Savings/Investing Flashcards
1
Q
Interest
A
Amount of money paid for using someone else’s money
2
Q
Simple Interest
A
fee charged for borrowing money is a fixed yearly percentage of the amount borrowed (called principal)
P x R x T (Principal x Rate x Time (yr))
Ex.
P: $5,000
R: 4%
T: 10 years
$5,000 x 4 x 10 = $2,000 interest earned
3
Q
Compound
A
4
Q
Rule of 72
A
5
Q
Traditional Savings Account
A
6
Q
Certificate of Deposit (CD)
A
7
Q
Savings Bond
A
8
Q
Bank
A
9
Q
Credit Union
A
10
Q
Liquid Asset
A
11
Q
Saving
A
12
Q
Investing
A
13
Q
Minimum Balance
A
14
Q
Risk vs. Return
A
15
Q
Stocks
A
