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Credit Unit
Loans
Term | Definition |
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Principle | Original amount of money borrowed, separate from interest or fees |
Interest Rate | The rate charged for borrowing money usually expressed as a percent of the amount borrowed |
Term | The amount of time you have to repay your entire loan |
Loan | An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest |
Installment Loan | Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal |
Amortization | The paying off of debt with a fixed repayment schedule in regular installments over a period of time |
annual percentage rate (APR) | The annual cost of a loan to a borrower, including additional fees (expressed as a percentage) |
Linear Equation | Equation written as y = mx + b |