FINA 385 Lecture Notes - Lecture 6: Student Loans In Canada, Annual Percentage Rate, Revolving Credit
26 May 2016
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Weigh the benefits of buying an item on credit versus waiting until you have saved enough to pay cash. You do not need or really want a product that will require financing. Easy access to installment loans and credit cards encourage consumers to make purchases they later regret. When you can afford to pay cash. There are two sources of consumer credit consumer or installment loans (cheaper) and revolving credit (more convenient). Lower interest rate and repayment only upon graduation. The federal government also offers the canada student grants. Independent provincial programs or programs integrated with the. Determine the effective cost of borrowing by considering the quoted rate, the number of compounding periods, the timing of interest payments and other service charges. Lesson 6: choosing a source of credit o o. Apr is the interest rate quoted on a loan. It may be compounded once a year, or more frequently. Compounding defines how frequently interest is charged on a loan.
