AMDM Unit 6 Vocabulary Flashcard

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Interest

Back

Amount paid to or by an individual for the use of money.

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Income tax

Back

Government charges for money earned.

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Checking Account

Back

Bank account that holds your money and allows you to withdraw to pay bills.

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Annually

Back

An event that occurs once a year.

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Savings Account

Back

Investment with low interest rates but unlimited access for withdrawal.

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Principal

Back

The original sum of money borrowed or invested, excluding any interest or dividends.

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Money Market Account

Back

A type of savings account that typically earns a higher interest rate and has limited check-writing ability.

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Future Value

Back

The value of an investment at a specific date in the future, based on an assumed rate of growth.

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Initial Value

Back

The starting amount of money before any interest or growth is applied.

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Withdrawal

Back

The act of taking money out of a bank account.