| A | B |
|---|
| previous balance method | most expensive way to figure finance charge |
| adjusted balance method | subtracting payment made before computing finance charge |
| unused credit | credit above what you owe, but not up to maximum |
| principal | total amount financed for credit |
| down payment | part of purchase price paid in cash up front |
| rebate | return of part of payment based on record of purchases |
| encrypted | put into code |
| rate | interest expressed as percentage |
| prime rate | interest rate banks offer chosen business customers |
| interest | money paid for use of someone else's money |
| time | expressed as fraction of year |
| annual percentage rate | true annual rate of interest being charged |
| simple interest | =PxRxT finds this |
| average daily balance | method of computing finance charges based on average credit balances each day |
| fixed-rate loan | loan which interest does not change over life of loan |
| garnishment | legal process allowing part of your paycheck to be withheld for debt repayment |
