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Ag business unit 5

TermDefinition
Amortize to pay off a loan by gradual and periodic payment of principal and interest
Annual Percentage Rate (APR) the interest rate a borrower will pay on a loan including loan fees and other costs expressed as a percentage of the amount borrowed
Asset anything of monetary value that is owned by an individual
Credit a promise of future payment in money or in kind in exchange for present money, goods, or services
Financial Capital money used by businesses to buy what they need in producing products and services; purchasing power
Interest the cost of borrowed money; a sum paid for the use of capital; often calculated as a percentage of the loan amount (principal)
Labor a factor in production; manual or mental effort for wages, salaries, or other compensation
Land a factor in production; an economic good supplied by nature
Loan money borrowed from a lender (such as a commercial bank) and repaid with interest
Natural Resource wealth supplied by nature, including soil, air, water, minerals, fossil fuel, wildlife, and climate
Principal accumulated capital; sum of money that accumulates interest; proceeds of a loan
Productive Resource any item of value that is used to produce goods
Resource any materials or advantages to which an entrepreneur has access
Created by: csmith7393
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