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Chapter 29

AB
Annual percentage rateThe percentage cost of credit on a yearly basis.
Credit insuranceSpecial insurance that repays the balanceof the amount owed if the borrower dies or becomes disabled prior to the full settlement.
Interest rateThe percentage that is applied to a debt, expressed as a fraction or decimal.
Maturity dateThe date on which a loan must be repaid.
PrincipalThe amount of debt to which the interest is applied.
Simple interestAn expression of interest based on a one-year period of time.
Time factorThe length of time for which interest will be charged.

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