Quiz Vocab Flashcards
1
Q
Simple interest
A
The amount of interest earned on an investment or paid on a loan based on the original amount and the simple interest rate
2
Q
Compound interest
A
Interest that uses the principal and any previously earned interest. The interest owed when compounding is higher than the interest owed using the simple interest method.
3
Q
Principal
A
Starting amount of money
4
Q
Future value
A
The value of money at the end of a set amount of time
5
Q
Rate
A
The interest applied
6
Q
Time
A
The length of time in years
