1. which type of debt is most often secured?
a. mortgage
b. personal line of credit
c. credit card
d. revolting line of credit

2. a(n) is considered unsecured debt
a. auto loan
b. mortgage loan
c. home equity loan
d. credit card

3. you (or your parents) are purchasing a car for $18,965 plus 6.25% sales tax. the down payment is $1,500. what is the difference in the accured in interest at the end of the first month between the average and the excellent credit ratings?
a. $15.01
b. $15.95
c. $14.47
d. $13.83

4. you (or your parents) purchase a car for $28,125 plus 7.5% sales tax. the down payment is $3,125. you have a fair credit rating. what is your new principal balance at the beginning of the second month if you pay $529.79 at the end of the first month?
a. $26,706.14
b. $27,595.25
c. $29,704.53
d. $26,579.63

1. which type of debt is most often secured? 
a. mortgage 

2. A(n) is considered unsecured debt 
d. credit card 

3. you (or your parents) are purchasing a car for $18,965 plus 6.25% sales tax. The down payment is $1,500. What is the difference in the accured in interest at the end of the first month between the average and the excellent credit ratings?

Excellent secured APR: 3.95% = 0.3291% for 1 month
Average secured APR: 4.90% = 0.4083% for 1 month

18,965 x  1.0625 = 20,150.31 - 1,500 dp = 18,650.31 * (0.4083%-0.3291%) = 18,650.31 * 0.0792% = 1,477/10 / 100% = 14.77  nearest to Choice C 14.47.

4. you (or your parents) purchase a car for $28,125 plus 7.5% sales tax. The down payment is $3,125. You have a fair credit rating. What is your new principal balance at the beginning of the second month if you pay $529.79 at the end of the first month?

Fair secured apr: 5.60% = 0.4666% for 1 month

28,125 x 1.075 = 30,234.38 - 3125 = 27,109.38

27,109.38 x 1.004666 = 27,235.87 - 529.79 = 26,706.08 nearest to Choice A. 26,706.14

I’ll you if you answer my questions!