Installment Loan Quizizz

This is considered the amount of the loan

• Finance Charge

• Installment Price

• Amount Financed

Answer explanation

Finance means loan!!

Amount Financed = Amount of Loan

This is what you are charged in interest when taking out an installment loan

• Finance Charge

• Installment Price

• Amount Financed

Answer explanation

This is the interest on an installment loan, it is now called finance charge, which refers to the charge applied when financing something

7. This is a type of installment loan in which there is a set number of payments to be made.

• Installment Payment

• Closed End Credit

• Open End Credit

Answer explanation

Closed = Set # of payments

6. This is the amount of money you save from paying off an installment loan early.

• Finance Charge

• Interest Refund

• Refund Fraction

Answer explanation

Refund = Money you get back

Interest Refund = Money you get back because you pay less interest

4. This is the type of installment loan in which there is no set number of payments to be made.

• Installment Payment

• Closed End Credit

• Open End Credit

Answer explanation

Open = Not set # of payments

To find the total of installment payments I need to multiply these two things together.

• Amount of Installment Payment

• Down Payment

• Number of Installment Payments

• Amount Financed

You buy a new car for a cash price of $38,997 and put a down payment on it of $6,200. Calculate the amount financed.

• $45,197

• $38,997

• $32,797

Answer explanation

Amount Financed = Cash Price - Down Payment

Amount Financed = $38,997 - $6,200

Amount Financed = $32,797

Find the total of installment payments for a an installment loan that has 72 payments of $678.50.

• 24,868

• $48,852

• 31,995

• $56,402

Answer explanation

Total of Installment Payments = # of payments * amount of payments

Total of Installment Payments = 72 * $678.50

= $48,852

Calculate the Installment Price on a loan that a total of installment payments of $41,372 and had a down payment of $3,875.

• $35,863

• $44,813

• $37,497

• $45,247

Answer explanation

Installment Price = Total of Installment Payments + Down Payment

Installment Price = $41,372 + $3,875

= $45,247

Find the finance charge on an installment price of $9,450 and a cash price of $7,645.

• $17,095

• $1,805

• $2,225

• $11,437

Answer explanation

Finance Charge = Installment Price - Cash Price

Finance Charge = $9,450 - $7,645

= $1,805