Chapter 6 Saving
Deposit Interest Retention Tax
What does DIRT stand for?
Annual Equivalent Rate
What does AER stand for?
What is Borrowing?
Annual Percentage Rate
What does APR stand for?
Original amount paid in X interest rate ÷ 100
What is the formula for Simple Interest?
Commercial Banks, Credit Unions and An Post
Which Financial Institutions offer Savings and Investment options?
To buy something that will take a long time to save for.
To pay college fees.
To pay for an unforeseen event.
To start a business.
What are the reasons for Borrowing?
A Long-term loan for a house or a property
What is a Mortgage?
A reward given by a financial institution for saving money with them.
What is Interest?
A long-term financial commitment. Saving money in a fixed-term high interest account.
What is Investing?
A sum of money that is borrowed from a Financial Institution and then paid back in instalments with Interest.
What is a Loan?
A person who has agreed to pay the loan if the applicant is unable to pay
What is a guarantor?
Compound Annual Return
What does CAR stand for?
A deposit account and a share account
What kind of savings accounts do Credit Unions offer?
Something of value that the borrower promises to give to the lender in the event of non-payment of the loan.
What is collateral security?
Amount Repaid - Amount Borrowed
What is the formula for calculating the cost of a loan?
Balance at the start of the year X Interest Rate ÷ 100
What is the formula for Compound Interest?
A share of the profits at the end of each year.
What is a dividend?
This loan is repaid over more than 5 years
What is a long-term loan?
Irish Credit Bureau
What does the ICB stand for?