| A | B |
|---|
| Compound Interest | H. Interest computed on the original principal plus interest already earned. |
| Annual Percentage Yield | F. The actual interest rate an account pays per year, with compounding calculated. |
| Liquidity | A. How quickly you can turn investments into cash when you want it |
| Maturity Date | E. The date on which an investment becomes due for payment. |
| Principal | C. The amount of money deposited by a saver. |
| Risk | D. The chance that an investment’s return will be different than expected. |
| You will receive the greatest gain on your principal if interest is compounded | Daily |
| Rule of 72 | technique for estimating the number of years required to double your money at a given rate of return |
| Simple interest | interest earned on the original principal. |
| Financial security | confident and prepared for future household needs and wants |
| Discretionary income | amount of money left after bills have been paid |
| Certificate of Deposit | A deposit earns a fixed interest rate for a specified length of time |
| Money Market Account | a combination savings-investment plan in which money deposited is used to purchase safe, liquid securities |
