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13 terms

Amen Business Math - Chapter 5

STUDY
PLAY
account statement
shows all deposits, withdrawals, and interest credited to your account
annual interest rate
the percent of the principal that you earn as interest based on one year
annuity
equal amount of money are deposited at equal periods of time
annuity due
regular deposits at the beginning of the period which immediatley start earning interest
compound interest
interest earned not only on the original principal, but also on the interest earned during previous interest periods
daily compounding
interest computed each day and added to the account balance
deposit
money you give to the bank to hold in your savings account
interest
rental fee paid by a bank for the use of your money
ordinary annuity
occurs when equal deposits are made at the end of each interest period
principal
amount of money earning interest
savings account
special bank account that earns interest
simple interest
interest based on the principal, the interest rate, and the amount of time for which the principal is borrowed
withdrawal
money you take out of your bank account