INTERES

The _________of a loan is the initial amount of money borrowed.

The ________ _____ determines the additional cost of the loan.

The ____of a loan refers to the length of time you have to repay the loan in full.

The _______ _______ includes both a portion of the principal and the interest.

What factor determines how much extra you will pay for a loan?

• a) The bank

• b) Interest rate

• c) The customer

What is the time period during which a loan must be repaid?

• Loan term

• Interest rate

• Monthly payment

The principal of a loan decreases with each monthly payment.

• (False)

• (True)

The interest rate is always fixed and cannot change.

• (True)

• (False)

The loan term can be negotiated between the customer and the bank.

• (False)

• (True)

Which of the following terms refers to the initial amount of money borrowed in a loan?

• Interest rate

• Principal

• Term