Term
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Definition
| the type of interest that is calculated on the principal only |
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Term
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Definition
| the amount of money that you borrow or invest initially |
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Term
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Definition
| The type of interest that is calculated each period on the principal plus the interest that has accrued during prior periods. |
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Term
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Definition
| The amount to which an investment will grow. |
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Term
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Definition
| The cost of borrowing money or the amount of money earned on an investment. |
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Term
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Definition
| The amount of money (rate) above the principal that a borrower will pay on a loan. |
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Term
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Definition
| The date on which an obligation must be repaid. |
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Term
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Definition
| The interest rate on a loan based on a year. |
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Term
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Definition
A rule that allows investors to calculate how long it will take their money to double by dividing 72 by their expected return.
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Term
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Definition
| The amount of return on an investment. |
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Term
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Definition
| A tool for evaluating how much an investment returns each year. |
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Term
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Definition
| Money you put into a savings or checking account. |
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Term
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Definition
| Money taken out of a savings or checking account. |
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Term
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Definition
| Total amount of money that is in an account. |
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Term
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Definition
I = P*r*t
I = interest
P= principal
r= percentage rate as a decimal
t = time in years |
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Term
| Compound Interest Formula |
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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 |
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Term
| Continuous Compound Interest Formula |
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Definition
A=Pert
A=Total Amount
P=principal
r=percentage rate as a decimal
t=time in years |
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