Vehicles Test

Front

Why is it important to register a new car?

Back

To ensure it is legally allowed on the road.

Front

What is simple interest?

Back

A method of calculating the interest charge on a loan based on the original principal amount.

Front

How do you calculate simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

What is the formula to calculate the total amount paid on a loan?

Back

Total Amount = Principal + Interest.

Front

What factors can influence the interest rate on an auto loan?

Back

Credit score, income, down payment amount.

Front

What is a 36-month loan?

Back

A loan that is to be paid off in 36 monthly installments.

Front

What is a 60-month loan?

Back

A loan that is to be paid off in 60 monthly installments.

Front

Does a shorter loan term always mean lower total cost?

Back

Not necessarily; it depends on the interest rate and terms.

Front

What is the purpose of an auto loan?

Back

To finance the purchase of a vehicle.

Front

What is a down payment?

Back

An initial payment made when something is bought on credit.