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24 Cards in this Set
- Front
- Back
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Savings |
The amount of income that is not spent on wants or needs |
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Investing |
The purchasing of assets that may include real estate property, stock, and bond mutual fund, or annuities |
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Annuity |
Retirement fund offered by insurance companies |
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Certificate of deposit |
Deposit a fixed sum of money in a bank for a fixed period of time |
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Mutual funds |
Financial company will sell shares in a fund that is a collection of stock and bonds they are purchasing and selling |
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Simple interest |
Interest earned on the principal amount only |
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Corporate bonds |
Bonds issued by corporations to raise money |
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Logarithmic function |
The inverse function of an exponential growth function that can be used to predict time to reach an investment goal |
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Roth IRA |
A retirement account set up at a financial institution by individuals. Deposits are tax exempt but withdrawals aren't |
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Savings bonds |
Issued by the united States and are usually purchased for half of the face value of the bond |
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Principal |
Initial deposit or investment |
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Liquidity |
Refers to how quickly and easily an asset can be converted to cash |
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401k |
Contributions are automatically deducted from an employee's paycheck each pay period and is used to save for retirement |
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Return on investment |
Amount of money that an investment can earn |
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Savings account |
Usually require a small minimum deposit to open and you can access your money anytime without penalty |
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Municipal bonds |
Bonds issued by state and local governments to complete projects such as building schools |
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Interest |
A percentage amount that will be paid on the money saved |
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IRA |
A retirement account set up at a financial institution by individuals. Taxes are deferred until the money is withdrawn |
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Diversify |
Investing in more than one option |
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$5418 |
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Compound interest |
Earned on both the principal amount and on interest that was previously earned |
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Return on investment |
Amount of money that an investment can earn |
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Log functions |
The inverse function of an exponential growth function that can be used to predict time to reach an investment goal |
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Exponential growth |
Increase in value by repeated multiplication that can be used to model compound interest |
