Installment Debt Flashcards
1
Q
what does the term period mean
A
number of payments to be made
2
Q
term payments mean
A
payments to be made each period
3
Q
term interest expense meaning
A
amount of interest taken from each payment. calulated as payable * interest rate * fraction of year
4
Q
term redection of payable
A
payments minus interest
5
Q
payable balance meaning
A
previous payable balance minus reduction of payable
