Credit Review Math $3,000 $600

Credit Review

Math 1. Calculate the simple interest on a loan of $10,000 over 5 years at 6% interest. $3,000

2. Calculate the simple interest on a loan of $2,000 over 10 years at 3% interest. $600

3. Calculate the compound interest on a loan of $20,000 over 3 years at 5% interest. $3,229.44

4. Calculate the compound interest on a loan of $6,000 over 10 years at 9% interest. $8,708.14

5. Calculate the monthly payment on a loan of $20,000 over 5 years at 6% interest. $386.66

6. Calculate the monthly payment, and total interest paid over the life of the loan for a loan with principal of $10,000 over 7 years at 3% interest. $132.13, $1,098.92

7. Calculate the credit utilization percentage for someone who has a total credit limit of $30,000 and a current balance of $12,000. 40%

8. Calculate the credit card interest on the following credit card that has a 12% APR using each method:

Balance June 1: $5,000

Charged $500 on June 5th

Paid $200 on June 15th

Previous Balance Method

Adjusted Balance Method

Average Daily Balance Method

$50

$53

$53.17

Content

1. List two situations where your credit would affect you. Renting an apartment, buying a house, buying a car, getting a credit card, getting a job, insurance, getting utilities.

2. List all 5 factors that make up your credit score, in order from largest impact to least impact. Payment history 35%, amount owed 30%, length of credit history 15%, credit mix 10%, new credit 10%

3. Determine whether each of the following would increase or decrease your credit score a. Open a new credit card + b. Pay a car payment more than 30 days late c. Increase your limit on a credit card + d. Close an old credit card account e. Pay off your entire credit card balance +

4. What are the 5 C's of credit? Character, Capital, Capacity, Collateral, Conditions

5. Which type of account would be considered "worse" for your credit score, an education loan or a credit card? Credit Card

6. How many credit reports are you allowed to request for free annually? 3

7. List one benefit of having a good credit score and one drawback of having a bad credit score. + get loans, able to rent, better terms on credit - denied loans, denied apartments, worse terms

8. What do you call the period of time you are granted to pay your bill before interest is charged on purchases made on a credit card? Grace period

9. What is the difference between secured debt and unsecured debt? Secured has collateral the lender has rights to, unsecured has no collateral

10. What is the difference between credit with a fixed interest rate and credit with a variable interest rate? Fixed interest rate will remain the same, variable will change

11. Give one example of revolving credit and one example of installment credit. Revolving ? Credit card, store credit Installment ? Car loan, mortgage, school loan

12. The maximum amount you are allowed to charge on a credit card is known as what? Credit Limit

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download