1.Match each phrase with the correct term.

1 Based on initial investment only.

2 Fixed obligation to pay an amount in cash.

3 Rent paid or received for the use of money.

4 The rate at which money will actually grow.

5 Interest accumulates on interest.

a.

Simple interest.

b.

Monetary liability.

c.

Interest.

d.

Effective yield.

e.

Compound interest.