Personal loans Payday loans Student loans [Choose ] [Choose ] are offered to college students and their families to help cover cost of higher education. are short-term, high-interest loans designed to bridge the gap from one paycheck to the next can be used for any expense and doesn't have a designated purpose. [Choose ]

Personal loans Payday loans Student loans [Choose ] [Choose ] are offered to college students and their families to help cover cost of higher education. are short-term, high-interest loans designed to bridge the gap from one paycheck to the next can be used for any expense and doesn't have a designated purpose. [Choose ]

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 1FPE

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What is true regarding subsidized and unsubsidized loans? Both types of loans require students to show proof of financial hardship to qualify and apply. Both types of loans share the same interest rate for students at the undergraduate level. Both types of loans start accruing interest after students graduate. Both types of loans are available to students who are in graduate school. Both types of loans have the same maximum amount (loan limit cap) that can be borrowed for a given year.
Which of the following is a feature of a home equity loan? Group of answer choices a. The interest rate on a home equity loan is higher than that on other loans. b. The interest paid on a home equity loan is usually tax deductible. c. A home equity loan is generally the first mortgage loan. d. A home equity loan is a single-payment loan. e. A home equity loan is an unsecured loan.
First-time homeowners often use FHA loans to finance their home. Go to fha-home-loans.com and find out the current requirements to qualify for an FHA loan. They may differ slightly from that described in the book because the underwriting requirements frequently change. Summarize the types of loans that are currently available. What is the highest loan-to-value ratio that you could obtain?
5. Which of the following types of student loans is influenced the most by an applicants credit score A. Federal B. State C. Private D. Perkins
Which of the following is not a way in which banks lend short-term unsecured loans? a. Through a guaranteed credit line that has a commitment fee for any unused amount for the year b. Through credits cards lines with a certain credit limit c. By sending the amount earned from trust and investment products offered by the bank d. By lending a single date maturity loan to a debtor
1)I need help with finance homework questions asap please. Multiple choice question. All else equal, when deciding between two loan offers the loan that should be accepted is the one: With the most frequent compounding period. With the lowest annual percentage rate. With the least frequent compounding period. With the lowest stated interest rate. With the lowest effective annual rate.
More than 40 million Americans are estimated to have at least one outstanding student loan to help pay college expenses (40 Million Americans Now Have Student Loan Debt, CNNMoney, September 2014). Not all of these graduates pay back their debt in satisfactory fashion. Suppose that the following joint probability table shows the probabilities of student loan status and whether or not the student had received a college degree. a. What is the probability that a student with a student loan had received a college degree? b. What is the probability that a student with a student loan had not received a college degree? c. Given that the student has received a college degree, what is the probability that the student has a delinquent loan? d. Given that the student has not received a college degree, what is the probability that the student has a delinquent loan? e. What is the impact of dropping out of college without a degree for students who have a student loan?
What does Ginnie Mae do? Select all that apply. A.Guarantees VA loans that allow no or 0% down payment so these loans can be sold on the secondary market.. B.Enforces the Truth in Lending Act C.Passed the Dodd Frank Wall Street Reform Act and Consumer Protection Act of 2010 D.Prevents discrimination and monitors lenders for discrimination against applicants in lending. E.Guarantees FHA loans that allow a low 3.5% down payment so that they can be sold on the secondary market.
How does compound interest affect the loans you undertake? For example, how would this affect student loans that are currently in deferral?
Which of the following is not a way in which banks lend short-term unsecured loans? Through credits cards lines with a certain credit limit Through a guaranteed credit line that has a commitment fee for any unused amount for the year By sending the amount earned from trust and investment products offered by the bank By lending a single date maturity loan to a debtor
PayDay loans are one form of financing that consumers can use when they have insufficent cash to pay bills. Borrowers often can't access other methods of financing, because of a poor credit score (credit card) or lack of homeownership (home equity loans). States often have laws to limit the amount that PayDay lenders can charge for these short-term loans. For example, the state of Alabama has a law that limits the finance charge or interest rate to 17.55% for a two-week loan of $100. In other words, if you borrow $100, you must pay back $117.55 two weeks later. If you can’t pay it back in two weeks, the PayDay lender will let you borrow what you owe ($117.55 ; principal of $100 and interest of $17.55), again at the rate of 17.55% for a two week loan. You can keep doing this- tacking on interest to principal every two weeks- until you have sufficient funds to payback the loan in full. A. What is the APR of the loan? B. What is the EAR of the loan? C. Suppose…
A home equity line of credit (HELOC) is, loosely speaking, like a credit card for your home. You can borrow money by drawing down on the line of credit. But, because the borrowed money is for the purpose of your home, the interest is tax-deductible meaning that you can deduct the interest paid on this money from your income to reduce your taxes. If the current annual interest rate on a HELOC is 3.85\%3.85% and your tax rate is 32\%32%, what is the after-tax interest rate you will pay on any borrowings under the HELOC?