Questions from Personal Finance

Q: Explain the difference between a 10% rate charged on a payday

Explain the difference between a 10% rate charged on a payday loan and a 10% rate charged by a bank on a personal loan.

Q: What are your responsibilities if you cosign a loan? What are

What are your responsibilities if you cosign a loan? What are the potential consequences of failing to live up to your responsibilities as a cosigner?

Q: Why is the premium paid for whole life higher than the premium

Why is the premium paid for whole life higher than the premium for term life? What alternative approach to purchasing life insurance might provide the same benefits as whole life?

Q: What is the purpose of the annual percentage rate measurement? Could

What is the purpose of the annual percentage rate measurement? Could lenders with the same interest rates report different APRs?

Q: What is simple interest? What information is needed to compute it

What is simple interest? What information is needed to compute it? What information is contained in a loan repayment schedule?

Q: Why are loan payments under the simple interest method usually lower than

Why are loan payments under the simple interest method usually lower than loan payments under the add-on interest method?

Q: List the steps in buying a car. What financial criteria should

List the steps in buying a car. What financial criteria should be considered? Discuss each briefly.

Q: Why is purchasing a new car online not as efficient as buying

Why is purchasing a new car online not as efficient as buying a new car at a dealership?

Q: Describe some techniques that car salespeople might use in negotiating the price

Describe some techniques that car salespeople might use in negotiating the price of the car. What should you be aware of at “nohaggle” dealerships?

Q: What are the advantages and disadvantages of leasing a car? Give

What are the advantages and disadvantages of leasing a car? Give some advice for someone considering leasing.