The Total Dollar Amount You Pay to Use Credit Is

question 12

Multiple Choice

The total dollar amount you pay to use credit is called the:

• A)finance charge.
• B)annual percentage rate.
• C)price of the good/service purchased.
• D)amortized rebate.
• E)interest ratE.

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Definitions:

Quarterly

Occurring or done every three months.

Compounded

A method of calculating interest where previously earned interest is added to the principal amount, and then future interest is calculated on the new total.

Quarterly

Occurring every three months or four times a year.

Annuity

An investment vehicle that provides a consistent series of disbursements to a person, often employed in retirement planning.