# Chapter 11: Consumer Mathematics 3

30 Questions | Total Attempts: 51  Settings  ^^

• 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

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