Interest and Income Flashcards
(8 cards)
1
Q
Discretionary Income
A
what we have left over to spend
2
Q
earned income
A
wages, commissions, and tips
3
Q
investment income
A
earnings from dividends, interest, and rent
4
Q
net income
A
the difference between total revenue and total expenses when total revenue is greater
5
Q
discretionary income
A
disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter
6
Q
interest rates
A
the cost of money; credit when you borrow; return on your money when you save or invest
7
Q
simple interest
A
amount times the annual interstate times time
8
Q
compound interest
A
interest earning interest
