Question 1

The daily balance is the previous balance plus cash advances plus purchases minus any payments.

Accepted Answer

A) True 
 B)False

Question 2

The APR represents the stated interest rate.

Accepted Answer

A) True 
 B)False

Question 3

Average daily balance is equal to sum of daily balances divided by number of days in the billing cycle.

Accepted Answer

A) True 
 B)False

Question 4

The average daily balance is the same as the daily balance.

Accepted Answer

A) True 
 B)False

Question 5

Given a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

Accepted Answer

A) $50,236.80 
B) $5,023.68 
C) $545.76 
D) $54,576 
E) None of these 
A) $50,236.80 
B) $5,023.68 
C) $545.76 
D) $54,576 
E) None of these

Question 6

Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% for 25 years. Her yearly payments are:

Accepted Answer

A) $1,776 
B) $9,932.16 
C) $12,415.20 
D) $9,329.61 
E) None of these 
A) $1,776 
B) $9,932.16 
C) $12,415.20 
D) $9,329.61 
E) None of these

Question 7

APR cannot by calculated by use of tables.

Accepted Answer

A) True 
 B)False

Question 8

The Truth in Lending Act regulates interest charges.

Accepted Answer

A) True 
 B)False

Question 9

A condo in Orange Beach, Alabama, listed for $1.4 million with 20% down and financing at 5% for 30 years. What would the monthly payment be?

Accepted Answer

A) $7,518 
B) $6,014.40 
C) $6,041.20 
D) $7,815.00 
E) None of these 
A) $7,518 
B) $6,014.40 
C) $6,041.20 
D) $7,815.00 
E) None of these

Question 10

The amount financed equals the cash price plus the down payment.

Accepted Answer

A) True 
 B)False

Question 11

The finance charge is equal to the total of all monthly payments:

Accepted Answer

A) Plus amount financed 
B) Minus amount financed 
C) Divided by amount financed 
D) Multiplied by amount financed 
E) None of these 
A) Plus amount financed 
B) Minus amount financed 
C) Divided by amount financed 
D) Multiplied by amount financed 
E) None of these

Question 12

The APR represents the:

Accepted Answer

A) Stated rate of interest 
B) True effective quarterly interest rate charged by seller 
C) True effective annual rate of interest charged by buyer 
D) True effective annual rate of interest charged by seller 
E) None of these 
A) Stated rate of interest 
B) True effective quarterly interest rate charged by seller 
C) True effective annual rate of interest charged by buyer 
D) True effective annual rate of interest charged by seller 
E) None of these

Question 13

Open credit in a revolving charge plan results in:

Accepted Answer

A) One purchase per month 
B) The U.S. Rule being applied to each purchase 
C) As many cash purchases till credit limit is reached 
D) As many charged purchases till credit limit is reached 
E) None of these 
A) One purchase per month 
B) The U.S. Rule being applied to each purchase 
C) As many cash purchases till credit limit is reached 
D) As many charged purchases till credit limit is reached 
E) None of these

Question 14

Dan Miller bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid $390 monthly for 70 months. The total finance charge was:

Accepted Answer

A) $13,300 
B) $5,300 
C) $11,300 
D) $27,300 
E) None of these 
A) $13,300 
B) $5,300 
C) $11,300 
D) $27,300 
E) None of these

Question 15

A billing cycle is always 30 or 31 days.

Accepted Answer

A) True 
 B)False

Question 16

Justin Chan bought a Scion car for a price of $8,200, putting down $800 and financing the remainder with 60 monthly payments of $179.99. The APR by table lookup is (use the tables in the handbook):

Accepted Answer

A) Close to 15% 
B) Close to 14% 
C) Close to 13 ½% 
D) Between 16.00 and 16.25% 
E) None of these 
A) Close to 15% 
B) Close to 14% 
C) Close to 13 ½% 
D) Between 16.00 and 16.25% 
E) None of these

Question 17

Calculating APR by table lookup requires that the total amount financed be divided by the interest charge and then multiplied by 100.

Accepted Answer

A) True 
 B)False

Question 18

Given: 
$140.10 per month; cash price $5,600; down payment $0
Cash or trade months with bank-approved credit; amount financed $5,600
Finance charge $2,806
Total payments $8,406
(Use the tables in the handbook.) The APR by table lookup is:

Accepted Answer

A) 17.25% - 17.50 % 
B) 17.00 % 
C) 16.75 % 
D) 16.50 % 
E) None of these 
A) 17.25% - 17.50 % 
B) 17.00 % 
C) 16.75 % 
D) 16.50 % 
E) None of these

The daily balance is the previous balance plus cash advances plus purchases minus any payments.

The APR represents the stated interest rate.

Average daily balance is equal to sum of daily balances divided by number of days in the billing cycle.

The average daily balance is the same as the daily balance.

Given a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% for 25 years. Her yearly payments are:

APR cannot by calculated by use of tables.

The Truth in Lending Act regulates interest charges.

A condo in Orange Beach, Alabama, listed for $1.4 million with 20% down and financing at 5% for 30 years. What would the monthly payment be?

The amount financed equals the cash price plus the down payment.

The finance charge is equal to the total of all monthly payments:

The APR represents the:

Open credit in a revolving charge plan results in:

Dan Miller bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid $390 monthly for 70 months. The total finance charge was:

A billing cycle is always 30 or 31 days.

Justin Chan bought a Scion car for a price of $8,200, putting down $800 and financing the remainder with 60 monthly payments of $179.99. The APR by table lookup is (use the tables in the handbook):

Calculating APR by table lookup requires that the total amount financed be divided by the interest charge and then multiplied by 100.

Given: $140.10 per month; cash price $5,600; down payment $0 Cash or trade months with bank-approved credit; amount financed $5,600 Finance charge $2,806 Total payments $8,406 (Use the tables in the handbook.) The APR by table lookup is:

Whole Number: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How to Approach to Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Appreciation

Inventory and Overhead

Sales Excise and Property Taxes

Life, Fire and Auto Insurance

Stocks, Bonds and Mutual Funds

Business Statistics

Filters

Exam 14: Installment Buying

The daily balance is the previous balance plus cash advances plus purchases minus any payments.

The APR represents the stated interest rate.

Average daily balance is equal to sum of daily balances divided by number of days in the billing cycle.

The average daily balance is the same as the daily balance.

Given a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% for 25 years. Her yearly payments are:

APR cannot by calculated by use of tables.

The Truth in Lending Act regulates interest charges.

A condo in Orange Beach, Alabama, listed for $1.4 million with 20% down and financing at 5% for 30 years. What would the monthly payment be?

The amount financed equals the cash price plus the down payment.

The finance charge is equal to the total of all monthly payments:

The APR represents the:

Open credit in a revolving charge plan results in:

Dan Miller bought a new Toyota truck for $28,000. Dan made a down payment of $6,000 and paid $390 monthly for 70 months. The total finance charge was:

A billing cycle is always 30 or 31 days.

Justin Chan bought a Scion car for a price of $8,200, putting down $800 and financing the remainder with 60 monthly payments of $179.99. The APR by table lookup is (use the tables in the handbook):

Calculating APR by table lookup requires that the total amount financed be divided by the interest charge and then multiplied by 100.

Given: $140.10 per month; cash price $5,600; down payment $0 Cash or trade months with bank-approved credit; amount financed $5,600 Finance charge $2,806 Total payments $8,406 (Use the tables in the handbook.) The APR by table lookup is:

Whole Number: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How to Approach to Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Appreciation

Inventory and Overhead

Sales Excise and Property Taxes

Life, Fire and Auto Insurance

Stocks, Bonds and Mutual Funds

Business Statistics

Filters