The true statement about an annual percentage rate (APR) is:
It is a simple way to compare all the various elements of different loans.
APR includes not only the interest rate but also any fees or additional costs associated with the loan, providing a more comprehensive measure for comparing different loans.
Which statement is true about an annual percentage rate (APR)?(1 point)
Responses
It is a simple way to compare all the various elements of different loans.
It is a simple way to compare all the various elements of different loans.
It is equal to the interest rate times the principal.
It is equal to the interest rate times the principal.
It is of little interest to the average borrower.
It is of little interest to the average borrower.
It is reduced every time you make a payment.
9 answers
Which statement is true about principal?(1 point)
Responses
It is everything you pay in addition to repaying the amount you borrow.
It is everything you pay in addition to repaying the amount you borrow.
It is a percentage of the amount you borrow over time.
It is a percentage of the amount you borrow over time.
It is a simple way to compare all the various elements of different loans.
It is a simple way to compare all the various elements of different loans.
It is the amount you borrow.
Responses
It is everything you pay in addition to repaying the amount you borrow.
It is everything you pay in addition to repaying the amount you borrow.
It is a percentage of the amount you borrow over time.
It is a percentage of the amount you borrow over time.
It is a simple way to compare all the various elements of different loans.
It is a simple way to compare all the various elements of different loans.
It is the amount you borrow.
The true statement about principal is:
It is the amount you borrow.
It is the amount you borrow.
Which is true of variable-rate loans?(1 point)
Responses
The interest rate can fall below 0.
The interest rate can fall below 0.
The rate can only go down.
The rate can only go down.
The rate can go up or down, depending upon the index it is tied too.
The rate can go up or down, depending upon the index it is tied too.
The rate can only go up.
Responses
The interest rate can fall below 0.
The interest rate can fall below 0.
The rate can only go down.
The rate can only go down.
The rate can go up or down, depending upon the index it is tied too.
The rate can go up or down, depending upon the index it is tied too.
The rate can only go up.
The true statement about variable-rate loans is:
The rate can go up or down, depending upon the index it is tied to.
The rate can go up or down, depending upon the index it is tied to.
What is a credit card’s grace period?(1 point)
Responses
It is the amount of time between the bill being issued and your payment being due.
It is the amount of time between the bill being issued and your payment being due.
It is the period during which the card’s interest rate cannot change.
It is the period during which the card’s interest rate cannot change.
It is the amount of time after a purchase and before it starts accruing interest.
It is the amount of time after a purchase and before it starts accruing interest.
It is the period during which you can return the card and not incur any fees.
Responses
It is the amount of time between the bill being issued and your payment being due.
It is the amount of time between the bill being issued and your payment being due.
It is the period during which the card’s interest rate cannot change.
It is the period during which the card’s interest rate cannot change.
It is the amount of time after a purchase and before it starts accruing interest.
It is the amount of time after a purchase and before it starts accruing interest.
It is the period during which you can return the card and not incur any fees.
The true statement about a credit card’s grace period is:
It is the amount of time after a purchase and before it starts accruing interest.
It is the amount of time after a purchase and before it starts accruing interest.
If you borrow $10,000 over five years, at the end of the five years, what will you have paid?(1 point)
Responses
less than $2,000
less than $2,000
$10,000
$10,000
$2,000
$2,000
more than $10,000
Responses
less than $2,000
less than $2,000
$10,000
$10,000
$2,000
$2,000
more than $10,000
The correct response is:
more than $10,000
This is because, in addition to repaying the principal amount of $10,000, you will also be paying interest on the loan over the five years.
more than $10,000
This is because, in addition to repaying the principal amount of $10,000, you will also be paying interest on the loan over the five years.
1 answer