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PFM Chapter 7

Across
A loan that is repaid in a series of fixed, scheduled payments rather than a lump sum
A method of calculating finance charges in which interest in computed & then subtracted from the principal, with the remainder being disbursed to the borrower
A type of life insurance in which the coverage decreases at the same rate as the loan balance
Also known as the rule of 78s
Loans made for specific purposes using formally negotiated contracts that specify the borrowing terms & repayment
A legal claim permitting the lender, in case the borrower defaults, to liquidate the items serving as collateral to satisfy the obligation
Down
A method of computing financing charges in which interest is charged on the actual loan balance outstanding
The process of paying off a loan by taking out another loan
The use of single-payment loan to finance a purchase or pay bills where the funds to be used for repayment
Avg Annual Finance Charge / Avg Loan Balance Outstanding
A method of calculating interest by computing finance charges on the original loan balance & then adding the interest to that balance
Direct & Federal Family Education Loans
Mortgage on personal property given as security for the payment of an obligation
An accumulation of savings in an insurance policy that can be used as a source of loan collateral
An item of value used to secure the principal portion of a loan