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Amortization and loans review Flashcards | StudBud
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Amortization and loans review
Amortization and loans review
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Financial literacy grade 11
Flashcards
19 cards
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Practice quiz
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Questions
19
Answers
1
Which of the following is generally TRUE about someone with no credit history? (choose one)
able to buy a home with an FHA mortgage loan.
They may require a cosigner on a home or car loan.
2
A 15 year mortgage has higher ___ but is ___ overall than a 30 year mortgage.
monthly payments...less expensive
Interest paid ....more expensive
3
Which of the following lets you pay a daily fee to use a car for a few days or weeks?
Car Rental
Auto Lease
4
Which of the following people would you recommend to buy a house and stop renting?
V, who has savings and a steady job she loves.
Dan, who has savings but wants to move next year.
Moaz, wants to spend the next year living in Montreal
Maryam, who is in nursing school and has a great roommate.
5
A ___ is initial money paid when buying something with a loan.
principal
balance
down payment
6
What is the ending balance in month 5 of the loan below?
$176.10
$1297.20
$1121.09
$199,129.28
7
Disadvantage to owning a home includes
building equity.
.
the ability to move easily
8
The amount left to pay on a loan is the _________.
principal paid
Outstanding balance
down payment
interest paid
9
a typical mortgage loan period is 30 years
False
True
10
"Equity" in a car or home refers to...
the interest rate of the loan.
the down payment of the loan.
the value of the car or home that you own.
11
The typical mortgage interest rate is
less than 1%
over 20%
13-15%
3-5%
12
What is the monthly payment in the amortization table below?
$1297.20
$200,000
$172.20
$1125
13
__ breaks down a loan payment into principal and interest, keeping the monthly payment the same
Amortization
Mortgage
Balance
14
Which of the following is NOT a type of loan?
apartment rental
mortgage
credit card
car loan
15
___ a car means to pay money every month for 2-3 years to use a car. You will NOT own the car.
Renting
Leasing
16
In the first few years of an amortized mortgage, most of your monthly payments go towards ___
principal
interest
17
Which is true of amortization?
The payments lower each month.
Each month, more $ goes toward principal, less to interest
The payments grow each month.
Car rental uses amortization.
18
Which of the following is TRUE about buying a home?
It is ALWAYS better to buy than rent.
It is ALWAYS cheaper to rent.
It requires a lot of cash upfront.
19
A/An ______ is a special mortgage for first-time home buyers or those with a low down payment.
Federal Housing Administration loan
student loan
