PFET Unit 2 Review

Front

This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.

Back

compound

Front

Cost of credit expressed as a yearly percentage: Mortgage, Principal, APR, Finance company

Back

APR

Front

The cost of borrowed money, usually expressed as a percentage.

Back

interest

Front

401(k), IRA, and Roth IRA are all examples of a __________ account.

Back

Retirement

Front

What does CD stand for when talking about investments?

Back

Certificate of Deposit

Front

A mutual fund allows investments to be ___________.

Back

Diversified

Front

This type of retirement account offered by employers to their employees allows them to set aside tax-deferred income.  Sometimes employers will even match the employee contribution up to a certain amount.

Back

401(k)

Front

This term refers to the original amount of a loan OR the original amount of money invested.

Back

Principal

Front

Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or the addition of interest).

Back

Credit

Front

What is a credit score?

Back

A three-digit numerical rating that reflects how likely you are to repay your debt.