Interest
This is the amount of money you earn on your principal expressed as a percentage.
What is interest?
This investment represents ownership in a company, and the value can rise or fall based on the company's performance.
What is a stock?
This is the term for the original loan that is gaining or costing you interest.
What is a principal?
$1000 loan from the bank at a 3% simple interest rate every year for 3 years.
What is $1090
You have $1,000. You could either put your money in a savings account with 3% annual compounded interest or a 3% fixed interest rate.
This is the one that will give you more money.
What is compound interest?
This type of interest is calculated on the principal amount, not on any interest that has been added.
What is simple interest?
This type of investment represents a loan made to a company, and it pays you a fixed interest rate over a set period.
What is a bond?
This economic principle explains how the price of a good or service is affected by the amount of it available and how much consumers want it. For example, it explains why the price of cell phones are so high today.
What is supply and demand?
This is the total amount owed at the end of this term:
$4000 loan given by the bank at a compound interest rate of 4% for 6 years.
What is $5061.28
This is the type of interest bonds use.
What is simple interest?
If you invest $1000 at a simple interest rate of 5% per year, how much interest will you earn after 3 years?
What is $150?
A savings account is a type of investment that offers low risk but usually has this type of return.
What is low interest/low return?
This is when you don't physically have to work for the money you earn.
What is passive income.
This is the total interest earned by the end of this term:
A $5,000 bond with an interest rate of 4% for 10 years.
What is $2000?
This is the phenomenon that explains why minimum wage today is $17 when it was $7 20 years ago.
This type of interest is calculated on both the principal amount and the interest that has accumulated on it.
What is compound interest?
This type of investment guarantees a fixed interest rate for a set period and is considered low-risk.
What is a GIC (Guaranteed Investment Certificate)?
This is the type of investments you'd make if you want secure interest rate payments for a fixed amount of time and it's short-term.
I bought three Apple Stocks in 2020 for $60 each. Today an Apple Stock is sold for $232. This is the amount I could make in profit if I sold all three.
What is $516?
This is the equation for compound interest.
What is Principal x (1 + Interest rate %)^Time
You deposit $1000 in an account with 4% annual compounded interest. After 5 years, you will have earned this much in interest.
What is $1216.65?
This type of account allows you to earn interest while still maintaining access to your money, but it usually offers lower returns than a fixed-term investment like a GIC.
What is a savings account?
This is the type of risk associated with a savings account.
What is low-risk
This is the principal at the third year:
$5000 loan from the bank at a compound interest rate of 4%.
What is $5408?
What is a share?