Interest Calculation, Loan Amortization, Financial Literacy Flashcard

Front

What is the original amount of money that is borrowed called?

Back

Loan amount or principal.

Tags

CCSS.7.RP.A.3

Front

True or False: A variable interest rate will remain the same over the entire loan.

Back

False.

Front

What is the main difference between a fixed rate mortgage and an adjustable-rate mortgage?

Back

The interest rate.

Front

If the cost of two buses is $98,318 and a down payment of $43,507 is made, how much more is needed to pay for the buses?

Back

$54,811.

Tags

CCSS.6.NS.B.3

Front

What is the formula for simple interest?

Back

i = p • r • t.

Tags

CCSS.7.RP.A.3

Front

If a sofa costs $1,475 and you have $1,150, how much more do you need?

Back

$325.

Tags

CCSS.3.OA.D.8

Front

What does APR stand for in financial terms?

Back

Annual Percentage Rate.

Tags

CCSS.7.RP.A.3

Front

What is a down payment?

Back

An initial payment made when something is bought on credit.

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

Front

What is loan amortization?

Back

The process of paying off a loan over time through regular payments.

Front

What is the purpose of a credit score?

Back

To assess the creditworthiness of a borrower.