W5 Flashcards
1
Q
What happens to compound interest over time?
A
It increases.
1
Q
What’s compound interest?
A
Interest is added to the principal each time.
2
Q
How do you change compound interest when the period is of less than a year?
A
By changing the denominator for the rate.
3
Q
What’s inflation?
A
General increase in price and decrease in purchasing power.
4
Q
What’s the common measure of inflation?
A
Inflation rate.
