AP Economics Chapter 4 and 6 notes
Subject:
Economics [1]
Tags:
economics [3]
Finance [4]
Banking [5]
Debt [7]
Credit card [9]
Bond [10]
Interest rate [11]
Business [14]
Chapter 4 Notes, Economics Sect 1 Credit: the receiving of funds either directly or indirectly to buy goods and services today with the promise to pay for them in the future. The amount owed ? the debt ? is equal to the principal plus interest Principal: the amount originally borrowed in a loan Interest: the amount the borrower must pay for the use of someone else?s (the bank?s, credit union?s, stores, etc.) funds. Installment Debt: one of the most common types of debt today. Consumers repay this type of loan with equal payments, or installments, over a period of time. Ex. 36 equal payments over 36 months Durable Goods: manufactured items that last longer than 3 years, on an installment plan. Many are bought on an installment plan.