12 terms

THS Business Math Chapter 8 Vocab

single-payment loan
loan you repay with one payment at a specific period of time
promissory note
a written promise to pay a certain sum of money on a specific date in the future.
maturity value
is the total amount you must repay
the amount of time in which the loan is granted
ordinary interest
interest based on a 360 day year
exact interest
interest based on a 365 day year
installment loan
loan you repay in in equal payment over a specified period of time
down payment
a portion of the cash price of the item that you are purchasing before financing.
amount financed
An index showing the cost of borrowing money on a yearly basis expressed as a percent
annual percentage rate
index showing cost of borrowing money on a yearly basis
repayment schedule
shows the distribution of interest and principal over the life of a loan
final payment
when you pay the previous balance plus the current month's interest