# Glossary Terms:

### Calculating Simple Interest

Glossary terms from:
http://www.econedlink.org/e1008

### Bank

A financial institution that provides various products and services to its customers, including checking and savings accounts, loans and currency exchange.

### Borrow

To receive and use something belonging to somebody else, with the intention of returning or repaying it--often with interest in the case of borrowed money.

### Check

A written order to a financial institution directing the financial institution to pay a stated amount of money, as instructed, from the customer's account.

### Credit

The opportunity to borrow money or to receive goods or services in return for a promise to pay later.

### Interest

Money paid regularly, at a particular rate, for the use of borrowed money.

### Interest Rate

The price paid for using someone else's money, expressed as a percentage of the amount borrowed.

### Money

Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

### Mortgage

A special type of loan for the purchase of a house or other real estate.

### Principal

An original amount of money invested or lent.

### Resources

The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.

### Simple Interest

Interest paid on the initial investment (the principal) only. Calculated by multiplying the investment principal times the annual rate of return times the number of years involved.