1)Negative information on your credit report must be removed after ________ year(s), with the exception of bankruptcy information, which remains on the report for 10 years.

8

7

1

5

2)Gary is looking to lease a new car. The dealerships finance person stated that their banks will not approve any amount over the amount computed at a 26% percent debt payment ratio. If Garys net monthly income is $3550, and he also pays $300 in student loan payments, how much can he afford to pay for an auto lease?

$623

$923

$845

$1001

3)Elizabeths credit card balance is $5000 at an 12% APR. It has become difficult to make the minimum payment each month. She decided to make a plan for paying off the credit card by increasing her hours at her part-time job and applying the income to debt reduction. She estimates that she can pay $200 per month, and she plans to avoid using her card for any new purchases. How long will it take her to pay off the card dues?

13 months

22 months

16 months

29 months

4)Sarah began her credit card billing cycle with a zero balance, and her billing date is March 20. She made a $4600 purchase with her card on March 21. She receives her bill on March 24 with a due date of April 15. Her card has an 18 percent APR and a grace period. How much interest will she owe if the entire balance is paid by May 15?

$52.08

$28.75

$0

$57.50

5)What information is typically not asked for on a consumer credit application?

Employer contact information.

Applicants current address.

Number of children.

Total household income.