Chapter 3 (Return on Investment)

interest rate

money paid for the use of money, expressed as a percentage per unit of time

return on investment (ROI)

profit on an investment, expressed as a percentage

goal

something an individual wishes to accomplish in the future

investment

something into which one puts money, time, energy with the hope of gaining profit or satisfaction, in spite of risk

risk

the chance of loss

rate of return

the return on an investment, expressed as a percentage of the amount invested

sweat equity

the time and effort for little or no pay an entrepreneur puts into a venture in the hope of future return

percentage

"a given part of a hundred"; a number expressed as part of a whole, with the whole represented as 100 percent

Rule of 72

a formula for finding out how long it will take an investment to double in value