Show:
FAB VOCAB
TYPES OF LOANS AND ACCOUNTS
TIPS AND TRICKS
SIMPLE INTEREST
COMPOUND INTEREST
100

This type of interest rate stays the same throughout the entire loan term

What is a fixed interest rate?

100

A type of loan that is NOT backed by collateral

What is an unsecured loan?

100

Taking on this type of loan is highly discouraged by financial advisors AND Ms. Bedenbaugh

What is a payday loan?

100

This is the formula for simple interest

What is I=PRT?

100

This is the formula for compound interest

What is A=P(1+r/n)nt ?

200

The number that represents your "creditworthiness" to creditors

What is your Credit Score?

200
Saving account designed specifically for retirement and offers tax advantages

What is an Individual Retirement Account (IRA)?

200

This is a rule that designates how much (%) of your income to spend in each category

What is the 50/30/20 Rule?

200

This is what EACH of the variables in the simple interest formula represent (you must put ALL OF THEM) (Hint: You should have 4)

What is I=Interest, P=Principle, R= Interest Rate as a decimal, T= Time in years?

200

This is what EACH of the variables in the compound interest formula represent (You must put ALL of them) (Hint: There are 5)

What is A=Amount (including interest and principle), P=Principle, R=Interest rate as a decimal, N= Number of times compounded per year, T= Time in years ?
300

The yearly cost of borrowing, including interest and fees.

What is Annual Percentage Rate (APR)?

300

This type of account is designed for saving money, and generally offers interest on the balance

What is a savings account?
300

This is how much of a balance you should carry month to month on a credit card

What is ZERO DOLLARS?

300

Jeremy earns 5% interest on his savings account. If he starts with $5000, this is how much he will have TOTAL after 4 years

What is $6,000?

300

Bristol has an account where she makes 5% interest compounded quarterly. If she starts her account with $2,000, this is how much she will have in the account after 5 years.

What is $2,564.07?

400

A short-term, high interest loan that often creates cycles of debt?

What is a payday loan?

400

These are typically used to pay for educational expenses

What are student loans?

400

This is what you should do if you have MULTIPLE loans with high interest rates

What is debt consolidation?

400

Cam has a savings account but can't remember how much interest he makes on the account. He started with $300, and after 1 year he has $320. This is his interest rate.

What is 6.6%?

400

Kennedy has an account where she earns 3.5% interest compounded monthly. If she starts with $17,000, this is how much will she have after 10 years.

What is $24,111.86?

500
A fee sometimes charged for paying a loan off BEFORE the end of its term

What is a prepayment penalty?

500
A fixed-term deposit account that has the highest interest rate

What is a Certificate of Deposit (CD)?

500

This is how you get a lower interest rate if you are taking on a loan, such as a car payment

What is a shorter loan term?

500
Durell wants to pick a savings account that will allow his money to grow from $200 to $800. If he finds an account that offers 8% interest, this is how long he will have to wait.

What is 37.5 years?

500

Amari is deciding if he will have enough money ($10,000) to open his own business. His account has $9,000 at the start, and the account terms are 2.5% compounded semiannually. If he waits 5 years, this is how much he will have in the account and he (CAN OR CANNOT?) start his business.

What is yes he can, he will have $10,190.43?