Personal Finance Review

Front

The cost of borrowed money, usually expressed as a percentage.

Back

interest

Front

This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.

Back

compound

Front

Principal

Back

The original amount of a loan OR the original amount of money invested.

Front

What is a credit score?

Back

A three-digit numerical rating that reflects how likely you are to repay your debt.

Front

What is a budget?

Back

A plan for how money will be used

Front

What is this? Options: Credit history, Credit card, Credit score, None of the above

Back

Credit score

Front

401(k), IRA, and Roth IRA are all examples of a __________ account.

Back

Retirement

Front

The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns

Back

1040

Front

What is the relationship between risk and return when it comes to investments?

Back

Lower Risk = Lower Reward