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15 Cards in this Set
- Front
- Back
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Saving Account |
A demand deposit account designed for the accumulation of money in a safe place for future use. |
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Principal |
Sum of money set aside on which interest is paid. |
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Simple Interest |
Interest computed on principal once during a certain time period. |
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Compound Interest |
Interest earned on both principal and previously earned interest. |
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Annuity |
A fixed amount set aside on a regular basis over time. |
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Rule of 72 |
A quick formula for computing how long it will take to double money invested at a given interest rate. |
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Money Market Account |
A type of savings account that earns the market rate of interest on the money deposited. |
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Certificate Of Deposit (CD) |
A time deposit that pays a fixed rate of interest for a specified length of time. |
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U.S. Savings Bond |
A discount bond issued by the federal government that pays a guaranteed minimum rate of interest. |
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Maturity Value |
A bond's future value as stated on its face. |
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Formula of interest |
Interest(I)=Principle(P)*Rate(R)*Time(T) |
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Formula of Rule of 72
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Simply divide the annual interest rate into 72. |
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What is an individual retirement account? |
An IRA allows individuals to deposit money into an account during their working years and to delay paying taxes on the money and the interest earned until it is withdrawn during retirement. |
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Where are the places you can save you money? |
Online-only banks, brokerage firms, and international banks. |
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What are the methods of saving money? |
Money market accounts, certificates of deposit(CD), U.S. savings bonds and individual retirement accounts. |
