| A | B |
|---|
| Personal Financial Planning | process of managing personal assets to achieve economic satisfaction |
| Interest | cost of money which is borrowed or rent |
| Simple Interest | interest computed on the principle, excluding previously earned interest |
| Compounding | interest which is generated on previously earned interest |
| Future Value | amount to which a current saving will increase based on a certain interest rate and a certain time period |
| Intraperiod Compounding | compounding more than once within a calendar year |
| Present Value | current value for a future amount based on a certain interest rate and a certain time period |
| Present Value of a Series of Deposits | amount of money a person needs to deposit so he can take a certain amount out of the account for a desired number of years |
