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Definition
| interest paid on the principal alone |
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Term
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Definition
| interest calculated on both the principal and the accrued interest |
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Term
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Definition
| A formula used to determine the amount of time it will take for invested money to double at a given compound interest rate, which is 72 divided by the interest rate |
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Term
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Definition
| Interest paid on bonds issued by states or municipalities that is tax-free for federal income tax purposes |
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Term
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Definition
| Interest that is not currently subject to income taxation |
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Term
| annual percentage yield (APY) |
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Definition
| Annual percentage yield (APY) is a normalized representation of an interest rate based on a compounding period of one year |
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Term
| certificate of deposit (CD) |
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Definition
| A certificate issued by a bank to a person depositing money for a specified length of time |
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