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Chapter 6

QuestionAnswer
annual percentage yield the actual interest rate an account pays, stated on a yearly basis with the compound interest included
certificate of deposit a time deposit that earns a fixed rate of interest for a specified length of time
compound interest interest paid on the original principal plus accumulated interest
liquidity a measure of how quickly you can get your cash without loss of value
money market account a type of savings account that offers a more competitive interest rate than a regular savings account.
simple interest interest computed only on the amount borrowed without compounding
Created by: raymondd
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