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chapter 8

math

QuestionAnswer
single payment loan a loan that you repay with one payment after a specified period of time
promissory note a written promise to pay a certain sum of money on a specific date in the future
maturity value the total amount of the loan you must repay
term is the amount of time for which the loan is granted
ordinary interest based on a 360 day year
exact interest based on 365 day year
installment loan equal payments over a specified time period on time
down payment a portion of the price of the item that you purchase before financing the rest on credit
amount financed the portion of the cash price that you owe after making the down payment
annual percentage rate (APR) an index showing the cost borrowing money on a yearly basis, expressed as a percent
repayment schedule the distribution of interest and principal over the life of a loan
final payment pay only the previous balance plus the currents month interest
Created by: Justinisalol
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