Personal Finance Unit 5

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.

• compound
• sinking
• annual

Cost of credit expressed as a yearly percentage 

• Mortgage
• Principal
• APR
• Finance company

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

• interest
• savings plan
• scarce
• purchase

Amount of money originally borrowed

• Mortgage
• Principal 
• Annual percentage rate (APR)
• Finance company

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

• Retirement
• College Savings
• Low Interest
• Stock

What does CD stand for when talking about investments?

• Calculated Dividend
• Certificate of Deposit
• Central Dollar
• Current Deposit

A mutual fund allows investments to be ___________.

• Secured
• Guaranteed
• Diversified
• Minimal

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.

• mutual fund
• 401(k)
• Roth IRA
• savings

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.

• delinquency
• amortization
• liquidity

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

• Principal
• Interest
• Rebate
• Fixed Rate