Loan Trivia Instructions: 1.Go to the next slide to display the Game Board. Click on the cell for the selected category and dollar amount. 2.The questions are hyperlinked. To reveal the correct answer, click the screen. 3.To return back to the main board, select the “Back to Board” button. 4.To play, you must be in PowerPoint Slideshow view.

Credit Terminology Loan Costs and Fees Net Worth Types of Debt $100 $200 $300

Credit Terminology for $100 Back to Board What is a fixed rate loan? The type of loan that has an unchanging interest rate. Click screen for answer.

Credit Terminology for $200 Back to Board What is a student loan? One loan that offers a deferral period. Click screen for answer.

Credit Terminology for $300 Back to Board What is a lien? The legal claim of one person to the property of another person to secure the payment of a debt or the satisfaction of an obligation. Click screen for answer.

Loan Costs and Fees for $100 Back to Board What is the cost of credit expressed as a yearly rate? Annual Percentage Rate [APR]. Click screen for answer.

Loan Costs and Fees for $200 Back to Board What is the cost of the loan is less? Assuming all other things are equal, the cost of the loan ________ when the borrower pays a larger down payment? Click screen for answer.

Loan Costs and Fees for $300 Back to Board What is less ? Assuming the interest rate is the same, The total interest paid for a simple interest loan [like most auto loans] is than the total interest for a compound interest loan [like most mortgages] Click screen for answer.

Net Worth for $100 Back to Board What is depreciate? This happens to the price of an automobile over time. Click screen for answer.

Net Worth for $200 Back to Board What is a borrower with a lower credit score? When borrowing money to purchase a car, a person would pay more in interest if they had a credit score. Click screen for answer.

Net Worth for $300 Back to Board Who is Person B? This person has the higher Net Worth: Person A: Bought a new $10,000 car and financed 100% of value. Person B: Bought a $1,000 car and paid cash. Click screen for answer.

Types of Debt for $100 Back to Board What is collateralized or secured debt? For most automobile loans, the car is the collateral the lender can take back, if the borrower fails to make the payment. What is collateralized or secured debt? For most automobile loans, the car is the collateral the lender can take back, if the borrower fails to make the payment. An auto loan is an example of this type of debt Click screen for answer.

Types of Debt for $200 Back to Board What is unsecured or non-collateralized debt? Secured or unsecured debt. A credit card is an example of this type. Click screen for answer.

Back to Board What are fixed interest rate and variable interest rate? (In that order.) Typically, collateralized consumer loans have fixed simple interest rate. Typically, unsecured loans (like credit cards) have variable interest rates in which the APR can change. What are fixed interest rate and variable interest rate? (In that order.) Typically, collateralized consumer loans have fixed simple interest rate. Typically, unsecured loans (like credit cards) have variable interest rates in which the APR can change. A collateralized consumer loan has a ______interest rate AND an unsecured loan usually has a _______interest rate Click screen for answer.