Which formula is used to calculate the finance charge per 100 of the amount financed?

Which formula is used to calculate the finance charge per 100 of the amount financed?
 A) (finance charge  amount financed)  100.
  B) (finance charge  amount financed)  100.
  C) finance charge  (amount financed  100).
  D) finance charge  (amount financed  100).

Q. 2

If the principal and the amount of interest for one year are known, the rate of interest can be found by
 A) multiplying the principal by the interest for one year.
  B) multiplying the interest for one year by the principal.
  C) dividing the interest for one year by the principal.
  D) dividing the principal by the interest for one year.

Q. 3

Some lenders require the borrower to pledge property as security for a loan. This property is referred to as
 A) an installment.
  B) equity.
  C) a down payment.
  D) collateral.

Q. 4

Which of the following reasons best describes why a seller adds a finance charge to the cash price when calculating the installment price?
 A) To penalize the customer for not paying cash.
  B) To cover the extra cost of doing business on the installment plan.
  C) To offset the interest paid to the customer.
  D) To cover the higher prices charged by the seller's suppliers for dealing with installment plans.

Q. 5

List three factors that influence your credit score.