| A | B |
|---|
| principal | The balance upon which interest is paid. |
| simple interest | Interest paid only on the original principal, and not on any interest added at later dates. |
| compound interest | Interest paid on both the original principal and on all interest that has been earned and added to the originl principal. |
| annual percentage rate (APR) | The percentage of the principal paid in one year. |
| annual percentage yeild (APY) | The acctual percentage by which a ballance changes in one year. It is equal to the APR if the interest is compounded annually. It is greater than the APR if the interest is compounded more than once a year. |
