When Applying for a Credit Card, the Amount of Savings

question 113

True/False

When applying for a credit card, the amount of savings that you have will not be a factor in the credit card company's decision.

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Definitions:

Compounded Annually

The process of adding the accumulated interest back to the principal sum at the end of each year, so that interest is earned on interest from that point forward.

Accountant

An accountant is a professional who performs accounting functions such as audits or financial statement analysis according to prescribed methods.

Retire

To retire means to withdraw from active working life, often due to reaching a certain age or completing enough years of service to qualify for pension benefits.

Compounded Annually

The process of earning interest on both the initial principal and the accumulated interest from previous periods on a yearly basis.