ECONOMICS
ECONOMIC INSTITUTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Payday loan
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Title loan
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Rent-to-own loan
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None of the above
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Detailed explanation-1: -Amortized Loan: A loan to be repaid, by a series of regular installments of principal and interest, that are equal or nearly equal, without any special balloon payment prior to maturity.
Detailed explanation-2: -Interest is the monetary charge for borrowing money-generally expressed as a percentage, such as an annual percentage rate (APR). Interest may be earned by lenders for the use of their funds or paid by borrowers for the use of those funds.
Detailed explanation-3: -Interest. Interest is the amount of money a financial institution charges for letting you use its money. The rate of interest can be either fixed or variable. • Fixed rate means the interest rate stays the same throughout the term of the loan.
Detailed explanation-4: -A lender is an individual, a public or private group, or a financial institution that makes funds available to a person or business with the expectation that the funds will be repaid.