interest rate 2
simple interest
when interest is paid original principal only .
compound interest
when interest is paid on both the original principal and any accumulated interest
what is capacity ?
The maximum rate of output of a process or a system.
A credit counselor can______.
negotiate with creditors to lower your interest rate
what does the B stand for in compound interest ?
total balance
what is the formula for simple interest
Interest = principal × rate × time
what is the formula for compound interest
FV=PV(1+i)^N
what is a lender
a person who allows another to use his money at a price for a specific amount of time.
A debt collector's job is to ________.
get people to pay back money that they owe
what does Amortization mean?
A way to spreed out loan principal payments over time.
what does Apr stands for
Annual percentage rate
the Amount at the end of the time period
future value
credit history
record of borrower's past loans and credit-related transactions.
Debt collectors must do all of the following except ________.
offer at least three payment plan options
what is a variable interest ?
an interest rate that fluctuates or changes over the life of the loan.
what is the percent that is paid by the borrower?
rate
what are the orders of operation
1. Parentheses
2. Exponents
3. Multiplication/division
4. Addition/subtraction
credit report
The record of your use of credit.
Consumer protection laws ________.
protect people from harmful business practices and debt collection methods
What are two differences between an unsecured loan and a secured loan?
With a secured loan, you give the lender the right to seize the asset you use as collateral should you fail to repay the loan. With an unsecured loan, no assets are required
what is the amount of money in an account. Amount invested
principal
When represented by a decimal, the decimal never stops or forms any repeating pattern
Irrational number
how are credit reports created
based on the information they receive from lenders regarding your account history with lender.
Before anyone declares bankruptcy, he or she must speak with a ________.
credit counselor
what is fixed interest ?
Interest rates that stay the same over an agreed period of the loan.