This document discusses consumer credit fundamentals. It covers different types of consumer credit like installment loans, charge accounts, and credit cards. It describes benefits of using credit like convenience and savings, but also disadvantages like higher prices and overspending. The document also discusses calculating interest on loans, the credit application process, credit reports from bureaus, common credit documents, and regulations that protect consumers' credit rights.

1. Consumer Credit 18-1 Credit Fundamentals 18-2 Cost of Credit 18-3 Credit Application and Documents 18-4 Protection of Credit Rights 18

18. FINDING INTEREST Chapter 18 Slide Principal, P Amount of the loan Interest Rate, R Percent of interest charged or earned Time, T Length of time for which interest will be charged, usually expressed in years or parts of a year

19. SIMPLE INTEREST Chapter 18 Slide Interest  Principal  Rate  Time I  P  R  T

20. SIMPLE INTEREST EXAMPLES Chapter 18 Slide I  P  R  T One year I  $100  .12  1  $12 Two years I  $100  .12  2  $24 One month I  $100  .12  1/12  $1 60 days I  $100  .12  60/360  $2

24. DECREASING LOAN PAYMENTS Chapter 18 Slide

25. LEVEL LOAN PAYMENTS Chapter 18 Slide