A.
Point
- B.
Percent
- C.
APY
- 16.The method of charging interest on a credit card in which interest is only paid on the previous outstanding balance
- A.
Actuarial method
- B.
Arg. daily Bal method
- C.
Unpaid balance method
- 17.A US supreme court decision that specified how partial payments were to be applied to a loan
- A.
US rule
- B.
Banker's Rule
- C.
Partial payment
- 18.The collateral that is pledged by the borrower to the lender that the lender may sell or keep if the borrower defaults on the loan
- A.
Interest
- B.
Sercurity
- C.
Principal
- 19.A long-term loan usually used to purchase a house
- A.
Equity
- B.
Amortization Schedule
- C.
Mortgage
- 20.The simple interest rate that gives the name amount of interest over the same period of time as a compound rate
- A.
ARM
- B.
APY
- C.
APR
- 21.A type of investment in which the principal is guarantee and the interest is computed at a fixed rate
- A.
Fixed Investment
- B.
Variable Investment
- C.
Investment
- 22.The true rate of interest charged for a loan
- A.
ARM
- B.
APR
- C.
APY
- 23.A type of investment, such as stocks, in which the investor has a chance of losing money
- A.
Closing costs
- B.
Fixed investment
- C.
Variable Investment
- 24.The money that is paid by the borrower for the use of the lender's money
- A.
Principal Payment
- B.
Interest
- C.
Credit
- 25.A credit card is the most common type of this loan
- A.
Open -end Installment loan
- B.
Total Installment price
- C.
Down Payment
- 26.A type of mortgage in which the rate of interest can change
- A.
APY
- B.
ARM
- C.
APR
- 27.The cost incurred in acquiring a mortgage, these may include attorney fees, survey costs, appraisal fees, etc...
- A.
Total Installment price
- B.
Finance charge
- C.
Closing costs
- 28.The amount of money initially deposited into an account or the amount of money borrowed from a lender
- A.
Simple Interest
- B.
Principal
- C.
Finance charge
- 29.The interest charged in advance on a discount note
- A.
Bank discount
- B.
Discount note
- C.
Down payment
- 30.The sum of all monthly payments and the down payment
- A.
Closing Costs
- B.
Finance charge
- C.
Total Installment price
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