Ron Larson
Browse the Topics, Table of Contents, and Index
Follow us:
Twitter Facebook

6.1 Introduction to Lending

6.1 Introduction to Lending
<
>
  • Math Help

    Recall from page 256 that interest calculated only on the principal is simple interest. Also, the rate at which this interest is calculated is the annual percentage rate (APR), or nominal APR. The term effective APR is an APR that, depending on the particular legal definition, can include fees or other charges, and compound interest (see Section 6.2). Note that the APR in Example 6(b) is an effective APR because the calculation includes a service charge.

  • Consumer Suggestion

    Two-thirds of Americans haven't looked at their credit report in the last year. To get your free credit report, visit AnnualCreditReport.com.

  • Checkpoint Solution

    The annual percentage rate for this loan is

  • Comments (1)

    These comments are not screened before publication. Constructive debate about the information on this page is welcome, but personal attacks are not. Please do not post comments that are commercial in nature or that violate copyright. Comments that we regard as obscene, defamatory, or intended to incite violence will be removed. If you find a comment offensive, you may flag it.
    When posting a comment, you agree to our Terms of Use.

     ______      ___       _____   __   __   _____    
|      \\   / _ \\    / ___//  \ \\/ // |  __ \\  
|  --  //  / //\ \\   \___ \\   \ ` //  | |  \ || 
|  --  \\ |  ___  ||  /    //    | ||   | |__/ || 
|______// |_||  |_|| /____//     |_||   |_____//  
`------`  `-`   `-` `-----`      `-`'    -----`
    Showing 1 comments
    Subscribe by RSS
    system user
    Guest   1 decade ago |
    Try the simple interest calculator in the "Tools" button at the top of this page.
    0
©Larson Texts, Inc. All Rights Reserved.