Unit 8 Loans

A chart that shows the distribution of interest and principal over the life of the loan.

• Repayment Schedule

• Interest

• Principal

• payment

You borrow money and pay it back in equal monthly payments with interest.

• Interest

• Principal

• Simple Interest Installment Loan

• Repayment Schedule

The amount of money that you agree to pay toward your loan each month.

• Principal

• Interest

• Final Payment

• Monthly Payment

It is the interest rate that you are paying in interest per year on your loan.

• Interest

• Simple Interest Installment Loan

• Principal

• Annual Percentage Rate (APR)

A loan that pay off in multiple equal payment over a predetermined period of time.

• Simple Interest Installment Loan

• Down Payment

• Amount Financed

• Installment Loan

A portion of the cash price of the item you are purchasing that you pay when you purchase the item.

• Amount Financed

• Installment Loan

• Down Payment

• Principal

The portion of the cash price that you owe after you pay the down payment.

• Amount Financed/Principal

• Down Payment

• Installment Loan

• Interest

A loan that you repay with one payment after a specified period of time.

• Single-payment Loan

• Simple Interest Loan

• Installment Loan

• Repayment Schedule

A single-payment loan written to promise to pay a certain sum of money on a certain date in the future.

• Single Payment Loan

• Promissory Note

• Maturity Value

• Term

The total amount you must repay.

• Promissory Note

• Term

• Maturity Value

• Interest