Term
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Definition
| Interest paid on the pricipal 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
| Tax exempt status may provide a potential taxpayer complete relief from tax, tax at a reduced rate, or tax on only a portion of the items subject to tax |
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Term
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Definition
| Income whose taxes can be postponed until a later date |
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Term
| Annual percentage Yield (APY) |
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Definition
| The effective annual rate of return taking into account the effect of compounding interest. |
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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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Term
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Definition
| A registered, non-callable, non-transferable bond issued by the U.S. Government, and backed by its full faith and credit. |
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