Interest / Cost of Money

4. Charging excessive interest rates on loans is know as ______.
7. Enables the saver to earn interest on the interest that was earned earlier.
10. To know the Time Value of Money, you must know . . .
15. If interest rates are expected to decrease in the future, a ____-_____ ______ instrument might be a good investment.
16. Usually pay the highest rates of interest because they have lower risks and costs of operation.

1. Paid annually on the principal.
2. If interest rates are expected to decrease in the future, a ____-____ ____ _____ certificate of deposit might be a good investment.
3. Is the true cost of credit because it takes into account all the costs of borrowing.
5. Concept that money received today is worth more than the same amount of money received in the future.
6. Requires that the finance charge and annual percentage rate be disclosed to the consumer in advance and specifies how the annual percentage rate must be calculated.
8. Long-term fixed rate borrowers benefit from ________.
9. A formula to approximate the time it will take for a given amount of money to double at a given compound interest rate.
11. Equals the principal x stated interest rate x time (in years).
12. The amount earned on the principal over time.
13. The cost to buy the right to use someone else's money for a period of time is called
14. The original capital deposited or invested.