Consumer Reports (www.consumerreports.org) is an organization dedicated to credit counseling.Answer: fa...
Before beginning to search for car loans it is a good idea for people to review their __________.
Before beginning to search for car loans it is a good idea for people to review their __________.Answer: credit rep...
A used car owner is the first person contacted when something is recalled and even has legal recourse if he or she encounters a problem that the automobile dealer or manufacturer is unable to resolve.
A used car owner is the first person contacted when something is recalled and even has legal recourse if he or she encounters a problem that the automobile...
There are no reputable online lenders that offer car loans.
There are no reputable online lenders that offer car loans.Answer: fa...
Automobile dealers typically:
Automobile dealers typically:Answer: Shop around based on the customer's credit score for the best deal on financ...
________ is a just a financial term that means equal payments at equal time intervals.
________ is a just a financial term that means equal payments at equal time intervals.Answer: annu...
Waiting to start investing significantly reduces the amount of money available later on.
Waiting to start investing significantly reduces the amount of money available later on.Answer: t...
The present value of an annuity allows easy calculation of what a series of regular payments to be received in the future is worth today.
The present value of an annuity allows easy calculation of what a series of regular payments to be received in the future is worth today.Answer: ...
The future value of a lump sum is used to calculate what a future dollar amount is worth today.
The future value of a lump sum is used to calculate what a future dollar amount is worth today.Answer: fa...
Annuity is a just a financial term that means equal payments at equal time intervals.
Annuity is a just a financial term that means equal payments at equal time intervals.Answer: t...
The present value of an annuity calculates how much a regular series of payments will be worth at some point in the future.
The present value of an annuity calculates how much a regular series of payments will be worth at some point in the future.Answer: fa...
The present value of a lump sum is used to calculate what a future dollar amount is worth today.
The present value of a lump sum is used to calculate what a future dollar amount is worth today.Answer: t...
By not understanding the basic concept of the time value of money (TVM) people make poor financial decisions all the time.
By not understanding the basic concept of the time value of money (TVM) people make poor financial decisions all the time.Answer: t...
Budgeting is the power of the time value of money.
Budgeting is the power of the time value of money.Answer: fa...
There is no difference between a financial calculator and any other calculator.
There is no difference between a financial calculator and any other calculator.Answer: fa...
A(n) __________ is simply the same amount of money invested or paid on a regular schedule, such as weekly, monthly, or annually.
A(n) __________ is simply the same amount of money invested or paid on a regular schedule, such as weekly, monthly, or annually.Answer: annu...
In 1992 Robert could buy a Super Sugar Deluxe chocolate candy bar for $1. Today in 2012 he pays $2.50 to buy a new and improved Extra Super Sugar Deluxe chocolate candy bar. What inflation rate caused Robert's chocolate habit to increase by $1.50 over the last 20 years?
In 1992 Robert could buy a Super Sugar Deluxe chocolate candy bar for $1. Today in 2012 he pays $2.50 to buy a new and improved Extra Super Sugar Deluxe...
A lot of different financial calculators are available to use in time value of money calculations.
A lot of different financial calculators are available to use in time value of money calculations.Answer: t...
Understanding time value of money is not necessary to making good financial decisions.
Understanding time value of money is not necessary to making good financial decisions.Answer: fa...
To answer any time value of money question, at least three of the five pieces of information must be known.
To answer any time value of money question, at least three of the five pieces of information must be known.Answer: t...
No understanding of time value of money or a financial calculator is necessary to improve financial capability.
No understanding of time value of money or a financial calculator is necessary to improve financial capability.Answer: fa...
Money stuffed in a mattress is not subject to the time value of money.
Money stuffed in a mattress is not subject to the time value of money.Answer: fa...
The concept of time value of money (TVM) leads to poor financial decisions all the time.
The concept of time value of money (TVM) leads to poor financial decisions all the time.Answer: fa...
The future value of an annuity calculates how much a regular series of payments will be worth at some point in the future.
The future value of an annuity calculates how much a regular series of payments will be worth at some point in the future.Answer: t...
Only one financial calculator is available to use in time value of money calculations.
Only one financial calculator is available to use in time value of money calculations.Answer: fa...
In 1992 Robert could buy a Super Sugar Deluxe chocolate candy bar for $1. Today in 2012 he pays $2.50 to buy a new and improved Extra Super Sugar Deluxe chocolate candy bar. What inflation rate caused Robert's chocolate habit to increase by $1.50 over the last 20 years?
In 1992 Robert could buy a Super Sugar Deluxe chocolate candy bar for $1. Today in 2012 he pays $2.50 to buy a new and improved Extra Super Sugar Deluxe...
To answer any time value of money question, at least __________ of the five pieces of information must be known.
To answer any time value of money question, at least __________ of the five pieces of information must be known.Answer: th...
Although there are many different kinds of time value of money questions, there are only four types of time value of money problems that are important for most people to understand.
Although there are many different kinds of time value of money questions, there are only four types of time value of money problems that are important...
A full understanding of time value of money and a simple financial calculator greatly improve financial capability.
A full understanding of time value of money and a simple financial calculator greatly improve financial capability.Answer: t...
Robert stuffed all of his savings dollars into his mattress 15 years ago. He put $8,500 into his bedding because he did not trust any savings or investment accounts. Average inflation for the past 15 years was 3.25%. How much money does Robert need in his mattress today to have the same purchasing power that he had 15 years ago?
Robert stuffed all of his savings dollars into his mattress 15 years ago. He put $8,500 into his bedding because he did not trust any savings or investment...
The question, ?How much money did Grandma put into an account in the beginning?? implies a one-time deposit.
The question, ?How much money did Grandma put into an account in the beginning?? implies a one-time deposit.Answer: t...
Your mom needs to borrow grocery money from you to feed you and your eight brothers and sisters. You agree to lend her the money at 12% interest compounded annually. She agrees and tells you she can pay you $300 in one year, $400 in two years, and $200 in three years. How much are you going to lend her?
Your mom needs to borrow grocery money from you to feed you and your eight brothers and sisters. You agree to lend her the money at 12% interest compounded...
Suppose that I am trying to borrow money from you to finance my business. And suppose that I promise to repay you in two installments, one payment in two years of $5,000 and one payment in four years for $10,000. If your opportunity cost of funds is 10%, how much are you willing to lend me?
Suppose that I am trying to borrow money from you to finance my business. And suppose that I promise to repay you in two installments, one payment in...
Understanding time value of money is fundamental to making good financial decisions.
Understanding time value of money is fundamental to making good financial decisions.Answer: t...
You found a bank that will pay you 10% interest compounded semiannually. Your current bank pays interest compounded annually. You know from your finance class at ECU that this is a better deal than what you currently have and open a new account with $500. What is the difference earned between the two accounts at the end of 5 years?
You found a bank that will pay you 10% interest compounded semiannually. Your current bank pays interest compounded annually. You know from your finance...
How much must you deposit in an account today so that you have a balance of $1,000 at the end of five years if interest on the account is 4%, compounded quarterly?
How much must you deposit in an account today so that you have a balance of $1,000 at the end of five years if interest on the account is 4%, compounded...
If I deposit $200 in an account that pays 5% interest, compounded annually, what will be the balance in the account at the end of ten years if I make no withdrawals?
If I deposit $200 in an account that pays 5% interest, compounded annually, what will be the balance in the account at the end of ten years if I make...
In 1950, Jack-in-the-Box hamburger cost $0.24. In 1994, a Jack-in-the-Box hamburger cost $2.79. What is the effective annual increase in the price of a Jack-in-the-Box hamburger from 1950 to 1994?
In 1950, Jack-in-the-Box hamburger cost $0.24. In 1994, a Jack-in-the-Box hamburger cost $2.79. What is the effective annual increase in the price of...
You need $12,000 at the end of 5 years to use as a down payment on a beachfront lot in Hatteras, NC. You found a Vanguard Money Market account that pays 10% compounded annually. How much do you need to deposit each year to reach your goal?
You need $12,000 at the end of 5 years to use as a down payment on a beachfront lot in Hatteras, NC. You found a Vanguard Money Market account that pays...
Consider two investment opportunities, Tweedle Dee and Tweedle Dum. Tweedle Dee pays interest at the rate of 12% per year, compounded monthly. Tweedle Dum pays interest at the rate of 11.5% per year, compounded daily. Which investment is better?
Consider two investment opportunities, Tweedle Dee and Tweedle Dum. Tweedle Dee pays interest at the rate of 12% per year, compounded monthly. Tweedle...
What is the present value of $400 in annual deposits into an account paying 8% interest over the next 10 years?
What is the present value of $400 in annual deposits into an account paying 8% interest over the next 10 years?Answer: $2684...
If you deposit $1,000 each year, starting the end of first year, in an account that pays 10% interest per year, compounded annually, what will be the balance in the account after you have made ten payments, assuming you make no withdrawals from the account?
If you deposit $1,000 each year, starting the end of first year, in an account that pays 10% interest per year, compounded annually, what will be the...
If you lend your younger brother $500 for a tattoo of "ECU" across the middle of his forehead and he agrees to pay you back in five years at an annually compounded rate of 10%, how much will you collect at the end of year 5?
If you lend your younger brother $500 for a tattoo of "ECU" across the middle of his forehead and he agrees to pay you back in five years at an annually...
What is the FV of $100 deposited each month at 12% interest for 5 years?
What is the FV of $100 deposited each month at 12% interest for 5 years?Answer: $8...
What is the present value of $300 received at the end of year 1, $400 received at the end of year 2, and $200 received at the end of year 3, assuming an interest rate of 12%?
What is the present value of $300 received at the end of year 1, $400 received at the end of year 2, and $200 received at the end of year 3, assuming...
Your 25-year old younger sister started smoking. She is currently paying $24.00 per carton per week. You explain to her that this is $1248 per year ($24 x 52). She says big deal. You then tell her that if she were to save that same amount and invest it in the stock market, she would have a significant amount of money to retire when she turns 65. Your sister wants to know how much she would have. You know that over the long-term, the stock market has returned 12% interest compounded annually. You tell your sister that if she stops smoking she will have_________ when she retires.
Your 25-year old younger sister started smoking. She is currently paying $24.00 per carton per week. You explain to her that this is $1248 per year ($24...
If I invest $100 today in an account that earns 10% per year, compounded semi-annually, how much will I have in this account at the end of twenty years if I make no withdrawals?
If I invest $100 today in an account that earns 10% per year, compounded semi-annually, how much will I have in this account at the end of twenty years...
The Cost U Loan Company is willing to lend you $1,000 today. The loan is to be paid off in twenty equal annual installments of $100 each, beginning one year from today. What is the interest rate from Cost U Loan Company?
The Cost U Loan Company is willing to lend you $1,000 today. The loan is to be paid off in twenty equal annual installments of $100 each, beginning one...
If you lend your roommate $50 to go out on Friday night and ask him to pay you back with simple interest in 4 years at 10%, how much will he pay you back?
If you lend your roommate $50 to go out on Friday night and ask him to pay you back with simple interest in 4 years at 10%, how much will he pay you ...
What is the present value of $800 received at the end of year six, assuming a 7% interest rate?
What is the present value of $800 received at the end of year six, assuming a 7% interest rate?Answer: $533...
What is the future value of $500 deposited today at 10% for 5 years?
What is the future value of $500 deposited today at 10% for 5 years?Answer: $805...
Your best friend has written you an IOU for last nights bar tab agreeing to pay you $800 at the end of 6 years at the same interest rate you now earn on your savings account. You currently are earning 7% interest compounded annually. What was your friends bar tab?
Your best friend has written you an IOU for last nights bar tab agreeing to pay you $800 at the end of 6 years at the same interest rate you now earn...
You found a bank that will pay you 10% interest compounded semiannually. Your current bank pays interest compounded annually. You know from your finance class at ECU that this is a better deal than what you currently have and open a new account with $500. What is the difference earned between the two accounts at the end of 5 years?
You found a bank that will pay you 10% interest compounded semiannually. Your current bank pays interest compounded annually. You know from your finance...
How much must you deposit in an account today so that you have a balance of $1,000 at the end of five years if interest on the account is 4%, compounded quarterly?
How much must you deposit in an account today so that you have a balance of $1,000 at the end of five years if interest on the account is 4%, compounded...
What is the future value of $200 in annual deposits into an account paying 6% interest over the next 10 years?
What is the future value of $200 in annual deposits into an account paying 6% interest over the next 10 years?Answer: $2636...
Information gathered for credit reports come from credit and banking agencies voluntarily reporting information about credit habits to credit reporting agencies.
Information gathered for credit reports come from credit and banking agencies voluntarily reporting information about credit habits to credit reporting...
Charles has worked as an instructor at a local community college for the past 12 years. He is a very good teacher and earns a good salary. He has a modest home and a nice car. Although he always has enough money in his account, he is often late making his mortgage and car payments. He does not budget well and does not pay attention to due dates. Recently he was denied when he applied for a credit card. What aspect of Charles' credit card application was the lender considering when it declined to give Charles a credit card?
Charles has worked as an instructor at a local community college for the past 12 years. He is a very good teacher and earns a good salary. He has a modest...
________ is the availability of borrowed money.
________ is the availability of borrowed money.Answer: cre...
When talking about credit scores it is common to hear the term budget.
When talking about credit scores it is common to hear the term budget.Answer: fa...
Creditors and collection agencies are not allowed to make outrageous threats, call neighbors or family, and cannot harass by telephone or in-person if the __________ sends a certified letter stating such.
Creditors and collection agencies are not allowed to make outrageous threats, call neighbors or family, and cannot harass by telephone or in-person if...
When talking about credit scores it is common to hear the term FICO.
When talking about credit scores it is common to hear the term FICO.Answer: t...
Character is not one of the five C's of credit.
Character is not one of the five C's of credit.Answer: fa...
Using a home equity loan to pay off several credit cards eliminates the amount owed.
Using a home equity loan to pay off several credit cards eliminates the amount owed.Answer: fa...
Car loan payments can be one of those budget busters that greatly reduce the amount of money left over to spend on other things like vacations, entertainment, and even savings or retirement.
Car loan payments can be one of those budget busters that greatly reduce the amount of money left over to spend on other things like vacations, entertainment,...
A credit card is a huge convenience, but for many people makes it extremely easy to overspend.
A credit card is a huge convenience, but for many people makes it extremely easy to overspend.Answer: t...
A __________ loan is generally unsecured, which means unlike a mortgage or a car loan there is not an asset attached directly to the loan as security.
A __________ loan is generally unsecured, which means unlike a mortgage or a car loan there is not an asset attached directly to the loan as security...
A car loan is generally unsecured, which means unlike a mortgage there is not an asset attached directly to the loan as security.
A car loan is generally unsecured, which means unlike a mortgage there is not an asset attached directly to the loan as security.Answer: fa...
Information gathered for __________ reports come from credit and banking agencies voluntarily reporting information about credit habits to credit reporting agencies.
Information gathered for __________ reports come from credit and banking agencies voluntarily reporting information about credit habits to credit reporting...
New credit represents 10% of a credit score.
New credit represents 10% of a credit score.Answer: t...
Lenders want to make sure borrowers have the __________ to repay their loans and the willingness to use their resources to do so.
Lenders want to make sure borrowers have the __________ to repay their loans and the willingness to use their resources to do so.Answer: abil...
_________ from the different credit reporting agencies may look somewhat different from each other.
_________ from the different credit reporting agencies may look somewhat different from each other.Answer: credit repo...
It is expected that interest rates for consumer loans will be higher than car loans, mortgages, or student loans.
It is expected that interest rates for consumer loans will be higher than car loans, mortgages, or student loans.Answer: t...
A mix of different types of credit is good for increasing a person's credit score.
A mix of different types of credit is good for increasing a person's credit score.Answer: t...
An accurate definition of consumer loans is any loan to a consumer which includes mortgages, car loans and credit cards.
An accurate definition of consumer loans is any loan to a consumer which includes mortgages, car loans and credit cards.Answer: t...
_________ is one of the five C's of credit and refers to total assets (things owned) and net worth (the difference between what is owned and what is owed).
_________ is one of the five C's of credit and refers to total assets (things owned) and net worth (the difference between what is owned and what is ...
The ease of __________ provided by credit cards makes it very easy to overspend.
The ease of __________ provided by credit cards makes it very easy to overspend.Answer: cre...
Debt comes in only one form.
Debt comes in only one form.Answer: fa...
When negotiating with lenders and collection agencies people should:
When negotiating with lenders and collection agencies people should:Answer: Always get everything in writing, otherwise the deal does not ex...
Although there are several reporting agencies, the three largest and most used are Equifax, Experian, and Transunion.
Although there are several reporting agencies, the three largest and most used are Equifax, Experian, and Transunion.Answer: t...
There is almost always more pressure from insurance salespeople to buy __________ life insurance rather than term life insurance.
There is almost always more pressure from insurance salespeople to buy __________ life insurance rather than term life insurance.Answer: cash va...
Disability insurance purchased through an employer may allow the premium to be paid in pretax dollars.
Disability insurance purchased through an employer may allow the premium to be paid in pretax dollars.Answer: t...
Cash value life insurance simply provides death benefit protection for a specified period of time.
Cash value life insurance simply provides death benefit protection for a specified period of time.Answer: fa...
An insurance rider is simply extra coverage that is in addition to what is received with the main insurance policy.
An insurance rider is simply extra coverage that is in addition to what is received with the main insurance policy.Answer: t...
There are four ways in which to manage pure risks faced each day: avoidance, assumption, reduction, and shifting.
There are four ways in which to manage pure risks faced each day: avoidance, assumption, reduction, and shifting.Answer: t...
In general, risk is the probability or likelihood of a favorable event occurring.
In general, risk is the probability or likelihood of a favorable event occurring.Answer: fa...
Insurance is not used to help protect from financial loss due to disability, illness, death, property loss, and liability.
Insurance is not used to help protect from financial loss due to disability, illness, death, property loss, and liability.Answer: fa...
Insurance policies that have multiple restrictions and few opportunities to redeem the policy or only cover very specific circumstances should be avoided in most cases.
Insurance policies that have multiple restrictions and few opportunities to redeem the policy or only cover very specific circumstances should be avoided...
The primary way to shift the cost of risk is by avoidance.
The primary way to shift the cost of risk is by avoidance.Answer: fa...
Similar to renter's insurance, homeowner's insurance covers personal property, provides liability protection, and pays for other expenses.
Similar to renter's insurance, homeowner's insurance covers personal property, provides liability protection, and pays for other expenses.Answer:&nbs...
A small deductible means the insured person presents more __________ to the insurance company because each claim costs the company more.
A small deductible means the insured person presents more __________ to the insurance company because each claim costs the company more.Answer: ...
With speculative risk there is a chance of loss, but there is also a chance of significant gain.
With speculative risk there is a chance of loss, but there is also a chance of significant gain.Answer: t...
The less risk presented to the insurance company the more will be charged to insure against a loss.
The less risk presented to the insurance company the more will be charged to insure against a loss.Answer: fa...
Over the long run prudent financial planning will slowly increase the need for life insurance.
Over the long run prudent financial planning will slowly increase the need for life insurance.Answer: fa...
Robert was complaining to Mae that his automobile insurance was not as good as he was lead to believe when he purchased the policy. Robert had backed into the mailbox leaving his house and scratched the rear bumper of his car. It cost him $375 to buff and repaint the bumper. His insurance company would not reimburse Robert for the repair because the cost of the repair was less than the deductible on his insurance policy. He complained that he can easily afford the repair bill himself, buy why should he have to pay? Robert had very low premiums, but now wondered if he should buy a more expensive policy with a lower deductible. What should Mae tell Robert?
Robert was complaining to Mae that his automobile insurance was not as good as he was lead to believe when he purchased the policy. Robert had backed...
Each type of insurance has its own type of __________.
Each type of insurance has its own type of __________.Answer: deducti...
Insurance is one purchase that should be made with the hope of never having to use it.
Insurance is one purchase that should be made with the hope of never having to use it.Answer: t...
Typically it is rarely smart to forgo extended warranties when making small purchases.
Typically it is rarely smart to forgo extended warranties when making small purchases.Answer: fa...
Insurance often is complicated and complex.
Insurance often is complicated and complex.Answer: t...
Cash value life insurance simply provides death benefit protection for a specified period of time.
Cash value life insurance simply provides death benefit protection for a specified period of time.Answer: fa...
Property insurance coverage pays for damages to a car when it is involved in an accident.
Property insurance coverage pays for damages to a car when it is involved in an accident.Answer: fa...
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