AnswersPersonal Finance - EL3403Mortgages and Home Ownership

Mortgages and Home Ownership — Unit test Answers

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Aliyah made a payment in the amount of $47.93. She’ll use the check register to record her transaction. What will be her new balance? Do not use commas in your answer.$

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Answer not available
2
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This table can be used to organize Raj’s credit card balances and payments over 6 months. The annual percentage rate on the card is 18%.Raj’s Credit Card PaymentsMonthBalancePaymentInterest RateInterest Charged1$500$1000.015$6.002$406$500.015 3$361.34$500.015 4$316.01$500.015 5$270$500.015 6$223.30$500.015 What is the amount of total interest charged for the first 6 months?$

Answer not available
3

Fiona wrote a check to the veterinarian for $89.56. She’ll use the check register to record her transaction. What will be her new balance?

Question illustration
$
$2,458.94
$
$2,484.83
$
$2,549.55
$
$2,575.44
4

Which is considered a good credit practice?

A
Use the credit card with the highest interest rate.
B
Make late payments.
C
Pay more than the minimum amount that is due.
D
Borrow more than one can afford to repay.
5

A down payment is usually what percentage of the asking price of a home?

0
0–5 percent
5
5–20 percent
2
20–50 percent
5
50–75 percent
6

The charts show the effect of an interest rate adjustment on an adjustable-rate mortgage.The change in interest rate shown in the charts resulted in

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a
a lower interest rate.
a
a higher principal.
a
a higher monthly payment.
a
a higher number of payments.
7

Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?

J
Jessica is low risk and will pay her outstanding balances on time.
J
Jessica is low risk but will not pay her outstanding balances on time.
J
Jessica is high risk and will pay her outstanding balances on time.
J
Jessica is high risk but will not pay her outstanding balances on time.
8

A mortgage is a legal agreement between a borrower and a

c
city agency.
f
family court judge.
w
wealthy relative.
b
bank.
9

Jessica is trying to get a credit card. She has a credit score of 790. How is Jessica’s lender likely to view this credit score?

A
Jessica is low risk and will pay her outstanding balances on time.
B
Jessica is low risk but will not pay her outstanding balances on time.
C
Jessica is high risk and will pay her outstanding balances on time.
D
Jessica is high risk but will not pay her outstanding balances on time.
10

most likely

p
plan to rent out their homes.
m
must repay the loan in five to ten years.
a
are unwilling to accept any risk in borrowing money.
r
remain in their homes for 30 years or more.
11

Aliyah made a payment in the amount of $47.93. She’ll use the check register to record her transaction. What will be her new balance? Do not use commas in your answer.$

Question illustration
Answer:

1295.02

12

Rita has a credit card that gives a 6% discount on every purchase. The annual percentage rate on the card is 15%. She is purchasing a digital camera for $300.If she purchases the camera and only pays $80 on the first month’s bill, how much will she need to pay off the balance the following month?

A
$199.47
B
$204.53
C
$220.00
D
$222.75
13

Which describes the difference between a personal loan and a credit card?

A
Credit cards offer lump sums of money, while personal loans set a maximum amount a person can borrow.
B
Credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases.
C
Personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow.
D
Personal loans are secured for small purchases, while credit cards are unsecured loans for large amounts.
14

Which information can be found on a person’s credit report? Check all that apply.

A
an unpaid utility bill that has been given to a collection agency
B
the person’s credit rating
C
the person’s yearly income
D
the person’s social security number
E
an inquiry from a bank that requested the person’s credit report
F
the person’s education level
15

Marcus deposited his paycheck in the amount of $625.84. He’ll use the check register to record his transaction. What will be his new balance? Do not use commas in your answer. $

Question illustration
Answer not available
16

Fiona wrote a check to the veterinarian for $89.56. She’ll use the check register to record her transaction. What will be her new balance?

Question illustration
A
$2,458.94
B
$2,484.83
C
$2,549.55
D
$2,575.44
17

The table shows a schedule of the first year of Kamil’s payment plan for a car. Kamil’s Payment Plan for the First YearYearBalanceMonthly PaymentEnd of YearBalance1$13,086.72$363.52$8,724.48 How many years will it take Kamil to pay off the loan?

A
1 year
B
2 years
C
3 years
D
4 years
18

This table can be used to organize Raj’s credit card balances and payments over 6 months. The annual percentage rate on the card is 18%.Raj’s Credit Card PaymentsMonthBalancePaymentInterest RateInterest Charged1$500$1000.015$6.002$406$500.015 3$361.34$500.015 4$316.01$500.015 5$270$500.015 6$223.30$500.015 What is the amount of total interest charged for the first 6 months?$

Answer not available
19

A person’s credit score can range from a low of 300 to a high of what number?

Answer not available
20

A down payment is usually what percentage of the asking price of a home?

A
0–5 percent
B
5–20 percent
C
20–50 percent
D
50–75 percent

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