Vocab
a written statement of a consumer's credit history
Credit Report
I=?
P=$1000
R=18%
T=2 years
$360
A scam that uses online pop-up messages or e-mail to deceive you into disclosing personal information is called__________________
Phishing
n= 12 N=12 f=230 P=1100
Find the APR.
38.6%
Drew wants to buy a new stereo system. He finds one for $500 at Stereo City. He withdraws $250 from his account at First National Bank and obtains a loan from his parents for the rest of the amount. The he purchases the stereo. In this scenario, who is the debtor?
Drew
a person who borrows money from others
Debtor
I=$3
P=$50
R=?
T=180 days
12.2%
Credit reports are issued by __________
Credit Bureaus
Cash price is $85 with a down payment of $10 and 8 monthly payments of $11. Find the APR.
46.2%
One way to minimize credit is to _______
For small payments use cash
an unlicensed lender who charges illegally high interest rates
Loan Shark
I=$6
P=?
R=12%
T=3 months
$200
This law requires lenders to fully inform consumers about all costs of a credit purchase before an agreement is signed
The Consumer Credit Protection Act
Find your APR.
n=12
N=9
f=50
P=400
30%
When you buy an item that serves as collateral, you are taking out a ________
Secured Loan
A loan for which the interest rate goes up and down with inflation and other economic conditions
Variable-Rate Loan
If you borrow $900 at 19% for 9 months, how much total interest will you pay?
$128.25
Find the new balance on Adam's credit card statement for June
Previous Balance: $547.98
New Charges: $238.31
Payments or credits: $299.00
Finance Charge: $8.21
495.5
McQueen is buying a new set of tires for $2500. He will pay $125 a month for 2 years. He has a $200 down payment. Find the APR.
58.4%
Amelia is purchasing a new couch for $950. If she can come up with 70% of the purchase price, her sister will lend her the rest of the amount. If she can collect the 70%, what is the amount she will get from her sister?
$285
A request by a business with a "permissible purpose" to check your credit
Credit Inquiry
You take out a loan for $600 with a rate of 10%. It take you a year and a half to pay it off. How much will you pay in total?
$690
If you go over your credit limit or make your payment late, you will likely be charged a what?
Penalty Fee
Your favorite math teacher is buying a new car for $20,000. She is going to make a down payment of 25%. It is going to take four years to pay it off. She will pay $325 a month. Find the APR.
1.6%
If you have an APR of 21%, what is your monthly interest rate?
0.0175