ACT 2300- Final Exam Guide - Comprehensive Notes for the exam ( 76 pages long!)
Document Summary
An account that generates interest income on the available balance in the account is an. The five foundations are the five steps to. A savings account that is set aside to be used only for emergency expenses is an. Compound interest is interest paid on previously earned interest. A sinking fund is saving money over time for a large purchase. A rate which is either charged (on debt) or paid (on investment accounts) for the use of money is the. Inflation is the persistent increase of the cost of goods and services or the persistent decline in the purchasing power of money. You income level has nothing to do with your spending habits. At your age a fully funded emergency fund should be. You should save money for: emergency fund; 2) purchases; 3) wealth building. Instead of borrowing money for large purchases, you should set money aside in a sinking fund over time and pay cash.
