| A | B |
|---|
| The total amount that is financed or borrowed, on which interest is computed, is called ________. | principal |
| The ______ rate of interest is charged by banks to their best commercial (business) customers. | prime |
| The true annual rate of interest being charged is called the ______. | annual percentage rate |
| THe portion of purchase price refunded is called ______. | rebate |
| The amount above what you owe, but below your maximum credit limit, is called ______ credit. | unused |
| When computations to determine interest involve the formula I=P*R*T, this is said to be ______ interest. | simple |
| Money paid for the use of someone else's money is called ______. | interest |
| The ______ is always expressed as a percentage in the simple interest equation. | rate |
| The ______ in the simple interest equation is expressed as a fraction of a year. | time |
| A deposit, or ______, is often made when purchasing a large or expensive item to ensure that you will continue to make payments. | down payment |
| The _______ method of computing finance charges first subtracts the monthly payment and then adds the finance charge to get the new balance. | adjusted balance |
| The ______ method of computing finance charges first computes the finance charge and adds it to the balance, and then subtracts the payment to get the new balance. | previous balance |
| The ______ method of computing finance charges is based on the average of credit balances from each day during the month. | average daily balance |
