Financial Algebra B Final

Front

What are the advantages of having good credit?

Back

Lower interest rates on loans, higher chances of loan approval, access to better credit card offers, ability to negotiate better terms on loans, and improved financial opportunities.

Front

What is the mortgage amount for a condominium priced at $123,000 with a $15,000 down payment?

Back

$108,000

Front

Convert 55% to a decimal.

Back

0.55

Front

What is the difference between a credit card and a debit card?

Back

A credit card allows you to borrow money from the bank to make purchases, while a debit card allows you to spend money directly from your bank account.

Front

Calculate the tax owed for an individual making $75,000 with the following tax rates: 10% for income up to $9,875, 12% for income between $9,876 and $40,125, and 22% for income above $40,125.

Back

$10,451.25

Front

What is a mortgage?

Back

A mortgage is a loan specifically used to purchase real estate, where the property serves as collateral.

Front

Define interest rate.

Back

The interest rate is the percentage of a loan amount that a lender charges as interest to the borrower, typically expressed on an annual basis.

Front

What is the purpose of a credit score?

Back

A credit score is a numerical representation of a person's creditworthiness, used by lenders to assess the risk of lending money.

Front

Explain the term 'down payment'.

Back

A down payment is an initial payment made when purchasing a big-ticket item, such as a home, which reduces the amount of the loan.

Front

What is the difference between fixed-rate and adjustable-rate mortgages?

Back

A fixed-rate mortgage has a constant interest rate throughout the life of the loan, while an adjustable-rate mortgage has an interest rate that may change at specified times.