Chapter 2, Lesson 3 Flashcards
1
Q
Compound Interest
A
Interest paid on interest previously earned; credited daily, monthly, quarterly, or semiannually
2
Q
Emergency Fund
A
Five hundred dollars in readily available cash to be used only int he event of an emergency; the goal of the First Foundation
3
Q
Interest Rate
A
Percentage paid to a lender for the use of borrowed money (in debt); percentage earned on invested principal (in investing)
4
Q
Five Foundations
A
The five steps to financial success
5
Q
Sinking Fund
A
Saving money overtime for large purchases
6
Q
Inflation
A
A persistent rise in the price of goods or services over a period of time.
6
Q
Time Value of Money
A
The principle suggests that a certain amount of money today has different buying power than the same amount of money in the future.
