3-3 Flashcards
0
Q
Principal
A
This is what interest is based on
1
Q
Savings account
A
An account where the bank pays interest on the money deposited into the account
2
Q
Simple interest
A
The interest calculated on principal alone
3
Q
Simple interest formula
A
I=PRT
4
Q
Statement savings account
A
Basic savings account, you can access it at anytime , but there is a lower interest rate
5
Q
Money market account
A
There is a higher interest rate, but the is also a higher minimum balance, greater initial deposit
6
Q
Minimum balance
A
A minimum amount of money needed to be in a savings account
7
Q
Strife ate of deposit CD
A
A certificate that states you have a specific sum on deposit and guarantees the payment of a fixed interest rate until maturity
8
Q
Maturity
A
An interest rate payed to you at a date in the future
