LOAN COMPONENTS TEACHER ORGANIZER

DEFINITIONS:

Principal --
The amount of the loan.

Interest rate --
The cost of using the money provided by a loan, credit card, or line of credit, usually expressed as a percentage over a period of time.

Term --
The period of time in which the loan must be repaid.

Monthly installment --
The monthly repayment that must be paid on a loan, made up of a portion of the principal plus interest.