Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
8 Cards in this Set
- Front
- Back
|
Compounding
|
process of accumulating interest on an investment over time to earn more interest
|
|
|
Interest on Interest
|
interest earned on the reinvestment of previous interest payments
|
|
|
Compound Interest
|
interest earned on both the initial principal and interest reinvested from prior periods
|
|
|
Simple Interest
|
interest earned only on original principal amount invested
|
|
|
Present Value (PV)
|
current value of future cash flow discounted at the appropriate discount rate
|
|
|
Discount
|
calculating present value of some future amount
|
|
|
Discount Rate
|
rate used to calculate present value of future cash flows
|
|
|
Discounted Cash Flow (DCF) Valuation
|
calculating present value of future cash flow to determine its value today
|
