Which term refers to the total amount borrowed from a credit account that has not yet been paid back, including interest?

Which term refers to the total amount borrowed from a credit account that has not yet been paid back, including interest?

• A. Credit
• B. Installment credit
• C. Unpaid account balance
• D. Credit limit

Answer: (C)

The amount still owed on a credit account, including interest, is the unpaid account balance. This figure represents everything you borrowed that you haven’t paid back yet, plus the interest (and any fees) that has accumulated. It’s what you would owe if you stopped making payments right now. It’s different from the credit limit, which is the maximum you’re allowed to borrow, and from the concept of installment credit, which is just a type of loan. Using an example: if you charged a thousand dollars and have paid back some but not all, with interest added, the remaining amount you owe is the unpaid account balance. In many cases this is also referred to as the outstanding balance, but the key idea is the total you still owe.

The amount still owed on a credit account, including interest, is the unpaid account balance. This figure represents everything you borrowed that you haven’t paid back yet, plus the interest (and any fees) that has accumulated. It’s what you would owe if you stopped making payments right now. It’s different from the credit limit, which is the maximum you’re allowed to borrow, and from the concept of installment credit, which is just a type of loan. Using an example: if you charged a thousand dollars and have paid back some but not all, with interest added, the remaining amount you owe is the unpaid account balance. In many cases this is also referred to as the outstanding balance, but the key idea is the total you still owe.