Chapter 3 Flashcards
(8 cards)
1
Q
The percentage of principle charged by the lender for the use of its money
A
Interest Rate
2
Q
The amount of interest charged on a debt but not yet collected; interest accumulations from the date a loan is issued
A
Accrued Interest
3
Q
the average rate of growth for an investment over time; often expressed as an annual figure
A
Compound Growth
4
Q
Interest paid on interest previously earned
A
Compound Interest
5
Q
the initial amount of money invested or borrowed
A
Principle
6
Q
The measure of an investments profit or loss, usually expressed as a percentage of the initial investment
A
Rate of Return
7
Q
The persistant rise in the costs of services and goods over time
A
Inflation
8
Q
Concept that an amount of money is worth more today than in the future due to earning potential
A
Time Value of Money
