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Personal Finance Ins

UCA Personal Finance Institute-Chapter 3 Vocabulary

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
Created by: smills01