Date: _____ / _____ / ______
E-Sheet: Obtaining A Car Loan
Print this activity, fill it out completely and accurately, and be ready to hand in to your teacher.
1. Read the following article on the basics of receiving a loan. Answer the following questions.
a. What does A.P.R. stand for?
b. Why do you think the government would
force all lenders to disclose this rate?
c. What is meant by the phrase "term
of the loan"?
d. Explain why getting a lower A.P.R.
is better than getting a lower term of the loan.
e. What does the principal amount mean
when borrowing money?
f. Describe how you obtain your principal
amount to borrow.
2. What is the difference between a fixed
interest rate loan and a variable
interest rate loan?
3. Discuss situations that would lead you towards a fixed interest
rate loan.
4. Discuss situations that would lead you towards a variable interest
rate loan.
5. What are some benefits of a Credit
Union versus a regular bank.
6. Define the following terms (in your own words):
b. collateral
d. co-signors