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Chapter 12

Cons Ed Chapter 12

AB
savingsetting aside money for future use
investingcommitting money for the purpose of making a profit over time
savings plana step-by-step approach for putting money aside in savings
discretionary incomethe amount of available income after taxes and necessary spending for food, clothing, and shelter
simple interestinterest calculated only on the money you've deposited, not on prior interest earned
compound interestinterest calculated on both deposits made and prior interest earned



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