Car Loan

When getting a car loan you will want to get the highest or the lowest interest rate?

• lowest

• highest

The length of the loan for Baker is ...

• 16%

• three years

• 36 payments

• in effect

What are the three main factors that affect car loan interest?

• Loan amount, interest rate, and loan term length.

• Credit score, down payment, and loan type.

• Loan amount, credit score, and down payment.

• Monthly payment, interest rate, and loan type.

What happens to the interest paid as you pay down a car loan?

• The interest rate increases.

• The interest amount remains the same.

• You pay less interest over time.

• You pay more interest over time.

What is a down payment on a car purchase?

• A fee for processing the car loan

• The total cost of the car divided by the number of months in the loan term

• An upfront payment that reduces the amount financed

• A refundable security deposit in case of damage to the car

If you finance a car for 60 months at a 3% interest rate, approximately how much will your monthly payment be?

• $475

• $500

• $449

• $400

How much total interest will you pay on a $25,000 car loan at a 3% interest rate over 5 years?

• $1,500

• $2,500

• $1,953

• $2,000

What is the total repayment amount for a $25,000 car loan at a 3% interest rate over 5 years?

• $26,000

• $27,500

• $28,000

• $26,953

What is the primary purpose of a car loan?

• To purchase a car without paying the full amount upfront

• To invest in the stock market

• To save money for future expenses

• To pay for car insurance

Which of the following is a common requirement for obtaining a car loan?

• Having a high school diploma

• Being at least 18 years old

• Owning a home

• Having a driver's license