interest
money paid for the privilege of using someone else’s money.
interest rate
the percent used to determine the amount of interest.
maturity value of a loan
the principal of a loan plus the interest owed on it.
principal
the amount of money originally deposited or borrowed.
simple interest
interest computed on the original principal.
finance charges
interest charges on purchases made with a credit card.
compound interest
interest computed not only on the original principal but also on interest already earned.
loan origination fee
the fee a bank charges for processing mortgage papers.
mortgage
the amount borrowed to buy real estate.
fixed-rate mortgage
a mortgage in which the monthly payment remains the same for the life of the loan.
property tax
a tax based on the value of real estate.
license fees
fees charged for authorization to operate a vehicle.
sales tax
a tax levied by a state or municipality on purchases.
commissions
that part of the pay earned by a salesperson that is calculated as a percent of the salesperson’s sales.
hourly wage
pay calculated on the basis of a certain amount for each hour worked.
salary
pay based on a weekly, biweekly, monthly, or annual time schedule.
check
a printed form that, when filled out and signed, instructs a bank to pay a specified sum of money to the person named on it.
checking account
a bank account that enables you to withdraw money or make payments to other people, using checks.
deposit slip
a form for depositing money in a checking account.
balancing a checkbook
determining whether the checking account balance is accurate.
bank statement
a document showing all the transactions in a bank account during the month.
service charge
an amount of money charged by a bank for handling a transaction.
