total loan payment minus the amount of the loan ($10,000) equals the total interest charges.

One of the most difficult tasks on the quantitative scale, this item requires readers to look at an advertisement for a home equity loan and then, using the information given, explain how they would calculate the total amount of the interest charges associated with the loan.

Excerpts taken from: National Center for Education and Statistics, U.S. Department of Education. Defining Literacy and Sample Items. [Online]. Available: [accessed: October, 2003].

FIGURE C-13 Home equity loan advertisement used in NALS.

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