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