Unit 6 End of Unit review

A credit card is a secured loan that is not backed by collateral.

• True

• False

When we took notes, what was the average monthly used car payment?

• $700

• $525

• $450

• $575

Which of the following is a disadvantage of having credit?

• You pay interest

• You do not have to carry cash

• you can consolidate bills into one payment

• You have access to money in case of an emergency.

Suppose that we bought this with a Visa credit card that has an interest rate of 14.99%. If we wanted to pay it off in 4 years, how much would we need to pay each month?

• $1,015.64

• $9,411.73

• $760.42

• $983.45

If we put this on our Best Buy card (which has an APR of 24.99%) how much would we end up paying if we paid it off in two years?

• $5,763.60

• $240.15

• $8,645.15

• $5,273.60

Let's start a vigilante justice group (will come up with a cool name later though). Our first purhase will be this police drone so we can have eyes in the sky. If we put this on a MasterCard that has an interest rate of 7.99% (we got a vigilante discount), how much interest would we end up paying if we paid it off in five years?

• $70,545

• $12,545

• $14,845

• $11,955

• $13,745

Time to hit the road in style! If we wanted to purchase this, but had to put a down payment of 7.65%, how much would we be financing?

• $377,711.50

• $31,288.50

• $384,519.50

• $372,900.50

Suppose that we finance at a 4.99% interest rate after putting a down payment of $3,500. If we pay if off in three years, how much will we end up paying for it?

• $29,018.16

• $32,518.16

• $34,819.40

• $33,517.35