Financial Literacy · Reference

Financial Glossary

50 key investing terms, definitions, and formulas. Search by name, filter by category, or browse alphabetically.

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📐 Key Formulas

Compound Interest

A = P × (1 + r/n)nt
AAmount after time t (what you end up with)
PPrincipal — the starting amount invested
rAnnual interest rate as a decimal (e.g., 7% = 0.07)
nNumber of times interest compounds per year (12 = monthly, 1 = annually)
tNumber of years invested

Rule of 72

72 ÷ interest rate = years to double
→Quick estimate of how long it takes to double money at a fixed annual return rate
→Example: at 7% annual return → 72 ÷ 7 = ~10.3 years to double
→Works in reverse too: money losing 6%/yr halves in 72 ÷ 6 = 12 years