Module 13 - Module Summary

 

Summary (1).svgSummary

In this module, students learned about ways to save for retirement, annuities, and conventional loans, as well as formulas that can be used to solve problems involving loans and savings/investment accounts. They also learned how to identify which formula to use for each type of problem involving loans, savings, and annuities by looking for keywords within the problems and figuring out which type of interest was being used. Next, students traveled through the home buying process and learned about different types of mortgages, how mortgage rates and down payments work, and the process behind selling a home. Finally, they discovered the different types of insurance coverage available and learned about insurance plans and policies.

 

Glossary (1).svgGlossary

Lesson 1 - Retirement

  • stocks - an investment option that provides a person with a share in the ownership of a company

 

Lesson 2 - Loans

  • adjustable-rate loan - a loan where the interest rate fluctuates 
  • down payment - when purchasing an item, such as a car or house, with a loan, it is the amount of money put down as an initial payment 
  • fixed-rate loan - a loan where the interest rate remains the same for the life of the loan
  • principal - amount of the loan

 

Lesson 3 - Selecting the Right Financial Equation

  • accrued - accumulated or built up
  • amortize - to pay off a debt by making regular payments, usually monthly
  • investment - investing money in hopes of gaining profit
  • lender - a person or financial institution, like a bank, that lends money to a person or to a company
  • loan - something that is borrowed, usually money

 

Lesson 4 - Buying a Home

  • adjustable-rate mortgage - a mortgage loan where the interest rate fluctuates 
  • application fee - a fee that is sometimes negotiable, charged in order for the lender to process a mortgage loan application
  • appraisal fee - a fee to have an appraisal company come out to confirm the home is worth the sales price, which is a process required by lenders 
  • attorney fee - a fee to have an attorney review closing documents, which can be requested by the buyer or lender
  • closing costs - charges and fees paid at the end of a real estate transaction when the title of the property is transferred into the buyer’s name
  • courier fee - price to have loan documents transported 
  • credit report cost - the price paid to the lender in order for them to pull a mortgage loan applicant’s credit report, which helps the lender determine if the applicant qualifies for the loan
  • down payment - the amount of money you put down as an initial payment during the closing on a home purchase
  • fixed-rate mortgage - a mortgage loan where the interest rate remains the same for the life of the loan
  • home inspection fee - fee for having a home inspector come out to examine the condition of the property that is being purchased
  • homeowner’s insurance - protection against damage to the home in exchange for a premium
  • landlord - a person who rents out land, an apartment, house, or a commercial building or suite to a tenant
  • lease agreement - a contract between a landlord and tenant when renting property
  • mortgage rate - the interest rate that is charged by the mortgage lender
  • origination fee - a fee charged by the lender for administrative costs
  • survey fee - a fee charged by a licensed surveyor to come out to the home to verify the property lines and measure the property
  • transfer taxes - tax paid when the home’s title is passed from the seller to the buyer
  • underwriting fee - a fee charged by the mortgage lender to research and decide on whether or not to approve the mortgage loan application

 

Lesson 5 - Insurance

  • coinsurance - the percentage of a medical bill the insured shares with the health insurance company after the deductible has been met
  • copay - a flat fee, which varies depending on the type of physician or facility visited, that the insured will be required to pay each time they visit a physician or fill a prescription
  • deductible - the amount the insured will pay out-of-pocket before the insurance company will pay its portion
  • Medicaid - a federal and state program that provides healthcare coverage to low-income Americans
  • Medicare - a government program that provides health insurance to Americans who are 65 years of age or older
  • out-of-pocket maximum - the maximum amount the insured will have to pay for healthcare each year before the health insurance company will start paying 100% of the covered benefits
  • premium - the price for insurance coverage, usually paid on a monthly basis

 

Quiz (2).svgModule Quiz

The module quiz will assess your understanding of the material in lessons you've read. This is a multiple-choice quiz that may only be taken one time. It is an open-book/open-note quiz. Please feel free to use the information presented in the lessons from this module to help answer the questions to the best of your abilities. To set up your computer, open the quiz in a new tab or a new window by right-clicking on the quiz link, and then select "Open in a New Tab" or "Open in a New Window". While this is an untimed quiz, you will only be able to take this quiz one time. 

Please read through the directions on the following page before starting your quiz.