BU223 Lecture Notes - Lecture 5: Annual Percentage Rate, Finance Charge, Payment Protection Insurance
Document Summary
Choosing a source of credit: the costs of credit alternatives. This chapter identifies major sources of consumer credit chartered banks, trust companies, credit unions, finance companies, life insurance companies, and parents and relatives. Next, in determining cost of credit, it emphasizes the finance charge and the annual percentage rate (apr). Then it shows how the cost of credit can be determined by calculating interest with various interest formulas. It describes the various private and governmental sources that assist consumers with debt problems. Proposals and bankruptcy for those with severe debt problems. Financial and other institutions, the main sources of credit, come in all shapes and sizes. They play an important role in our economy, and they offer a broad range of financial services. Before deciding whether to borrow money, ask yourself these three questions: The cost of the loan will depend on the source of the funds: o.
