Unsecured lines of credit
If a borrower cannot pay back a home mortgage, the lender will
Which statements describe credit cards? Choose four correct answers.They require monthly minimum payments.They use revolving lines of credit.They can be used to buy homes.They may be helpful for emergencies.They do not require borrowers to make payments.They can be used to build credit if used responsibly.
What affects how much a borrower must pay on a loan each month? Choose three correct answers.the amount of collateral the lender hasthe amount of money borrowedthe length of time given to repaythe value of the lender’s assetsthe interest rate of the loanthe number of loans the lender has made
Compound interest is interest paid on the loan amountminus the length of the loan.minus any interest that has accumulated.plus any interest that has accumulated.plus the length of the loan.
Abbey wants to borrow $5,000 for one year. At the end of the year, she is required to pay the lender the amount borrowed plus interest. Abbey pays the lender $5,450. How much interest did Abbey pay?
How can borrowers use credit wisely? Choose three correct answers.by applying for additional creditby creating a budgetby identifying their wants and needsby increasing their credit card useby making minimum credit card paymentsby saving money and paying cash
Carrying debt requires making monthly payments, which canmake it easier to balance a budget.increase the money available to spend on other things.reduce stress about financial planning.decrease the money available to spend on other things.
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