2.3 Cengage

Front

What is a statement savings account?

Back

An account where a consumer receives a monthly statement showing all activity, including deposits, interest earned, and any fees.

Front

What is an arithmetic sequence?

Back

A progression of numbers in which the difference between any two consecutive terms is a constant.

Front

What is an interest rate?

Back

The percentage rate that is paid by a bank on money that is in some accounts.

Front

What is a minimum balance?

Back

A certain amount of money that must be kept in an account as required by that particular bank.

Front

What is a checking account?

Back

An account that allows for numerous withdrawals and deposits, and typically comes with checks and a debit card.

Front

What is a savings account?

Back

An account that earns interest on the money deposited, typically with limited withdrawals.

Front

What is a money market account?

Back

A type of savings account that typically earns a higher interest rate and may require a higher minimum balance.

Front

What is simple interest?

Back

Interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Front

What is compound interest?

Back

Interest on interest; it is calculated on the initial principal and also on the accumulated interest from previous periods.

Front

What is the annual percentage rate (APR)?

Back

The annual rate charged for borrowing or earned through an investment, expressed as a single percentage number.