Here are the descriptions and corresponding financial situations:

1. Only earns interest on the initial deposit
   Answer: Simple Interest

   • Simple interest is calculated only on the initial principal, not on accumulated interest.

2. Single initial deposit, but earns interest on principal and interest
   Answer: Compound Interest

   • Compound interest includes interest on the initial principal and on the interest already earned.

3. Interest on principal and interest, but with regular deposits
   Answer: Annuity

   • An annuity involves regular deposits and earns interest on both the principal and any accumulated interest.

4. Interest on principal and interest, but with regular withdrawals
   Answer: Payout Annuity

   • A payout annuity allows for regular withdrawals while continuing to earn interest on the remaining principal.

5. Buying a home
   Answer: Amortized Loan

   • An amortized loan is typically used for large purchases like homes, where the loan is paid off over time with regular payments that include both interest and principal.

Would you like more details or have any further questions?

Here are 5 related questions:

1. What is the formula for calculating simple interest?
2. How does compound interest differ when compounded annually versus monthly?
3. What are the advantages of an annuity compared to a lump-sum investment?
4. How does a payout annuity help in retirement planning?
5. How is the monthly payment for an amortized loan calculated?

Tip: Compound interest grows faster than simple interest because it earns interest on interest!