TERM
PRINCIPAL
APR (Annual Percentage Rate)
"COST"
FINANCE CHARGE
AMORTIZATION
Any fee or interest paid on borrowed money
The total amount paid on a debt (principal + interest)
The interest rate charged on borrowed money
The fixed amount of time to repay a loan
Gradually paying off a loan over a set period of time, such as monthly payments, in order to spread out the “cost” of the loan
The original amount borrowed or the amount left to pay on the original loan
