Financial Responsibility Pt 1

Match the following

• Cost paid to secure a good or service.

• Expense

• Payment received for goods, services, including employment.

• Cost-Benefit Analysis

• Is the cost of the item more than, equal, or less than the benefit that comes from purchasing it.

• Cost Comparison

• Comparing the cost of two or more goods or services to find the best value.

• Budget

• Plan for future spending and saving.

• Income

Match the following

• an initial payment made when something is bought on credit.

• Interest Rate

• the proportion of a loan that is charged as interest to the borrower

• Loan

• The extent to which a person or company is considered suitable to receive financial credit

• Financed

• a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

• Down Payment

• provide funding for (a person or enterprise).

• Creditworthiness

Auto-Loan # 1

Loan Principle = $ 32,000

Down Payment = $ 5,000

Interest rate - 4.2 %

Loan term = 60 months

How much is the monthly payment??

• $500.25

• $499.69

• $592.22

• $425.98

Auto-Loan # 1

Loan Principle = $ 32,000

Down Payment = $ 5,000

Interest rate - 4.2 %

Loan term = 60 months

How much is the interest charged??

• $2981.20

• $3533.28

• $2525.25

• $2268.98

Auto-Loan # 2

Loan Principle = $ 58,000

Down Payment = $ 5,000

Interest rate - 5 %

Loan term = 48 months

How much is the monthly payment??

• $1335.70

• $1258.85

• $1220.55

• $1452.84

Auto-Loan # 2

Loan Principle = $ 58,000

Down Payment = $ 5,000

Interest rate - 5 %

Loan term = 48 months

How much is the total interest charged?

• $6113.55

• $5242.58

• $5112.52

• $5586.52

How does your credit score affect your finance rate?

• Lower the score higher the rate

• Higher the score better the rate

• Lower the score better the rate

• Higher the score higher the rate