loans
money given to you from a bank
what is a loan
intrest paid on interest perviously earned
what is compound interest
a loan made by investor to borrow, such as a company or government
what is a bond
this term describes the process of earning interest on both the principal and the interest already earned
what is compounding
a bank account used for daily transactions
what is a checking account
A loan payment to help parents pay for students education.
what is student loans
First thing you need to do in financial plan, for unexpected expenses.
What is emergency fund
The best bond rating assigned by rating agencies
what is AAA
compound interest usually results in a higher return than simple interest because of this effect
what is growth
A institution that provides the same services as a bank.
what is a credit union
The fee the lender charges the borrower
what is intrest
goal for something you want in 3-6 months
what is short-term goal
type of bond issued with the owners name
what is a registered bond
to make money on a savings account, you want this rate to be high, but when borrowing, you want it low
what is APY
a secure place to store valuables inside a bank's vault
What is a safe deposit box
anything value belonging to the borrower which is plegged to lender to guarantee that a loan will be repaired.
what is collateral
savings for something you want in 2-3 years
what is long-term goal.
annual interest payment divided by the bonds current market value, as a percentage
what is current yeild
the formula to find this rate is: Nominal Interest Rate minus Inflation Rate
what is real interest rate
a check that cannot be processed due to insufficient funds
what is a bounced check
abbrevation stands for the yearly interest rate charged to use of credit card
what is APR
government insitition that insures bank savings account up to 250,000
what is FDIC
a bond where every bond has the same issue date, interest rate, and maturity
what is a term bond
Rule of 72, this is approximately how many years it takes to double your money if you earn 8% interest
what is 9 years
a document every month to look for mistakes
what is bank statement