Interest Rates 1
The finance charge or total amount it costs per year to use credit, calculated as a percentage of the amount borrowed (percentage rate), including interest, transaction fees, and service charges.
APR(Annual Percentage Rate)
An interest rate that adjusts over time in response to changes in the market.
Variable interest
2 x M x FC divided by P x(n+1) is the formula for?
APR (Annual Percentage Rate)
three main types of credit?
open, revolving, and installment
What does FICO stand for?
Fair issac Corporation
money paid regularly at a particular rate for the use of borrowed money.
interest.
Fixed rate loans stay the same for the loan's entire repayment term.
Fixed interest
always going to be 12 in the formula for APR
M
What are the three C's?
Capacity, character, collateral
A legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts.
What is Bankruptcy
Loan to buy real estate, such as land or a home.
Mortgage
Paying off a debt over time in equal installments.
Amortization
The number of months within the time ex, years.
N
Three credit bureaus?
Equifax, Experian, Transfusion
What is two types of Bankruptcy?
Chapter 7 and Chapter 13
Interest on the amount of money you deposited and any other accumulated interest.
compound interest
The amount paid per month to pay off the loan in the time period of the loan.
Monthly payments
What to use this formula for?
(p+fc) divided by N
Monthly payments
What is a credit report?
A record of an individual's personal credit history.
Is this phrase accurate,Illegal/wrong, and if so why?
"Well if you don't start paying us back right now, i'm going to tell the whole you're a bum. I'm going to hire kids to toilet paper your house.
Illegal/wrong because they insulted, said threats to them.
is an interest rate paid only on the amount of money you deposit.
simple interest
The amount you borrowed and have to pay back.
Principal
Whats the formula for Finance charge
P X R X T
Common forms of credit?
Home mortgage, car loan, credit card.
Is this phrase accurate,Illegal/wrong, and if so why?
" You shouldn't declare bankruptcy over just 238 dollars."
Accurate because it's a small amount to be used and bankruptcy should be used as a very last resort.