Personal Finance

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

Cost of credit expressed as a yearly percentage: Mortgage, Principal, APR, Finance company

Back

APR

Front

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

Back

interest

Front

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

Back

Retirement

Front

What does CD stand for when talking about investments?

Back

Certificate of Deposit

Front

A mutual fund allows investments to be ___________.

Back

Diversified

Front

This type of retirement account offered by employers to their employees allows them to set aside tax-deferred income. Sometimes employers will even match the employee contribution up to a certain amount.

Back

401(k)

Front

This type of schedule or table lists all payments of a loan, and tells the borrower how much of each payment goes toward the principal, as well as how much they will pay in interest over the life of the loan.

Back

amortization

Front

This term refers to the original amount of a loan OR the original amount of money invested.

Back

Principal

Front

This is just a savings account with a slightly higher interest rate because the saver commits to a longer saving period for a set amount deposited.

Back

C.D.