Basic Long-term Financial Concepts Flashcards
1
Q
“People are constantly making choices among various financial decisions. In making those choices, people must give up something in order to gain something else.
A
Opportunity Cost
2
Q
Interest
A
Simple interest
Compound interest
3
Q
is an interest paid or computed on the original principal only of a loan, investment, or deposit for a specific period.
A
Simple interest
4
Q
is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on principal plus interest.
A
Compound interest
5
Q
is the value of a current asset at a future date based on an assumed rate of growth.
A
Future Value
6
Q
Mortgages
A
Amortization
Amortization Schedule
