Assignment 5
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)
I would want an interest rate that compounds annually. With an annual loan, it doesn’t compound that often which is less interest. 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
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)
Jessie Robinson does pays 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)
It’s normal because Jessie Robinson pays most of his bills on time. 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)
My mom bought a couch and she had to pay some of it off every month.
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)
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)
I would use credit resolving when I was buying a car. Whether it was 1500 or 3000 id use the credit and pay it off.
6. If you had no credit history yet but wanted to establish one, describe what you could do in order to establish a credit history. (3-6 sentences. 2.0 points)
I would go for a student loan because it makes your credit history better. Then I might go get a
(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)
I would want an interest rate that compounds annually. With an annual loan, it doesn’t compound that often which is less interest. 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
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)
Jessie Robinson does pays 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)
It’s normal because Jessie Robinson pays most of his bills on time. 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)
My mom bought a couch and she had to pay some of it off every month.
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)
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)
I would use credit resolving when I was buying a car. Whether it was 1500 or 3000 id use the credit and pay it off.
6. If you had no credit history yet but wanted to establish one, describe what you could do in order to establish a credit history. (3-6 sentences. 2.0 points)
I would go for a student loan because it makes your credit history better. Then I might go get a