COMMERCE 4FP3 Chapter Notes - Chapter 6: Student Loans In Canada, Revolving Credit, Finance Charge
16 Feb 2019
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Credit costs money: weigh benefits of buying an item on credit vs waiting until you have saved enough money to pay cash. Two types of credit exist: consumer loans. Loans based on assets, such as gic (ranges typically 3-6%) Medium-priced loans: chartered banks, trust companies, credit unions, 3-8% Finance companies: retailers such as car or appliance dealers, bank credit cards and cash advances, 12-25, no lender in canada is allowed to charge a rate higher than 60% Federal: canada student loans program (cslp: open to both full- and part-time, repayment and management of loans is done through national student loans service centre (nslsc) Lets you compare like with like when shopping for rates. Total interest charge will equal . 09 ( + . 09) ear will be 6. 09% (. 09/100x100) Effective annual percentage rate: calculated using the formula: where m equals number of times per year interest is compounded.
