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18 Cards in this Set
 Front
 Back
Amortized Loans 2 
A loan paid off in equal installments 

Annuity 
A series of equal dollar payments at the end of each period for "x" number of time periods 

Power of Compound Interest 
Allowing the interest that you earn on an investment to stay in the investment and to earn interest on the interest you have already earned 

Perpetuity 
An annuity where the payments never stop 

Rule of 72 Math 
By dividing interest rate into 72, you see how many years it takes to double your money 

Rule of 72 Math 3 
By dividing years into 72, you see what interest rate it takes to double your money 

Amortized Loans 
Car loans and mortgage loans are typical annuities in the form of these 

Power of Compounding 
Helps you attain financial goals, gives you more money for retirement and provides money for excess of social security and private pensions 

Discount Rate 
Interest rate used to bring future dollars back to present dollars 

Amortized Loans 3 
Later loan payments involve larger amounts of principal payment 

Time Value of Money 
Method by which one can compare cash flows across time either as what a future cash flow is worth today (present value) or what an investment today will be worth in the future (future value) 

Compounding Periods 
Money will grow faster as the number of these periods per year becomes larger 

Inflation Period 
The "enemy" of compound interest and makes it very difficult to reach your financial goals 

Present Value 
The current value in today's dollars of a future sum of money 

Future Value 
The dollar value of an investment at some future point in time 

Time Value of Money 
This principal states that a dollar today is worth more than a dollar in the future 

Compound Annuity 
Uses the principles of reinvesting and compound interest 

Rule of 72 4 
Using rule of 72 divide years into 72 to see interest rate 