simple interest
You invest $500 at a simple interest rate of \(8\%\) per year for \(3\) years. How much interest do you earn?
$120
This type of plastic card is linked directly to your checking account and deducts money immediately when you make a purchase.
debit card
The specific nine-digit number located at the bottom of a check that identifies your specific bank.
routing number
Unlike scholarships or grants, these are financial awards for school or other needs that must absolutely be paid back.
loans
The regular, ongoing payment you make (monthly or yearly) to keep your insurance policy active.
premium
$1,200
This 4-digit code is required to use your debit card at an ATM or to make certain point-of-sale transactions.
PIN number
A type of bank account designed for long-term storage of money that typically pays you interest.
savings account
The government form a student must complete to be eligible for federal grants, work-study, and student loans.
FAFSA
The specific out-of-pocket dollar amount you must pay for covered services before your insurance company starts paying.
deductible
A principal amount of $2,000 earns $300 in simple interest over 3 years. What is the annual interest rate?
5%
This is the minimum amount of money you are required to keep in your checking account to avoid getting charged a monthly fee.
minimum balance
This three-digit number predicts how likely you are to pay back borrowed money.
credit score
what is A loan that is paid back in equal, fixed monthly installments over a set period of time
Installment loan
A set flat fee you pay out-of-pocket for a specific medical service, such as a $20 charge for a doctor's visit.
copay
Calculate the simple interest on a \(\$600\) loan for 6 months at an annual interest rate of 10%
$30
This government agency ensures all bank and credit union deposits up to $250,000 per person.
FDIC (Federal Deposit Insurance Corporation)
The fee or "rent" a financial institution charges you for borrowing their money.
interest
A type of loan often used for higher education where the federal government pays the interest while you are still in school.
student loan
This is required by most mortgage lenders and protects a home’s structure against risks like fire and windstorms.
homeowners policy
You have $400in a savings account that earns 10%simple interest annually. How long will it take to earn $80 in interest?
2 years.
You will be charged this type of fee if you try to write a check, but your account doesn't have enough money to cover it.
overdraft fee
A mutually-owned, non-profit financial institution that provides the same services as a regular bank.
credit union
A short-term, high-interest loan secured by your next paycheck, often considered predatory.
payday loan
This type of life insurance policy provides coverage for a set number of years (e.g., 10, 20, or 30 years) and does not build cash value.
life insurance