| Term | Definition |
| time value of money | the increase of an amount of money as a result of interest or dividends earned |
| principal | is the amount of money you deposit and on which interset is paid |
| future value | is the amount your original deposit will be worth in the future based on earning a specfic interest rate over a specfic period of time |
| annuity | a series of equal regular deposits is called |
| present value | is the amount of money you would need to deposit now in order to attain a desired amount in the future |