| A | B |
|---|
| Simple Interest | Principal x Rate x Term |
| Rule of 72 | Years to Double your investment = 72 / Rate |
| Net Worth | Assets - Liabilities |
| Assets | What you own |
| Liabilities | What you owe |
| Debt Equity Ratio | A percentage of your assets not yet paid for |
| Liquid Assets | Things you own that can be turned into cash. (Bank account Balances, Savings bonds) |
| Semi-Liquid Assets | Longer Term investments were it may take a week to see the money if needed. Examples RSPs, Real Estate, stocks. |
| Non-Liquid Assets | Items you must sell on the open market. Examples, House, vehicles, boats, antiques |
| Short Term Debts | Liabilities that must be paid off in the next 12 months. Example Loans, credit cards. |
| Long Term Debts | Most commonly, mortgages, Car loans |
| Principle | The staring amount of a loan, or investment |
| Appreciation | The rate at which an investment or good grows in value |
| Bonds, GICs, RSPs | Safe and secure investment options |
| Stocks | Purchasing part of a company, often risky |
| Portfolio | Collection of investments, assets, debts, and liabilities |
| Rate of Return | Total Interest Earned / Total Amount invested |
| Mortgage | The amount of money still owing on a house or real estate |
| Mutual Fund | Funds made up of a group of Stocks and bonds |
| Gross Debt Service Ratio | Cost of owning a house(Mortgage, taxes, utlities) / income. Should not exceed 32% |
