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Ch. 7 Vocabulary

Pre-Algebra Ch. 7

QuestionAnswer
Interest The amount of money charged for borrowing or using money, or the amount of money earned by saving money.
Principal The deposit or the initial amount of an investment or loan
Simple Interest Interest paid only on the principal
Interest Rate The percentage of the balance that an account or investment earns in a fixed period of time
Compound Interest Interest paid on both the principal and the interest earned in previous interest periods
Balance Principal plus the earned interest
Created by: unverferth
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