Personal Finance Essay

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Assignment 5: Credit and Loans (25.0 points) 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) Assuming the same rate, annually the less often it compounds the less interest being paid overall if different interest rates though that changes things. 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) $19,000 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 d. How many creditors have made inquiries about Jessie Robinson's credit? (0.5 points) 3 e. Do you think Jessie Robinson usually pays bills on time and in full? (1-2 sentences. 1.0 points) Yes from the papers im seeing Jessie did pay his bills on time and in full. f. Do you think Jessie Robinson's credit score would be great, normal, or poor? Why? (1-3 sentences. 1.0 points) His credit id normal. Its not over board yet he knows how to control it and stay on track. 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) Business trip. Charge all expenses on credit card. Submit expense voucher to employer for reimbursement. Use reimbursement to pay off card. Didn't tie up cash waiting for reimbursement. Plus, I get cash rewards for using the card. 4. Describe a real or made up but realistic situation in which you would want to use non installment credit. (2-4 sentences. 1.0 points) You would want to use a non-installment credit if you are purchasing a piece of furniture you can pay it off in a full pay later. 5. Describe a real or made up but

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