Chapter 8 Loans Vocabulary Test

The _______ is the portion of the cash price that is owed on an item after making the down payment. 

• down payment 
• amount financed 
• final payment 
• installment loan

The _____ _____ ______ is an index showing the cost of borrowing money on a yearly basis, expressed as a percent

• repayment schedule 
• single payment loan 
• annual percentage rate
• term 

A(n) ______ _______ is a portion of the cash price of an item that has to be paid before financing the rest on credit

• down payment
• maturity value 
• promissory note 
• final payment 

______ ________ is interest on a loan calculated by basing the time of the loan on a 365-day year

• ordinary interest 
• exact interest
• maturity value 
• installment loan 

A(n) _______ ________ is the payment on a simple interest loan that consists of the remaining balance plus the current month's interest

• installment loan 
• down payment 
• amount financed 
• final payment

A(n) ______ _______ is a loan repaid in equal payments over a specified period of time

• single payment loan 
• installment loan
• maturity value 
• ordinary interest 

The _______ _______ is the total amount that must be repaid on a loan, including the principal borrowed and the interest owed

• ordinary interest 
• maturity value
• repayment schedule 
• principal 

_______ _______ is interest on a loan calculated by basing the time of the loan on a 360-day year

• maturity value 
• exact interest 
• ordinary interest
• promissory note 

A(n) ______ _______ is a written promise to pay a certain sum of money on a certain date in the future

• maturity value 
•  promissory note
• repayment schedule 
• installment loan 

The _________ ________  is a schedule showing the distribution of interest and principal payments on a loan over the life of the loan

• repayment schedule
• promissory note 
• single payment loan 
• installment loan