Financial Concepts: Interest Types and Formulas

Interest that is computed each day and added to the account balance.

<p>The process of determining any differences between the balance shown on the bank statement and the checkbook balance.</p> Signup and view all the answers

<p>Interest paid on interest previously earned; credited daily, monthly, quarterly, or semiannually.</p> Signup and view all the answers

<p>Interest earned only on the original principal amount invested.</p> Signup and view all the answers

<p>A = P(1 + r/n)^(n x t), where r is the rate, n is the number of times compounded, t is time.</p> Signup and view all the answers

<p>I = Prt.</p> Signup and view all the answers

<p>The interest rate paid per year or charged per year.</p> Signup and view all the answers

<p>The simple interest rate required to give the same amount of interest as calculated by the compound interest formula for a year.</p> Signup and view all the answers

<p>The book in which you keep records of checks, deposits, debit card transactions, and ATM withdrawals.</p> Signup and view all the answers

<p>A savings account that requires a minimum balance and earns interest that varies from month to month.</p> Signup and view all the answers

<p>A bank account against which the depositor can draw checks payable on demand.</p> Signup and view all the answers

<p>A savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.</p> Signup and view all the answers

<p>An account at a depository institution that is designed to hold money not spent on current consumption.</p> Signup and view all the answers

<p>Deposits that have been made and recorded in the checkbook but do not appear on the bank statement.</p> Signup and view all the answers

<p>Money that has been taken out of an account but has not been recorded on a bank statement.</p> Signup and view all the answers