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Financial Literacy
Question | Answer |
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Single-payment loan | Single Payment Loans are available when a source of payment is from something other than normal income. |
Promissory note | a signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand. |
Maturity value | Maturity value is the amount payable to an investor at the end of a debt instrument's holding period (maturity date). |
Term | a fixed period to pay back a loan or interest. |
Ordinary interest | Ordinary interest is interest based on a 360-day year; exact interest, which is sometimes referred to as simple interest, is usually based on a 365-day year, as noted by AllBusiness. |
Exact interest | Definition of Exact Interest. Interest paid based on the basis of a 365-day/year schedule by a bank or other financial institution as opposed to a 360-day basis (ordinary interest). |
Installment loan | An installment loan is a loan that is repaid over time with a set number of scheduled payments; normally at least two payments are made towards the loan. |
Down Payment | an initial payment made when something is bought on credit |
Amount financed | Specifically, it is the amount of the loan principal, less prepaid finance charges (loan origination fees, so-called points, adjusted interest, etc.) and any required deposit balance. The amount financed is used to calculate the annual percentage rate. |
Annual Percent rate | An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment, and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. |
Repayment Schedule | An amortization schedule is a table detailing each periodic payment on an amortizing loan (typically a mortgage), as generated by an amortization calculator. |
Final payment | he last in a series of payments, or the amount needed to pay off a debt: final payment of sth Final payment of the balance must be made at least 60 days prior to closing the account. |