A Place to Live
What does 'furnished' mean?
It means that the apartment comes with funiture
What is interest?
both the cost of borrowing funds and the profit you get from depositing funds in a savings account
What is the simple interest formula?
I = p x r x t
Interest = principle x rate x time
What is a credit line?
refers to the maximum amount of credit a financial institution extends to a client.
Turn 75% into a decimal
.75
What is a security deposit?
An amount against the possibilty that the renter damages the property beyond normal wear and tear
What is debt?
Money that is owed to a bank or other financial institution
What is a promissory notes?
A contract where the signed promises to pay back a loan
What is impulse buying?
Buying something you don't need just because you have a credit card or extra cash
Turn 7.5% into decimal
.075
What is an application deposit?
sum that a landlord or property manager will require you to pay when submitting an application for a rental property. The application deposit essentially holds the property for you in exchange for a payment
What is a loan?
A borrowed sum of money that is expected to be paid back with interest
What is meant by APR?
APR is annual percentage rate and is the rate of interest a borrower will pay in a year
What is the difference between a credit card and a charge card?
A credit card can revolve (you can pay on it over a long period of time) but a charge card has to be paid OFF at the end of the month you charge.
Find the simple interest for a loan of $500 at 6% for two years.
500 x .06 x 2 = 60
What does it mean to evict?
when a tenant is being forced to move out of his home, usually through legal action because they didn't pay their due rent
What is a creditor?
A person or company to whom money is owed
What is prepayment penalty?
If you pay off your loan early- the bank loses money because you aren't paying interest. To offset this loss, the bank might charge a fee if you pay off the loan early
Truth- in -Lending Act protects you if your card is lost or stolen. How much do you have to pay if the card is stolen?
If you report before the stolen is card is used- you don't have to pay anything. If you report after the card is used there is a limit of $50.
How much should your housing costs be if you make $25000 a year? (remember that you should only spend 28% of your monthly gross montly income)
Need the monthly so: 25000/12 = 2,083.33
Need 28% into decimal = .28
2,083.33 x .28 = 583.33
so you really can't pay more than 583.33 a month on rent
What percent of your income should be housing?
28%
What is an asset?
a useful or valuable thing
What is wage garnishment?
If you stop paying on a loan, the creditor can fill out a form allowing them to take the monthly money owed out of your paycheck (before you get your paycheck)
What is a debit card?
A debit card is directly tied to your checking account. You can only 'charge' the amount that you currently have in the account.
At the beginning of a 30 day billing period, Jami has an unpaid balance of $500 on her credit card. On the 15th of the month she makes a payment of $250. Find the average daily balance.
Number of days Balance days x Balance
14 500 7000
16 250 4000
total
30 11000
11000/30 = $366.67