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Unit # 5 vocab

Savings account vocabulary words

Interest the cost of using $, either paid by banks to their depositors(the people who keep their $ in the bank) or paid by borrowers to the institution that provided their loans.
Compounding Interest Figuring interest earnings on both the original amount and any previous interest that has been added to the balance
Principle The amount of $ originally borrowed or still owned on which interest is charged; or the amount of $ deposited or credited on which interest is earned
Annual percentage yield The amount of interest that a deposit would earn after compounding for 1 year expressed as a percentage
Return earnings from a savings account or profit from an investment
Invest Committing $ to an enterprise in order to earn a return
Liquidity The ability of an asset(some you own) to be quickly and easily converted into cash
Variable changing
Fixed Stays the same
Simple interest Interest earned and paid out to the investor(you)
Created by: mouaX2