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Chapter 5 Flash Card

TermDefinition
Savings Account specific bank account the earns interest, you must make a deposit
deposit currency that you put into an account
withdrawl taking money out of your account
account statement shows the status of your account
interest amount of money paid for the use of a lender's money
simple interest amount paid on original principle
principal the amount of money earning interest
annual interest rate the percent of the principal earned as interest in one year
compound interest earns money not only from original principal, but also on the interest earned during previous interest periods
compound interest table shows the amount of 1.00 for many interest rates and periods
daily compounding when interest is added to your account on a daily basis
annuity when someone deposits and equal amount at equal periods
ordinary annuity occurs when equal deposits are made at the end of each interest period
annuity due occurs when you make regular deposits at the beginning of the interest period
Created by: Rogue X44
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