APF Final Exam review 2

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

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

• Retirement

• College Savings

• Low Interest

• Stock

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

• Principal

• Interest

• Rebate

• Fixed Rate

This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.

• compound interest

• emergency fund

• APR

• debt

The first step of responsible savings; $500 for teens; $1,000 for adults

• mutual fund

• emergency fund

• sinking fund

The availability of money; how quickly you can convert it into cash in your hand is its _______.

• diversity

• liquidity

• yield

• gratuity