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17 Cards in this Set
- Front
- Back
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Adult life cycle |
Stages in the family and financial needs of an adult |
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Bank Ruptcy |
Is a set of federal laws that allow you to either restructure you debt or remove certain debts. |
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Economics |
Is the study of how wealth is created of distributed |
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Financial plan |
Is a formalized report that summarizes your current financial analysis your financial needs and recommended future activities. |
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Rule of 72 |
To find out how fast prices will double. |
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Future value |
The amount to which current savings will increase based on a certain interest rate and a certain time period also know as compounding |
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Inflation |
A rise in the general level of prices |
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Liquidity |
Refers to the ability to readily convert financial resources into cash without a loss in value. |
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Opportunity cost |
What you are giving up by making a choice. |
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Interest calculations |
Three amounts are required to calculate the time value of money for savings in the form of interest earned Amount in savings × annual interest rate × time period = interest |
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Personal financial planning |
Is the process of managing your money to achieve personal economic satisfaction |
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Present value |
Is the current value for a future amount based on a certain interest rate and a certain time period Also know as discounting |
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Time value of money |
The increase in an amount of money as a result of interest earned |
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Value |
The ideas and principles that are considered current, desirable and important |
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Future value of a series of deposited |
An annuity is a series of equal deposits or payments |
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Present value of single amount |
If you want to know how much you need to deposit now to receive certain amount in the future |
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Present value of a series of deposit |
Final time value of money situation allows you to receive an amount at the end of each time period for a certain number of periods. |
