The Cost of Credit

Front

What is the total repayment amount for a loan of $157 per month over 18 months?

Back

$2826

Front

If Courtney took out a $5,000 loan and paid back $6,700, how much did she pay in interest?

Back

$1,700

Front

What is the total repayment amount for a loan of $1,000 per month over 6 years?

Back

$72,000

Front

What is the term for the act of paying off debt?

Back

Repayment

Front

If Courtney took out an $800 loan and paid back $1,200, how much did she pay in interest?

Back

$400

Front

What is the formula to calculate total repayment amount for a loan?

Back

Total Repayment = Monthly Payment x Number of Months

Front

Define 'interest' in the context of loans.

Back

Interest is the cost of borrowing money, usually expressed as a percentage of the loan amount.

Front

What does 'loan term' refer to?

Back

Loan term refers to the duration over which the loan must be repaid.

Front

How do you calculate the interest paid on a loan?

Back

Interest Paid = Total Repayment - Principal Amount.

Front

What is a 'principal amount' in a loan?

Back

The principal amount is the original sum of money borrowed.