FLASHCARD: Ch. 3.1 - 3.2 (Math for Finance)

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What is a down payment?

Back

A down payment is an initial payment made when something is bought on credit, typically expressed as a percentage of the total purchase price.

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Calculate the down payment for rims costing $16,750 with a 30% down payment requirement.

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$5,025

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What do you call someone who uses credit to pay for things? (6-Letter Term)

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Debtor

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Who can help you meet the requirements of a loan if you fail to do so?

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Cosigner

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What moral principle is credit based on?

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Honesty

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How many monthly payments are there in a 30-year loan?

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360 payments

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How many monthly payments are there in a 15-year loan?

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180 payments

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What is the difference in monthly payments between a 30-year loan and a 15-year loan?

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180 payments

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Define 'credit score'.

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A credit score is a numerical expression of a person's creditworthiness, based on their credit history.

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What is an installment plan?

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An installment plan is a payment plan that allows a buyer to pay for a purchase over time in fixed amounts.