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POB 8.02 Flashcards

AB
Rate of returnThe amount of money, or yield,an investment earns; it is expressed as a percentage (%) of the original investment.
YieldActual return on a security.
Fixed RateA type of investment that yields an unchanging return.
Variable RateA type of investment whose rate of return changes depending on the average yield of the investment.
InflationA prolonged rise in level of prices for goods and services.
LiquidityThe measure of how quickly an investment can be turned into cash.
PrincipalThe amount of money owed as a debt upon which interest is calculated.
Simple interestThe interest caculated on a principal sum, not compounded on earned interest.
DD/DW (date of deposit to date of withdrawal)Money earns interest every day it is in the bank.
Compound InterestIs a multi-step process for computing interest.


Teacher
Garinger HS New Technology Academy
Charlotte, NC

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