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Math Finance C04-L01

Wirtz Math Finance Chapter 4 Lesson 1

asset (p174) A person's property or what is owned
installment plan (p175) A method of payment of a purchase or services over a period of time
earning power (p174) A person's ability to earn money now and in the future
down payment (p175) The upfront money applied to a purchase that is made using a loan (credit)
FICO score (p175) A score that summarizes the probability that a debtor will pay a debt and is a reliable way that creditors judge credit worthiness
credit rating (p174) A credit report card that shows how well a user of credit meets financial obligations: these records are used by creditors when they decide to issue credit
credit (p174) When something is bought that is not paid for at the time of purchase
finance charge (p175) The interest that is charged to a buyer when paying for a purchase or service over time
interest (p175) The finance charge or fee that is charged to an installment buyer when paying for a purchase or service over time
debtor (p174) Organization or person who uses credit
creditor (p174) Organization or person who extends credit to debtors
credit reporting agency (p175) Organizations that compile records on users of credit as to how well they repay their debts
Created by: shelley.wirtz