Interest Rates Vocab
the oringinal ammount loaned without interest
What is a principal?
a history of your credit
What is a credit report?
both parties benefit
a legal proceeding carried out to free individuals or businesses from their debts
What is bankruptcy?
Find the interest on the loan if you borrowed $2,000 at 8% for 1 year.
$160
the interest you earn on interest
What is compound interest?
301
What is a credit score
something pledged as security for repayment
What is collateral?
property worth value
What is an asset?
Find the interest on a loan of you borrow $10,000 from the bank at a 9% rate for 5 years.
$4500
the added price for getting a loan
What is interest?
a loan without collateral
What is a unsecured loan?
protection from creditors granted to individuals who legally file for bankruptcy, providing for repayment of debts by a court-approved plan
What is chapter 13?
You go to the bank and borrow $500 at 11% for 2 years, what its the interest paid?
$110
a reward for saving money and a cost for borrowing money
What is simple interest?
Fair Isaac Corporation
What does FICO stand for?
commercial banks, credit uions, and consumer finace companies
What institutions provide credit?
protection from creditors granted to individuals who need help to finance they're payments
What is chapter 7?
You go to the bank and borrow $500 at 11% for 2 years, how will you pay back total?
$610
a loan to buy real estate
What is a morgage?
to be able to afford things in the momment instead of waiting
Why use credit?
they take any assets you may have
What happens when you dont have enough money when filing for bankruptcy?
Find the interest on a loan of $2500 that is borrowed at 9% for 7 months.
$131.25