Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
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Expert Solution & Answer
Chapter 4.1, Problem 1R
Solution
Significance of given terms are to be explained.
Credit: Credit is defined as the amount taken by the borrower to buy goods and services with a promise to pay the amount to the lender in future. Credit is also known as the credit worthiness of the individual.
Principal: Principal has many financial definitions. It is defined as the actual amount of money borrowed in a loan by the individual.
Interest: Interest is the amount which the borrower must pay to the sum borrowed by the individual. Interest is classified in two types: Simple interest and compound interest.
Installment debt: Installment debt is a type of loan which is repaid by the borrower in equal installment over a specific period of time. For example, if a person taken loan for 24 months then 24 equal installments will be paid for 24 months.
Durable goods: Durable goods are the goods that can be consumed for a longer period of time. These products last longer than three years or more. These goods are somehow expensive also. example of durable goods are Automobiles, refrigerators and other appliances.
Mortgage: Mortgage is a debt which the lender has provided the owner with funds for buying the property. In respect to this, the owner will repay the loan to the lender within a specific time period.
Chapter 4 Solutions
Economics Today and Tomorrow, Student Edition
Ch. 4.1 - Prob. 1RCh. 4.1 - Prob. 2RCh. 4.1 - Prob. 3RCh. 4.1 - Prob. 4RCh. 4.1 - Prob. 5RCh. 4.1 - Prob. 6RCh. 4.2 - Prob. 1RCh. 4.2 - Prob. 2RCh. 4.2 - Prob. 3RCh. 4.2 - Prob. 4R
Ch. 4.2 - Prob. 5RCh. 4.3 - Prob. 1RCh. 4.3 - Prob. 3RCh. 4.3 - Prob. 4RCh. 4.3 - Prob. 5RCh. 4.4 - Prob. 1RCh. 4.4 - Prob. 2RCh. 4.4 - Prob. 3RCh. 4.4 - Prob. 4RCh. 4.4 - Prob. 5RCh. 4 - Prob. 1AACh. 4 - Prob. 2AACh. 4 - Prob. 3AACh. 4 - Prob. 4AACh. 4 - Prob. 5AACh. 4 - Prob. 6AACh. 4 - Prob. 7AACh. 4 - Prob. 8AACh. 4 - Prob. 9AACh. 4 - Prob. 10AACh. 4 - Prob. 11AACh. 4 - Prob. 12AACh. 4 - Prob. 13AACh. 4 - Prob. 14AACh. 4 - Prob. 15AACh. 4 - Prob. 16AACh. 4 - Prob. 17AACh. 4 - Prob. 18AACh. 4 - Prob. 19AACh. 4 - Prob. 20AACh. 4 - Prob. 21AACh. 4 - Prob. 22AACh. 4 - Prob. 23AACh. 4 - Prob. 24AACh. 4 - Prob. 25AACh. 4 - Prob. 26AACh. 4 - Prob. 27AACh. 4 - Prob. 28AACh. 4 - Prob. 29AA
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