knowledge
People making an application for a loan will be informed of the loan interest, the price of using other’s money. It is usually a percentage of the total amount of the loan.
application
Explain the loan payment which should include the par value and accrued interest. Calculate the interest rate with the amount of money and interest given. Calculate the interest with the amount of money and interest rate given.
knowledge
The longer it takes to repay the loan, the higher the interest rate is, which leads to a higher total amount of interest.
application
Calculate the borrowing costs when conditions, such as interest rate and term of borrowing, change.
knowledge
The money paid by credit card is a kind of loan provided by banks that issue the cards to consumers, the interest rate of which is usually higher than other loans. Banks may charge a fee of using the cards.
application
Check your credit card bill and identify the interest rate and fees.
knowledge
If people make payment in credit card and fail to pay off the debt before it is due, they will face a rather high price. The loan made by credit card should be repaid monthly. The card owner can avoid a high interest by repaying before the deadline set by financial institutions.
application
Suppose people buy expensive things in instalments and repay only the minimum amount of money that is required, find out the interest paid in one year and how much is to be paid after one year.
knowledge
Various financial institutions and shops offer consumer loans, which are different in rate.
application
Compare the loan rate and the credit period between commercial banks and saving institutions.
knowledge
The loan rate varies with the loan market.
application
Explain why mortgage rate goes down when people are unwilling to buy estates.
knowledge
Money lenders will ask for different amount of interest according to the borrower’s default risk. The higher it is, the higher the interest is.
application
Suppose you work in a bank, make respective assessments for three money borrowers with different levels of credit and decide whether to loan money to them. Write a message to inform them of the bank’s decision and give out your reasons.
knowledge
People can pay tuition and purchase estates with credit, which enables the big expenditures to be amortized in a long period.
application
Analyze the costs and benefits of using credit to pay for a new smartphone, jeans, and tuition.