Assignment 5 Essay

321 Words2 Pages
1. If you are borrowing money and paying interest, would you prefer an interest rate that compounds annually, quarterly, or daily? Why? (2-4 sentences. 1.0 points) If i had an account that had compounded interest rate i would pick compound interest daily because i would make more money that way. It would depend on the interest rate though. 2. In your Section_5 folder, navigate to and open the Example_Credit_Report, and then answer the questions below. a. What is the total balance of Jessie Robinson's real estate account? (0.5 points) 19,100 b. What is the total balance of Jessie Robinson's revolving account? (0.5 points) 500 c. Has Jessie Robinson ever applied for bankruptcy? (0.5 points) No he has not applied for bankruptcy d. How many creditors have made inquiries about Jessie Robinson's credit? (0.5 points) three creditors have made inquires about jessie robinson credit e. Do you think Jessie Robinson usually pays bills on time and in full? (1-2 sentences. 1.0 points) Yes I think she does because on her credit report it shows her current and due balances f. Do you think Jessie Robinson's credit score would be great, normal, or poor? Why? (1-3 sentences. 1.0 points) I would say it’s on the normal to poor side. But then again, it could be great. I honestly think it’s on the normal side, myself… She hasn’t invested into big things, therefore… her credit score probably isn’t going to be “great”… but that’s okay. 3. Describe a real or made up but realistic situation in which you would want to use installment credit. (2-4 sentences. 1.0 points) For a made up situation, you could use an installment credit for purchasing a car. The company that is giving you the installment credit is taking a debt investment into their hands so they will most likely charge you a high interest

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