Ramsey Chapter 3

a savings account set up specifically to be used to cover financial emergencies

• Emergency Fund

• Time Value of Money

• Large Purchase

• Compound Growth

the persistent rise in the cost of goods and services over time

• Inflation

• Compound Growth

• Emergency Fund

• Large Purchase

a purchase that requires a significant amount of money

• Large Purchase

• Rate of Return

• Principal

• Inflation

the amount of interest charged on a debt but not yet collected; interest accumulates from the date a loan is issued

• Accrued Interest

• Compound Growth

• Compound Interest

• Rate of Return

the measure of an investment’s profit or loss, usually expressed as a percentage of the initial investment

• Rate of Return

• Accrued Interest

• Compound Growth

• Interest Rate

interest paid on interest previously earned

• Compound Interest

• Accrued Interest

• Compound Growth

• Interest Rate

the percentage of principal charged by the lender for the use of its money

• Interest Rate

• Accrued Interest

• Compound Interest

• Compound Growth

the initial amount of money invested or borrowed

• Principal

• Inflation

• Rate of Return

• Time Value of Money

concept that an amount of money is worth more today than in the future due to earning potential

• Time Value of Money

• Inflation

• Rate of Return

• Compound Growth

the average rate of growth for an investment over time; often expressed as an annual figure

• Compound Growth

• Principal

• Rate of Return

• Compound Interest