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10 Cards in this Set
- Front
- Back
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income remaining after deduction of taxes, other mandatory charges, and expenditure on necessary items.
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Discretionary income
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is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.
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Compound interest |
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the loss of potential gain from other alternatives when one alternative is chosen.
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Opportunity costs
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automatically routing your specified savings contribution from each paycheck at the time it is received. |
Pay yourself first |
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income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes.
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Disposable income
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Rule of 72 |
a shortcut to estimate the number of years required to double your money at a given annual rate of return
72 / annual interest rate |
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FDIC |
the U.S. corporation insuring deposits in the United States against bank failure
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Collateralized loan |
are a form of securitization where payments from multiple middle sized and large business loans are pooled together and passed on to different classes of owners in various tranches.
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Certificate of Deposit |
a certificate issued by a bank to a person depositing money for a specified length of time.
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is the idea thatmoney available at the present time is worth more than the same amount in the future due to its potential earning capacity.
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Time Value of money |
