Chapter 7 - specified period of time 10 down payment is a...

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Chapter 7: Loans 1. loans : money that is borrowed and must be repaid along with interest owed. 2. single-payment loan : is a loan that you repay with one payment after a specified period of time. 3. promissory note : is a type of single-payment loan. 4. maturity value : is the total amount you repay. 5. principal : is the amount borrowed. 6. term : is the amount of the time for which the loan is granted. 7. ordinary interest : is calculated by basing the time of the loan on a 360-day year. 8. exact interest : is calculated by basing the time on a 365-day year. 9. installment loan : is a loan that you repay in several equal payments over a
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Unformatted text preview: specified period of time. 10. down payment : is a portion of the cash price of the item you are purchasing. 11. amount financed : is the portion of the cash price that you owe after making the down payment. 12. simple interest installment loan : a loan in which you repay the amount financed plus the finance charge in equal monthly payments. 13. annual percentage rate : is an index showing the relative cost of borrowing money. 14. repayment schedule : shows the distribution of interest and principal over the life of the loan. 15. final payment : is the previous balance plus the current months interest....
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This note was uploaded on 01/24/2012 for the course HUM 9999 taught by Professor Variousprofessorslisted during the Summer '06 term at Abilene Christian University.

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