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Personal Finance Ins
UCA Personal Finance Institute-Chapter 3 Vocabulary
Question | Answer |
---|---|
Future value interest factor | a factor multiplied by today’s savings to determine how the savings will accumulate over time |
Annuity | a series of equal cash flow payments that are received or paid at equal intervals in time |
Compounding | the process of earning interest on interest |
Present value interest Factor | a factor multiplied by a future value to determine the present value of that amount |
Discounting | the process of obtaining present values |
Timelines | diagrams that show payments received or paid over time |
Annuity due | a series of equal cash flow payments that occur at the beginning of each period |