Credit Cards Terms
True or False:
Paying your credit card off on time will lower your credit score
False
____________ is the length of time that the money will be borrowed
term
The APR (Annual Percentage Rate) for your credit card is 21%. What would the MONTHLY percentage rate be?
1.75%
What does the P stand for in this equation trying to find the interest.
I = P x R x T
Principal
Who is the villain in “Peter Pan”?
Captain Hook
A ____________ is a plastic card that allows you to borrow money
credit card
_______________ can be any asset worth money, including a house, car, or possession
Collateral
Iris has a balance of $1,340.39 on her credit card account. The bank recently lowered her credit limit to $2,200. What is Iris’ available credit on this account?
$859.61
June wants to buy a car for $5,500. She has a down payment of $1,025. How much will she pay for her car?
$4,475
The first iPhone was released in what year?
2007
A _____________________ is a number that shows how well you handle credit
credit score
A _________________ is the occupant of the property being rented
tenant
What is the name of a person that pays off their credit card debt in full by the end of each month?
Deadbeat
Margaret and Edgar Henry are moving into a new apartment. There is a security deposit of $350 and a pet deposit of $200. The monthly rent is $750. According to their lease, they must pay all deposits and the first and last month’s rent up front. What are the Henry family’s total move-in costs?
$1,300
How many yards are in a mile?
1760 yards
A _________________ is a limit on a line of credit
credit limit
A ___________________ is a payment held by the lessor to cover the costs of potential damage to the property
security deposit
Arnie checked his credit card and learned that the balance was $375.16. He charged a pair of shoes to his account for $83.47. If his credit limit is $500, what is the remaining available credit on this account?
$41.37
Maribel borrowed $4,450 for a one-year term loan. Maribel paid a total of $317.06 in annual interest. What was Maribel’s annual interest rate?
annual interest rate = annual interest amount ÷ principal
7.1%
Which continent covers all four hemispheres of the earth?
Africa
A _______________ is charged if you fail to make at least a minimum payment before the due date
Late Fee
A _______ is a legal agreement giving the lender the right to claim assets of the borrower if necessary to repay a loan
lien
Zimra has a credit card with an APR of 21.4%. If she charges a purchase for $750, what is the estimated amount Zimra will pay in finance charges on that purchase?
finance charge = APR x balance
$160.50
Alvin borrowed $1,050 using the ordinary interest method. He agreed to pay an annual interest rate of 4.85%. He will repay the loan in 2 years. Calculate the amount of interest Alvin will pay.
$101.85
What fast food chain once used the slogan “Think outside the bun”?
Taco Bell