Chapter 4 - 7 principal is the amount of money earning interest 8 annual interest rate is the percent of the principal that you earn as interest

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Chapter 4: Savings Accounts 1. savings account : funds deposited in a bank for which you earn interest. 2. deposit : a certain amount of money needed to open a savings account. 3. withdrawal : is a sum of money that you take out of your savings account. 4. passbook : when you make a deposit or withdrawal, a bank teller records in your passbook the transaction, any interest earned, and the new balance. 5. statement : it shows all deposits, withdrawals, and interest credited to your account. 6. interest : the amount you earn for permitting the bank to use your money.
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Unformatted text preview: 7. principal : is the amount of money earning interest. 8. annual interest rate : is the percent of the principal that you earn as interest based on one year. 9. simple interest : interest paid on the original principal. 10. compound interest : interest earned not only on the original principal but also on the interest earned during previous interest periods. 11. amount : is the balance in your account at the end of an interest period....
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This note was uploaded on 01/24/2012 for the course HUM 9999 taught by Professor Variousprofessorslisted during the Summer '06 term at Abilene Christian University.

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