Details Title: Banking Description: Terminology for the Banking unit Total Flash Cards: 17 Created: 08/12/2009 17:25:03		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Finance Flashcards
Cards in this set: Term simple interest Definition the type of interest that is calculated on the principal only Term principal Definition the amount of money that you borrow or invest initially Term compound interest Definition The type of interest that is calculated each period on the principal plus the interest that has accrued during prior periods. Term future value Definition The amount to which an investment will grow. Term interest Definition The cost of borrowing money or the amount of money earned on an investment. Term percentage rate Definition The amount of money (rate) above the principal that a borrower will pay on a loan. Term maturity date Definition The date on which an obligation must be repaid. Term APR Definition The interest rate on a loan based on a year. Term Rule of 72 Definition A rule that allows investors to calculate how long it will take their money to double by dividing 72 by their expected return. Term yield Definition The amount of return on an investment. Term APY Definition A tool for evaluating how much an investment returns each year. Term deposit Definition Money you put into a savings or checking account. Term withdrawal Definition Money taken out of a savings or checking account. Term account balance Definition Total amount of money that is in an account. Term simple interest formula Definition I = P*r*t I = interest P= principal r= percentage rate as a decimal t = time in years Term Compound Interest Formula Definition A=P(1+r/n)nt A=total amount P=principal r=percentage rate as a decimal n=number of compoundings per year t=time in years Term Continuous Compound Interest Formula Definition A=Pert A=Total Amount P=principal r=percentage rate as a decimal t=time in years