1. Giselle missed a payment on a car loan. What are the consequences of this missed payment? Select all that apply.
A. More frequent payments
B. An increased minimum payment
C. An increased interest rate
D. A late fee
2. Louie owes a total of $3,000 as shown. He received a gift of $1,800. He pays off the easy-access loan and uses the remaining money to open an emergency savings account. Does this situation represent a financially responsible decision? Explain.
3. Maria receives $900 as a gift and uses it to set up an emergency savings account. What are the benefits of this financially responsible decision? Select all that apply.
A. Maria builds a good credit score.
B. Maria will have money to use in case of an emergency.
C. Maria will have more money to spend on other things.
D. Maria earns money from the interest.
4. Error Analysis Samantha has a credit card balance of $460. She plans to pay it off in two months. The first month, she forgets to pay the minimum payment of $20. The second month, she pays off the entire balance. Samantha says that the total cost of the missed payment is $16.93.
a. What is the total cost of the missed payment?
b. What was Samantha's error?
A. Samantha subtracted the cost of the missed payment from the previous balance.
B. Samantha forgot to subtract the cost of credit if she had made the minimum payment.
C. Samantha forgot to include the late fee when finding the cost of the missed payment.
D. Samantha used the wrong interest rate when finding the cost of the missed payment.
5. Brandon and Sophia are each given $1,200. Brandon puts the money toward his car loan. Sophia pays off her credit card balance and puts the remaining money toward her car loan. Which of these decisions, if any, are financially responsible?