principal - original amount borrowed from a bank or deposited into a savings account, interest rate - the percent of money you pay for a loan or by which an account grows , time - how long the loan/account exists in years, interest - the amount you pay a bank for a loan or by which an account grows, simple interest - I = Prt ; when the interest rate is taken from the principal, compound interest - A = P(1+r)^t ; when the interest rate is taken from the principal AND any other gained interest, loan - money borrowed from a bank,

Financial Unit Vocabulary 1

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