Chapter 8 Loans
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Chapter Review
Build Your Vocabulary
As you progress through this course, develop a personal glossary of fi nancial
literacy terms and add it to your portfolio. This will help you build your fi nancial
literacy vocabulary. Write out a defi nition for each of the following terms, and
add it to your personal glossary.
single-payment loan
principal
term
promissory note
collateral
lien
ordinary interest method
exact interest method
installment loan
level payment plan
amortization table
down payment
amount fi nanced
early repayment
payday loan
title
title loan
pawnshop
foreclosure
bankrupt
bankruptcy
Free Application for Federal Student
Aid (FAFSA)
grant
scholarship
merit-based scholarship
529 plan
Teamwork
Working in teams, conduct research on the Internet to determine the costs
of several diff erent types of loans from diff erent lending institutions. Create a
table of the information. Share with the class any conclusions you can draw from
the data you collected.
Review Your Math Skills
Practice and build on the math skills that you have learned.
1. Simplify fractions. Example:
16
32
=
1
2
A.
22
121
= B.
49
105
=
C.
18
27
= D.
58
87
=