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UCA Personal Finance Institute-Chapter 3 Vocabulary

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Question
Answer
Future value interest factor   a factor multiplied by today’s savings to determine how the savings will accumulate over time  
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Annuity   a series of equal cash flow payments that are received or paid at equal intervals in time  
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Compounding   the process of earning interest on interest  
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Present value interest Factor   a factor multiplied by a future value to determine the present value of that amount  
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Discounting   the process of obtaining present values  
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Timelines   diagrams that show payments received or paid over time  
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Annuity due   a series of equal cash flow payments that occur at the beginning of each period  
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