personal finance 5

Topics: Credit card, Credit, Credit history Pages: 3 (1043 words) Published: December 8, 2014
 
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) Annually would cost you less than quarterly. I would go what will cost the cheapest.  

2. In your Section_5 folder, navigate to and open the Example_Credit_Report, and then answer the questions below. N/A  
a. What is the total balance of Jessie Robinson's real estate account? (0.5 points) N/A  
b. What is the total balance of Jessie Robinson's revolving account? (0.5 points) N/A            
c. Has Jessie Robinson ever applied for bankruptcy? (0.5 points)N/A  
d. How many creditors have made inquiries about Jessie Robinson's credit? (0.5 points) N/A  
e. Do you think Jessie Robinson usually pays bills on time and in full? (1-2 sentences. 1.0 points) N/A  
f. Do you think Jessie Robinson's credit score would be great, normal, or poor? Why? (1-3 sentences. 1.0 points) N/A  
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) I would use an installment credit plan for home construction. That way I can take care of it slowly but surely.  

4. Describe a real or made up but realistic situation in which you would want to use noninstallment credit. (2-4 sentences. 1.0 points) I would use an non-installment credit plan when I had all the money up front. For something that would be an hassle to pay over time, like if your were in an unsteady job.  

5. Describe a real or made up but realistic situation in which you would want to use revolving credit. (2-4 sentences. 1.0 points) Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit. Credit cards are an example of revolving credit used by consumers. I would not use something that I could end up in debt by not paying attention to something.  

6. If you had no credit history yet but wanted to establish one,...
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