Financial Math: Math In Personal Finance

List the steps of the financial planning process?

- determining the current financial situation -developing financial goals - identifying alternative courses of action - evaluating alternatives -creating and implementing an action plan - re-evaluating and revising the plan

Reviewing and revising the financial plan involves:

-regularly assessing the financial decisions -taking a complete review of finances @ least once a year - making priority adjustments which will bring financial goals in line with current life situation.

What factors determine the time value of money?

-the amount of saving- commonly called principle -the rate of interest -the amount of time

Describes interest generated on previously earned interest.

Compound interest

The time value of money is also referred to as?

Interest

Consider the consequences of choice is part of which of the following steps of the financial planning process?

evaluating the alternatives

Describes interest computed on the principle, excluding previously earned interest.

simple interest