Access http://www.federalreserve.gov/pubs/
consumerhdbk/cost.htm
Based on your reading, respond to the following:
- Summarize what you learned about the cost of credit
from this reading.
- How do APR, the length of the loan, and charges,
such as late fees, affect the cost of credit?
- Explain open-end credit and the different ways
open-end finance charges are calculated.
- What are the similarities and differences between
open-end and closed-end leases?
- What advice would you give a friend who was interested
in borrowing a sizeable sum of money to make an important
purchase?
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