| Jackie Flynn bought a new boat for $16,000. She put a $3,000 down payment on it. The bank’s loan was for 60 months. Finance charges totaled $4,800. Her monthly payment is: | … |
| The APR represents the: | True effective annual rate of interest charged by seller |
| The finance charge is equal to the total of all monthly payments: | Less amount financed |
| The amount financed equals the cash price plus down payment. | False |
| The average daily balance is equal to the sum of daily balances: | Divided by number of days in billing cycle |
| Today most companies calculate finance charge on their credit card accounts as a percentage of the yearly balance. | False |
| Ruth Sloan bought a new car for $20,000. She put down $6,000 and paid $280 for 60 months. The total finance charge to Ruth is: | $2,800 |
| Revolving charge accounts must be completely paid off by end of the month. | False |
| The U.S. Rule can be applied to open credit payments. | True |
| The Fair Credit and Charge Card Disclosure Act of 1988 is optional advice to credit card companies. | False |
| Which one of the following statements is incorrect? | The Truth in Lending Act regulates interest charges |
| APR cannot by calculated by use of tables. | False |
| The APR represents the stated interest rate. | False |
| The Truth in Lending Act regulates interest charges. | False |
| The Truth in Lending Act requires the APR be accurately stated to nearest 1/4 of 1 percent. | True |
| Amortization is not a payment process. | False |
| Most companies calculate the finance charge on credit card accounts as a percentage of the: | Average daily balance |
| Finance charge equals total of all monthly payments less amount financed. | True |
| Amount financed is equal to: | Cash price less down payment |
| The cost of credit reports is normally included in the amount financed. | True |