Debt & Loans

Spreading payments out over a set amount of time is called...

• Interest rates
• Down payment
• Amortization
• Mortgage

The fee you pay for borrowing money is called...

• Interest rate
• Term of Loan
• Amortization
• Principal

The large amount of money you pay before you take out a loan is called...

• Annual percentage rate (APR)
• Down payment
• Amortization
• Principal

I bought a car for $7,000. I took out a loan for $5,000 and had a down payment of $2,000. The loan is a 3 year loan and my interest rate is 3.6%. In this example, the $5,000 represents...

• Term of Loan
• Down payment
• Amortization
• Principal

What is the guideline for how much student loan debt is the "okay" amount?

• 2-3 x your annual income
• 15% of your monthly income
• Total loans are less than your starting annual income
• 50% of your starting annual salary

True or False: A grace period is when you don't have to make payments on student loans. This occurs right after you graduate college.

• True
• False

How long is the grace period after you graduate?

• 3 months
• 6 months
• 12 months
• Until you get your first job

What is the current total balance on this credit card?

• $49.00
• $2,389.42
• $2,463.98
• $20,000

To use our credit card wisely, what should I pay off this month?

• Minimum payment
• Complete balance
• Interest

What amount should I pay off this month if I am using my credit card *wisely* like you learned in Personal Finance?

• $49.00
• $2,389.42
• $2,463.98
• $20,000