2022 Unit 4: (PF) Investment & Credit

anything that serves as a medium of exchange, a unit of account, and a store of value

• money

• credit

• debit

• cryptocurrency

Lender

• the amount of money lended of borrowed

• A person or an instution that need money

• a person or an institution you can borrow money from

• a person or an institution with some money saved

principal

• a person or an institution you can borrow money from

• A manager of a school

• a person or an institution with some money saved

• The amount of money lended of borrowed

Interest rate is

• The price of goods and services

• Price of money - tells you how high the cost of borrowing is, or high the rewards are for saving.

• The price you have to pay when you want to buy sth cash

• Not very important number you will see when borrowing money

APR stands for:

• Annual Percentage Rate

• Annual Percent Reality

• Absent Person Report

• Aging Placement Reach

Why is compound interest more beneficial than simple interest? (hint: choose 2 correct answers)

• Your money grows faster when it is compounded

• You earn interest on your interest

• Fees for compound interest are greater than simple interest

• Compound interest is hard to calculate, so fewer use it

What is a stock?

• A loan an investor makes to a company or government that pays interest over time.
• A share of ownership in a company
• A collection of investments sold as a package.
• An option to purchase something in the future at todays price.

Employer sponsored retirement savings plan.

• 401K
• IRA
• Individual Retirement Account
• Roth IRA

This investment tool is an individual retirement account that when depositing, it is taxed each year and the full amount is tax free at 65 is called

• IRA

• Roth IRA

• Stocks

• Mutual Funds

Your credit score will be lowered if you

• Miss a loan payment

• Take out a loan

• Buy a house

• Go to college