WEEK 10: MORTGAGE, AMORTIZATION, INTEREST & COMMISSIONS Flashcards
1
Q
a type of loan that is secured with real estate property or personal property
A
MORTGAGE
2
Q
2 COMPONENTS OF MOTGAGE
A
- COLATERAL
- DOWNPAYMENT
3
Q
the property that is held as security on a mortgage
A
COLATERAL
4
Q
the 1st payment when you buy something with an agreement to pay the rest later
A
DOWNPAYMENT
5
Q
refers to the installment payment of the loan
A
AMORTIZATION
6
Q
SA AMORTIZATION ITO
A STANDS FOR
A
MONTHLY PAYMENT / AMORTIZATION
7
Q
SA AMORTIZATION ITO
P STANDS FOR
A
LOAN’S INITIAL AMOUNT
8
Q
SA AMORTIZATION ITO
i STANDS FOR
A
MONTHLY INTEREST RATE
9
Q
SA AMORTIZATION ITO
n STANDS FOR
A
TOTAL NO. OF PAYMENTS
10
Q
the charge or fee for using someone’s money
A
INTEREST
11
Q
2 TYPES OF INTEREST
A
- SIMPLE INTEREST
- COMPOUND INTEREST
12
Q
interest on the principal only
A
SIMPLE INTEREST
13
Q
interest on the principal and previous interest or outstanding interest
A
COMPOUND INTEREST
