Shared Flashcard Set

Details

module 4
n/a
15
Finance
11th Grade
04/10/2013

Additional Finance Flashcards

 


 

Cards

Term
Saving
Definition
is depositing your money into a financial institution for safe keeping and to earn interest
Term
Investing
Definition
is buying something with the expectation that it will make money for you.
Term
Interest
Definition
Interest is an amount paid to use someone's money usually a percentage of the amount deposited (aka principle).
Term
Windfalls
Definition

Examples:

work bonuses

inheritances

tax refunds

unexpected chuncks of money

Term
Easy tracking
Definition
You can check the amount at any time
Term
Savings accounts
Definition

little risk

small amount of interest

Term
money market deposit account
Definition

low risk

higher interest than saving accounts

Term
certificate of deposit
Definition

low risk

insured

higher interests than money market

interest uis the same over a long span of time

Term
U.S. Savings bond
Definition

set prices ($25, $30)

fixed intrerest over a set of years (30 years)

Term
compounding
Definition
the more often your money is earning interest the faster and bigger your account will grow.
Term
simple interest rate formula
Definition

I=P x R x T

I- interest

P- principle(original amount)

R- interest rate

T- time

Term
annual percentage yeild
Definition
the actual return on an investment when compound interest is taken into account
Term
compound interest formula
Definition

A=P(1+r/n)^nt

A- final amount

P-prinicple

r- annual interest rate

n- number of times interest is compounded

t- time

Term
inflation
Definition

lose of money value

rises food gas clothes prices

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