{"introPage":{"showIntroPage":false,"startButtonText":"Start Quiz","introduction":""},"progressType":"dots","passPercentage":50,"questions":[{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":true,"tipsAndFeedback":{"chosenFeedback":"

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. It is this aspect of the loan, and not the borrower\u00b4s qualifications to repay the loan that will usually make interest rates lower for a secured loan versus an unsecured loan. Borrower qualifications, such as their income or FICO score may impact the interest rate as well, but that is generally true for both secured and unsecured loans.<\/div>\n","notChosenFeedback":"

(A) With a secured loan, the lender retains title to the item being financed until the loan is repaid. If the borrower fails to pay, the lender can repossess the financed item. This reduces lender risk, which is reflected in the interest rate for the loan.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(B) Individuals who buy items that can be secured under the terms of a loan typically have better FICO scores.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(C) Items purchased with secured loans generally hold their value for a longer period of time than items purchased with unsecured loans.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(D) Individuals who prefer secured loans generally earn more income over the loan term and will have better capabilities to repay the loan. This lowers the risk to the lender and subsequently the interest rate charged on the loan.<\/div>\n"}],"overallFeedback":[{"from":0,"to":100}],"behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"type":"auto","singlePoint":false,"randomAnswers":false,"showSolutionsRequiresInput":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false,"passPercentage":100,"showScorePoints":true},"UI":{"checkAnswerButton":"Check","submitAnswerButton":"Submit","showSolutionButton":"Show solution","tryAgainButton":"Retry","tipsLabel":"Show tip","scoreBarLabel":"You got :num out of :total points","tipAvailable":"Tip available","feedbackAvailable":"Feedback available","readFeedback":"Read feedback","wrongAnswer":"Wrong answer","correctAnswer":"Correct answer","shouldCheck":"Should have been checked","shouldNotCheck":"Should not have been checked","noInput":"Please answer before viewing the solution","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"

Interest rates are generally lower for secured loans versus unsecured loans. Why?<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 1"},"subContentId":"ba494f41-4097-4f96-8397-949275e55d83"},{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(A) You will make the same payment each month over the term of the loan.<\/div>\n"},{"correct":true,"tipsAndFeedback":{"chosenFeedback":"

Monthly payments for amortized loans are consistent throughout the loan term. With an amortized loan, the monthly payment is applied first toward reducing the interest balance, and any remaining sum towards the principal balance. As the loan is paid off, monthly interest charges lessen and a progressively larger portion of the payments goes toward principal reduction. Almost all amortized loans allow the borrower to pay off the loan by paying the outstanding loan balance plus currently accrued interest for the last month prior to repayment.<\/div>\n","notChosenFeedback":"

(B) Over the loan term, the amount you pay for interest stays the same and the amount you pay to pay down the loan principal remains the same.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(C) Over the loan term, the amount you pay for interest each month will slowly decrease while the amount you pay towards the principal will slowly increase.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(D) You can pay off the loan at any time during the loan term by paying the outstanding loan balance, plus any interest accrued from the first of the month until the day the loan is paid off.<\/div>\n"}],"overallFeedback":[{"from":0,"to":100}],"behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"type":"auto","singlePoint":false,"randomAnswers":false,"showSolutionsRequiresInput":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false,"passPercentage":100,"showScorePoints":true},"UI":{"checkAnswerButton":"Check","submitAnswerButton":"Submit","showSolutionButton":"Show solution","tryAgainButton":"Retry","tipsLabel":"Show tip","scoreBarLabel":"You got :num out of :total points","tipAvailable":"Tip available","feedbackAvailable":"Feedback available","readFeedback":"Read feedback","wrongAnswer":"Wrong answer","correctAnswer":"Correct answer","shouldCheck":"Should have been checked","shouldNotCheck":"Should not have been checked","noInput":"Please answer before viewing the solution","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"

Which of the following is NOT a characteristic of an \"amortized loan\"?<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 2"},"subContentId":"b5859f1c-925d-4eee-a2cf-21c74ff10d59"},{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(A) The interest rate for the loan.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(B) Any loan application or loan origination fee.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

The \"Annual Percentage Rate\", or APR for a loan is the annual rate that is charged for borrowing, expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with obtaining the loan or incurred during the life of the loan.<\/div>\n","notChosenFeedback":"

(D) All of the above.<\/div>\n"}],"overallFeedback":[{"from":0,"to":100}],"behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"type":"auto","singlePoint":false,"randomAnswers":false,"showSolutionsRequiresInput":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false,"passPercentage":100,"showScorePoints":true},"UI":{"checkAnswerButton":"Check","submitAnswerButton":"Submit","showSolutionButton":"Show solution","tryAgainButton":"Retry","tipsLabel":"Show tip","scoreBarLabel":"You got :num out of :total points","tipAvailable":"Tip available","feedbackAvailable":"Feedback available","readFeedback":"Read feedback","wrongAnswer":"Wrong answer","correctAnswer":"Correct answer","shouldCheck":"Should have been checked","shouldNotCheck":"Should not have been checked","noInput":"Please answer before viewing the solution","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"

When calculating the \"Annual Percentage Rate\" for a loan, the following items must be used in the calculation:<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 3"},"subContentId":"c66fed86-6dca-444c-94ca-aa762741927a"},{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(A) When you make payments on a bi-weekly basis, you will make 26 payments over the course of a calendar year.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(B) You should always check with your lender prior to starting a bi-weekly payment plan to make sure that your loan is eligible for such a payment schedule.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(C) Setting up bi-weekly payments on a loan will likely result in the loan being paid off sooner than under a normal monthly payment plan.<\/div>\n"},{"correct":true,"tipsAndFeedback":{"chosenFeedback":"

When you make bi-weekly payments on a loan, you make a payment every other week, or 26 times per year. As a result of both making 26 payments per year, you will pay off more of the loan than if you made 12 monthly payments. You will also reduce the loan balance earlier each month than you would otherwise do with monthly payments and will accrue less interest each month. Both of these features will help you pay off the loan earlier than you would if you made 12 standard monthly payments. But you should check with your lender before starting a bi-weekly payment plan, because not every loan is eligible for such a repayment strategy.<\/div>\n","notChosenFeedback":"

(D) Every loan is eligible for a bi-weekly repayment plan.<\/div>\n"}],"overallFeedback":[{"from":0,"to":100}],"behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"type":"auto","singlePoint":false,"randomAnswers":false,"showSolutionsRequiresInput":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false,"passPercentage":100,"showScorePoints":true},"UI":{"checkAnswerButton":"Check","submitAnswerButton":"Submit","showSolutionButton":"Show solution","tryAgainButton":"Retry","tipsLabel":"Show tip","scoreBarLabel":"You got :num out of :total points","tipAvailable":"Tip available","feedbackAvailable":"Feedback available","readFeedback":"Read feedback","wrongAnswer":"Wrong answer","correctAnswer":"Correct answer","shouldCheck":"Should have been checked","shouldNotCheck":"Should not have been checked","noInput":"Please answer before viewing the solution","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"

Which of the following statements is NOT TRUE regarding setting up a \"bi-weekly\" payment schedule:<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 4"},"subContentId":"09bddc32-b8cb-463e-ac19-36d7ae325268"},{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(A) Put down a larger down payment.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(B) Have a high FICO score.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

The interest rate you are offered on a loan is dependent on a lot of things, mostly revolving around lender risk. So, when you have been judged to be more credit-worthy (as seen through your FICO score), or put more of your \u00b4skin in the game\u00b4 with a larger down payment, lenders will likely offer you a lower rate because you\u00b4re less of a credit risk. Likewise, shorter term loans often come with lower rates because lenders can more easily forecast the cost of credit over a shorter loan period than they can a long one.<\/div>\n","notChosenFeedback":"

You will likely receive a better interest rate on a loan if you:<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 5"},"subContentId":"3711507e-5f9f-4d04-b73d-00f0ad46b303"},{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(A) Always take the deal because it is free money!<\/div>\n"},{"correct":true,"tipsAndFeedback":{"chosenFeedback":"

Always read the fine print. Most retail credit offers provide for 0 percent interest during the promotional repayment term. In most cases, the purchase will still accrue interest during that term at the store card\u00b4s standard rate, but if the balance is paid off during the promotional period, those interest charges are waived. If the balance is not paid off, you\u00b4ll have interest accrued from the date of purchase added to your outstanding balance. In some cases, retailers (or car dealers) will offer 0 percent financing throughout the loan term. You\u00b4ll typically need a strong FICO score to qualify for such offers, but if you do, you generally will not pay interest over the term of the loan and will only repay the principal. But keep in mind that when such an offer is made, the retailer or dealer is likely thinking they\u00b4re going to profit off of your relationship in other ways. So keep a sharp eye for price hikes or add-ons that may increase your overall cost of purchase.<\/div>\n","notChosenFeedback":"

(B) Interest accrues at the standard rate for the outstanding loan balance. If you pay for the purchase in the 12-month period, you will not pay any interest, but if you do not you will pay all accrued interest charges.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(C) Since you are not paying interest on the outstanding loan balance for the first 12 months, your credit score will not change during that 12-month period.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(D) It's time to stop shopping and start buying. This is the best deal you are going to get!<\/div>\n"}],"overallFeedback":[{"from":0,"to":100}],"behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"type":"auto","singlePoint":false,"randomAnswers":false,"showSolutionsRequiresInput":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false,"passPercentage":100,"showScorePoints":true},"UI":{"checkAnswerButton":"Check","submitAnswerButton":"Submit","showSolutionButton":"Show solution","tryAgainButton":"Retry","tipsLabel":"Show tip","scoreBarLabel":"You got :num out of :total points","tipAvailable":"Tip available","feedbackAvailable":"Feedback available","readFeedback":"Read feedback","wrongAnswer":"Wrong answer","correctAnswer":"Correct answer","shouldCheck":"Should have been checked","shouldNotCheck":"Should not have been checked","noInput":"Please answer before viewing the solution","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"

When a store offers 0% interest for 12 months on a credit purchase, generally speaking:<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 6"},"subContentId":"e3bbc337-6e8e-4fd0-a645-e473c8bb0ab0"},{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":true,"tipsAndFeedback":{"chosenFeedback":"

When you open a line of credit with a financial institution, the lender will establish a maximum loan balance that the borrower cannot exceed during the term the line of credit is open. Borrowers are typically free to borrow any amount up to the maximum during the loan term, pay down the balance and then borrow against it again until the line of credit expires and the full repayment period begins. During the initial term, borrowers are typically expected to repay a percentage of the outstanding balance, or at a minimum, any interest accrued during the month.<\/div>\n","notChosenFeedback":"

(A) Are able to borrow any amount up to a maximum at your discretion. You pay interest only on the amount borrowed and have flexible repayment terms.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(B) You borrow a set amount and repay it in fixed monthly installments over a defined term.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(C) You borrow a small amount on a short-term basis and secure that loan against your next pay check.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(D) None of the above.<\/div>\n"}],"overallFeedback":[{"from":0,"to":100}],"behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"type":"auto","singlePoint":false,"randomAnswers":false,"showSolutionsRequiresInput":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false,"passPercentage":100,"showScorePoints":true},"UI":{"checkAnswerButton":"Check","submitAnswerButton":"Submit","showSolutionButton":"Show solution","tryAgainButton":"Retry","tipsLabel":"Show tip","scoreBarLabel":"You got :num out of :total points","tipAvailable":"Tip available","feedbackAvailable":"Feedback available","readFeedback":"Read feedback","wrongAnswer":"Wrong answer","correctAnswer":"Correct answer","shouldCheck":"Should have been checked","shouldNotCheck":"Should not have been checked","noInput":"Please answer before viewing the solution","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"

<\/p>\n\n

When you obtain a \"line of credit\" from a lender, you:<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 7"},"subContentId":"ecfda42b-aa0b-4a9d-9aa0-ee3090a33df5"},{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":true,"tipsAndFeedback":{"chosenFeedback":"

An amortization schedule shows a complete table of periodic loan payments, broken down by the amount of interest paid and the principal to be repaid each month from the first to last payment. For amortized loans, the payment is the same each month, but the amount going to interest and principal with each payment will change each payment period. Over time, the percentage of each payment going towards interest will decrease as the loan balance decreases. Since the loan payment remains the same, the remaining portion going to pay down the loan amount will increase.<\/div>\n","notChosenFeedback":"

(A) The ratio of principal and interest paid during each payment period and demonstrates how your loan's principal amount decreases over time.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(B) All of the payments you've made while repaying a loan by amount and date.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(C) The process and timetable for obtaining a loan from the time you fill out an application until your loan is approved.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(D) How the loan amount actually increases over time if you don't make the full payment each month.<\/div>\n"}],"overallFeedback":[{"from":0,"to":100}],"behaviour":{"enableRetry":true,"enableSolutionsButton":true,"enableCheckButton":true,"type":"auto","singlePoint":false,"randomAnswers":false,"showSolutionsRequiresInput":true,"confirmCheckDialog":false,"confirmRetryDialog":false,"autoCheck":false,"passPercentage":100,"showScorePoints":true},"UI":{"checkAnswerButton":"Check","submitAnswerButton":"Submit","showSolutionButton":"Show solution","tryAgainButton":"Retry","tipsLabel":"Show tip","scoreBarLabel":"You got :num out of :total points","tipAvailable":"Tip available","feedbackAvailable":"Feedback available","readFeedback":"Read feedback","wrongAnswer":"Wrong answer","correctAnswer":"Correct answer","shouldCheck":"Should have been checked","shouldNotCheck":"Should not have been checked","noInput":"Please answer before viewing the solution","a11yCheck":"Check the answers. The responses will be marked as correct, incorrect, or unanswered.","a11yShowSolution":"Show the solution. The task will be marked with its correct solution.","a11yRetry":"Retry the task. Reset all responses and start the task over again."},"confirmCheck":{"header":"Finish ?","body":"Are you sure you wish to finish ?","cancelLabel":"Cancel","confirmLabel":"Finish"},"confirmRetry":{"header":"Retry ?","body":"Are you sure you wish to retry ?","cancelLabel":"Cancel","confirmLabel":"Confirm"},"question":"

A loan amortization schedule shows:<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 8"},"subContentId":"4d37a4a2-40a4-468b-8d77-5e1039e04ae1"},{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":true,"tipsAndFeedback":{"chosenFeedback":"

While paying a lower monthly payment on your consolidation loan may be beneficial from a cash flow perspective, it will likely result in you paying more over the repayment term if the repayment term is longer or the APR is higher than your prior loans. To make sure you will pay less over the repayment term, it is important to obtain a consolidation loan that offers a lower APR and where you can repay the consolidation loan over the same or shorter period than your prior loans.<\/div>\n","notChosenFeedback":"

(A) The APR on the consolidation loan is lower than your other loans and you pay the consolidation loan off in the same time period or less than it would have taken you to pay off your other loans or credit card balances.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(B) You are able to reduce your monthly payment from the combined payments of your other loans or credit card balances, regardless of the APR on the consolidation loan.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(C) You are able to extend the repayment period from the time it would take you to pay off your other loans or credit card balances and the APR on the consolidation loan is equal to what you have today.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

<\/p>\n\n

If you take out a consolidation loan, you will pay less over the repayment period if:<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 9"},"subContentId":"8b794fca-51a3-411f-94f6-79b6be0862eb"},{"params":{"media":{"disableImageZooming":false},"answers":[{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(A) Always take the Cash Back.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

(B) Always take the 0% financing.<\/div>\n"},{"correct":true,"tipsAndFeedback":{"chosenFeedback":"

It always pays to shop around. If you can apply the Cash Back to the down payment of your vehicle, you\u00b4ll lower the loan amount. If you can find a lender who offers a low enough interest rate on the reduced loan amount, you\u00b4ll often times pay less over the term of the loan by taking the Cash Back and going with a different lender. However, if the additional interest you\u00b4ll pay over the loan term with the alternative lender is greater than the Cash Back, you could be better off taking the 0 percent financing offered by the dealer.<\/div>\n","notChosenFeedback":"

(C) Shop around for the lowest financing rate you can find from other sources and see if the total repayment cost of the lower loan amount (purchase price minus the Cash Back) is less than the 0% financing scenario.<\/div>\n"},{"correct":false,"tipsAndFeedback":{"tip":"","chosenFeedback":"","notChosenFeedback":""},"text":"

When buying a car and the dealer is offering 0% financing or Cash Back, you should:<\/p>\n"},"library":"H5P.MultiChoice 1.16","metadata":{"contentType":"Multiple Choice","license":"U","title":"Question 10"},"subContentId":"6b2f8726-b772-4cd3-8168-eb8761497bc1"}],"disableBackwardsNavigation":false,"randomQuestions":false,"endGame":{"showResultPage":true,"showSolutionButton":true,"showRetryButton":true,"noResultMessage":"Finished","message":"Your result:","scoreBarLabel":"You got @finals out of @totals points","overallFeedback":[{"from":0,"to":100}],"solutionButtonText":"Show solution","retryButtonText":"Retry","finishButtonText":"Finish","submitButtonText":"Submit","showAnimations":false,"skippable":false,"skipButtonText":"Skip video"},"override":{"checkButton":true},"texts":{"prevButton":"Previous question","nextButton":"Next question","finishButton":"Finish","submitButton":"Submit","textualProgress":"Question: @current of @total questions","jumpToQuestion":"Question %d of %total","questionLabel":"Question","readSpeakerProgress":"Question @current of @total","unansweredText":"Unanswered","answeredText":"Answered","currentQuestionText":"Current question","navigationLabel":"Questions"}}