Ramsey Chapter 3

Front

a savings account set up specifically to be used to cover financial emergencies

Back

Emergency Fund

Front

the persistent rise in the cost of goods and services over time

Back

Inflation

Front

a purchase that requires a significant amount of money

Back

Large Purchase

Front

the amount of interest charged on a debt but not yet collected; interest accumulates from the date a loan is issued

Back

Accrued Interest

Front

the measure of an investment’s profit or loss, usually expressed as a percentage of the initial investment

Back

Rate of Return

Front

interest paid on interest previously earned

Back

Compound Interest

Front

the percentage of principal charged by the lender for the use of its money

Back

Interest Rate

Front

the initial amount of money invested or borrowed

Back

Principal

Front

concept that an amount of money is worth more today than in the future due to earning potential

Back

Time Value of Money

Front

the average rate of growth for an investment over time; often expressed as an annual figure

Back

Compound Growth