ESL Podcast 352 - Understanding Interest Rates
interest rate - the percentage of extra money that has to be paid back when one borrows money from a bank or other financial institution
As interest rates rise, people become less able to borrow money.
mortgage - a loan used to buy a home; money that is borrowed to buy a home
They took out a $300,000 mortgage to buy a very nice home.
in general terms - generally; broadly; not specifically; not in detail; overall
In general terms, it is easier for tall players to get on this basketball team than shorter players.
to borrow - to ask for and receive money from a bank or person, agreeing to pay back that money, plus extra (interest) in a specific period of time
The Hagstroms want to borrow $7,500 to buy a new car.
to calculate - to use numbers and mathematical operations (add, subtract, multiply, divide, etc.) to find the total amount of something
Your weight in pounds is calculated by multiplying your weight in kilos by 2.2.
annual rate - the percentage by which something changes in one year
Sales are growing at an annual rate of 19%.
percent - per 100; a number that is divided by 100; a number with a percentage sign (%) after it
- What percent of 50 is 30?
- It's sixty percent (60%).
monthly payment - the amount of money that must be paid at the same time each month
Tricia makes three monthly payments: $975 for rent, $90 for phone and Internet, and $50 for her gym membership.
term - duration; the amount of time that a loan or agreement is valid
Most home loans have a 30-year term.
principal - the amount of money that is borrowed; money owed that does not include the interest
Each month they pay off a little bit of their principal, but most of the payment is used for interest.
lender - an institution or person that lends money to people; an institution or person from whom money is borrowed
In this town, three lenders specialize in making small business loans.
to assess - to charge and collect an amount of money
If you don't return your books on time, the library will assess a late fee of $1 per day per book.
to process - to handle a document officially; to make sure that an application or other type of document is reviewed and approved appropriately
The university processes thousands of student applications each year.
the fine print - the small writing at the end of a contract that is difficult to read and often includes or hides many important details
When they read the fine print, they were shocked to learn that they would have to pay $300 to cancel their contract with the cell phone company.
to go down that road - to make a decision to do something and then do it; to do something in a particular way when one has other choices
Guillermo bought an old car that didn't work very well. The next time he needed to buy a car, he said, "I'll never go down that road again! From now on, I'm buying only new cars."
to default - to not make a payment that one is supposed to make, especially on a loan
When they defaulted on their loan for four months in a row, the bank took away their house.
credit score - a number on a report that shows how much money one owes to other people and businesses, and whether one makes payments on time
If you pay your credit card bills on time, you should have a good credit score.
course of action - a plan for what one should or will do; what one plans to do
I think the best course of action is for us to wait quietly and see what happens next.