Management and Organizational Studies 2277A/B Lecture Notes - Lecture 1: Mortgage Loan, Adjustable-Rate Mortgage, Vehicle Insurance

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2277A/B
• Professor: Dontremember

Document Summary

Chapter 1 personal financial planning: an introduction. Adult life cycle the stages in the family situation and financial needs of an adult. Annuity a series of equal amounts (withdrawals or deposits) made at regular time intervals. Bankruptcy a set of federal law that allow you to either restructure your debts or remove certain debts. Compounding a process that calculates interest based on previously earned interest. Economics the study of how wealth is created and distributed. Financial plan a formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends future financial activities. Future value the amount to which current savings will increase based on a certain interest rate and a certain time period, typically involves compounding. Inflation a rise in the general level of prices. Life cycle approach the idea that the average person goes through 4 basic stages in in personal financial management.