Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
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Chapter 4, Problem 4AA
To determine

To analyze the option best suited for the blank.

Expert Solution & Answer
Check Mark

Explanation of Solution

The term loan represents the type of financing facility in which an amount of funding is lent to the next party in return for a future return of the value or principal amount. I

n certain situations, the creditor often applies interest and/or loan costs to the principal amount that the borrower must return in addition to the principal amount. Loans may be for a fixed, one-time sum, or may be available as an open-ended credit facility up to a specified cap.

A person in debt should concentrate on paying off high- interest credit cards first.

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