Personal Finance Ins
| Description: | UCA Personal Finance Institute-Chapter 3 Vocabulary |
| Category: | Finance |
| Created by: | smills01 on 2008-01-26 |
| 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 |
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