FM Chp. 3 Vocab

Front

Initial amount invested or borrowed.

Back

Principal

Front

Savings account for financial emergencies.

Back

Emergency Fund

Front

Money's value today vs. future.

Back

Time Value of Money

Front

Average growth rate of an investment over time.

Back

Compound growth

Front

Persistent rise in the cost of goods and services.

Back

Inflation

Front

Interest charged on a debt but not yet collected.

Back

Accrued Interest

Front

Percentage of principal charged by lender for money use.

Back

Interest Rate

Front

Measure of an investment's profit or loss.

Back

Rate of Return

Front

A purchase that requires a lot of money.

Back

Large Purchase

Front

Interest on previously earned interest.

Back

Compound Interest