Using terms from the following list, complete the sentences below. Write the terms you have chosen in the space provided.

Finance charge

Annual percentage rate

Simple interest

Minimum monthly payment

Add-on interest method

a.  The _______ is the cost of credit on a yearly basis expressed as a percentage.

b.  The total amount of money paid to use credit is the _________

c.  The smallest amount a borrower can pay on a credit card bill and remain a borrower in good standing is the            ______________

d.  With the ___________  interest is calculated on the full amount of the original principal, no matter how often you make payments.

e. ______________  is the interest computed only on the principal, the amount that you borrow.