Chapter 8

Repaid in periodic payments, usually monthly.

• Lien
• Principal
• Single-payment loan
• Installment loan

Paying off an installment loan sooner than the original term.

• Down payment
• Collateral
• Early repayment
• Promissory Note

Written agreement to pay back a loan.

• Promissory Note
• Lien
• Installment loan
• Annual interest rate

Annual interest amount divided by principal.

• Down payment
• Term
• Promissory Note
• Annual interest rate

Pledged as security for a loan.

• Principal
• Lien
• Down payment
• Collateral

Original sum of money borrowed.

• Down payment
• Promissory Note
• Principal
• Annual interest rate

Gives the lender the right to claim an asset if necessary to repay a loan.

• Lien
• Collateral
• Early repayment
• Promissory Note

Repaid in one payment with interest.

• Annual interest rate
• Installment loan
• Principal
• Single-payment loan

Length of time money is borrowed.

• Term
• Lien
• Collateral
• Installment loan

Amount the borrower pays up front for a purchase.

• Early repayment
• Down payment
• Installment loan
• Principal