Chapter 18 Review

The privilege of using someone else's money for a period of time is

___ is the amount that is promised to be paid.

• Interest rate

• Time

• Principal

• Maturity date

The days or months for the date of the note until it should be paid is

• interest rate

• time

• principal

• maturity date

The date on which the note is due is the ___.

• interest rate

• time

• principal

• maturity date

The rate paid for the use of the money is the ___.

• interest rate

• time

• principal

• maturity date

What is the formula for calculating simple interest? (put a space after each character)

Which of the following is not a benefit of credit?

• useful in emergencies

• paying lower prices

• convenience

• immediate possession

A (n) ___ is when you agree to make monthly payments in specific amounts over a period of time.

• promissory note

• down payment

• credit card

• installment loan

A (n) ___ is a written promise to repay based on a debtor's excellent credit history.

• promissory note

• down payment

• credit card

• installment loan

A (n) ___ is a payment of part of the purchase price.

• promissory note

• down payment

• credit card

• installment loan