Chapter Review

Interest added to the principal of an account, so that the added interest also earns interest going forward.

The lending of money, goods, or services with the expectation of future payment.

A small plastic card issued by a bank or business allowing the holder to purchase goods or services on credit. A form of revolving credit.

A number assigned to a person that indicates to lenders their capacity to repay a loan.

A sum of money placed or kept in a bank account, usually to gain interest.

An initial payment made when something is bought on credit.

A line of credit made available to cover overdrafting a checking account.

The amount charged on top of the principal by a lender to a borrower for the use of assets.

The lowest amount of money that you are required to pay on a debt each month.

The amount a borrower is required to pay each month until a debt is paid off.

The amount borrowed or still owed on loan.

A sum of money charged by school, college or university for lodging and food.

A payment made to support a student’s education, awarded on the basis of academic or other achievement.

Refers to the length of time that you have to repay, or to specific features in your loan (like rates, required payments, and more).

A sum of money charged for teaching or instruction by a school, college, or university.