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Chapter 8

TermDefinition
Bond A written promise to pay a debt by a specified date
Certificate of Deposit A deposit in a savings institution that earns a fixed interest rate for a specified period of time
Compound Interest Interest paid on the principal and also on previously earned interest, assuming that the interest is left in the account
Dividend Portion of a company's profits paid to the owners
Principal (Savings) Money on deposit
Simple Interest Interest paid one time per year at the end of the year on the average balance in the savings account
Created by: bruhag1
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