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PCS Personal Fin
Personal Finance Key Terms Ch. 2
| Term | Definition |
|---|---|
| Compound Interest | Interest paid on interest previously earned; credited daily, monthly, quarterly or semiannually |
| Emergency fund | Five hundred dollars in readily available cash to be sued only in the event of an emergency; the goal of the First Foundation |
| Interest rate | Percentage paid to a lender for the use of borrowed money (in debt); percentage earned on invested principal (in investing) |
| Five Foundations | the five steps to financial success |
| Sinking fund | saving money over time for a large purchase |