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300 Vocabulary

PF

TermDefinition
emergency fund a savings account set up specifically to be used to cover financial emergencies
large purchase a purchase that requires a significant amount of money
interest rate the percentage of principal charged by the lender for the use of its money
accrued interest the amount of interest charged on a debt but not yet collected; interest accumulates from the date a loan is issued
compound growth the average rate of growth for an investment over time; often expressed as an annual figure
compound interest interest paid on interest previously earned
principal the initial amount of money invested or borrowed
rate of return the measure of an investment’s profit or loss, usually expressed as a percentage of the initial investment
inflation the persistent rise in the cost of goods and services over time
time value of money concept that an amount of money is worth more today than in the future due to earning potential
Created by: dupreejp
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