Unit 8 Loans

Front

What is a loan that you repay with one payment after a specified period of time?

Back

Single-payment Loan

Front

What is the interest rate that you are paying in interest per year on your loan?

Back

Annual Percentage Rate (APR)

Front

What is the total amount you must repay on a loan?

Back

Maturity Value

Front

What is a portion of the cash price of the item you are purchasing that you pay when you purchase the item?

Back

Down Payment

Front

What is a single-payment loan written to promise to pay a certain sum of money on a certain date in the future?

Back

Promissory Note

Front

What is the principal in the context of loans?

Back

The original sum of money borrowed or invested, excluding any interest or fees.

Front

What is an installment loan?

Back

A loan that is repaid over time with a set number of scheduled payments.

Front

What does the term 'interest' refer to in loans?

Back

The cost of borrowing money, usually expressed as a percentage of the principal.

Front

What is a repayment schedule?

Back

A plan that outlines how and when loan payments will be made.

Front

What is the difference between secured and unsecured loans?

Back

Secured loans are backed by collateral, while unsecured loans are not.