5.4 & 5.5 Vocabulary

Front

The percent of the principal earned as interest in one year is called the _.

Back

annual interest rate

Front

The amount of money earning interest in a savings account.

Back

Principal

Front

A specific type of bank account that earns interest.

Back

savings account

Front

Earned on original principal plus interest earned during previous periods.

Back

compound interest

Front

The money you put in a bank, credit union, or brokerage firm.

Back

deposit

Front

Based on three factors: principal, rate, and time.

Back

simple interest

Front

The amount of money paid for the use of a lender's money.

Back

interest

Front

The money you take out of your bank, credit union, or brokerage firm.

Back

withdrawal