PL&F Final Flashcards
Principal
the money that you originally agreed to pay back
Annual Percentage Rate
a number that represents the total yearly cost of borrowing money, expressed as a percentage of the principal loan amount.
Rebate
a partial refund to someone who has paid too much money for tax, rent, or utility.
Audit
an official inspection of an individual’s or organization’s accounts, typically by an independent body.
Deductions
an amount that is or may be deducted from something, especially from taxable income or tax to be paid.
Exemption
the process of freeing a person from paying taxes on a specified amount of income for themselves and their dependents.
Gross Income
the sum of all forms of earnings, before any deductions or taxes
Itemized Deduction
an expense that can be subtracted from adjusted gross income to reduce your taxable income and therefore lower the amount of taxes that you owe.
Revenue
income, especially when of a company or organization and of a substantial nature.
Standard Deduction
a dollar amount that taxpayers can deduct from their taxable income to reduce their tax bill
Taxable Income
any gross income earned that is used to calculate the amount of tax you owe
Certificate of Deposit
a certificate issued by a bank to a person depositing money for a specified length of time.
Why do you earn less in a regular savings account than a CD?
CDs generally pay more interest than traditional savings accounts and the annual percentage yield (APY) is fixed
HELOC
Home Equity Line of Credit
CD
Certificate of Deposit
