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 |