4.5 Vocab Flashcards
1
Q
principal
A
the original amount of a loan; the total amount borrowed before interest
2
Q
the original amount of a loan; the total amount borrowed before interest
A
principal
3
Q
interest
A
the additional cost a lender charges for borrowing their money
4
Q
the additional cost a lender charges for borrowing their money
A
interest
5
Q
term
A
the amount of time, in months, that you’ll be making payments
6
Q
the amount of time, in months, that you’ll be making payments
A
term
7
Q
depreciation
A
the loss of value of an asset over time
8
Q
the loss of value of an asset over time
A
depreciation
9
Q
negative equity
A
when the value of an asset falls below what is owed on it
10
Q
when the value of an asset falls below what is owed on it
A
negative equity
