Personal Finance

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

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

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

Back

Principal

Front

This is just a savings account with a slightly higher interest rate because the saver commits to a longer saving period for a set amount deposited.

Back

C.D.

Front

This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.

Back

debt

Front

The availability of money; how quickly you can convert it into cash in your hand is its _______.

Back

liquidity

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.