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After graduating from college,Rob Johnson experienced some difficulty in finding full-time employment.He free-lanced during the summer as a writer and then started a blog in the fall.Shortly thereafter he was contacted by SitePromoter Incorporated,who offered to pay him to promote their clients in his blog.He set up several more blogs for this purpose and is now generating a reasonable level of income.He is engaged in
Discounting
The process of determining the present value of a payment or a stream of payments that is to be received in the future.
Compounding
The process whereby interest is added to the principal sum, so that from that moment on, the interest that has been added also earns interest.
Demand Curve
A graph representing the relationship between the price of a good and the quantity demanded, with price on the vertical axis and quantity on the horizontal axis.
Loanable Funds
The money available for borrowing in the financial markets, determined by savings and investments.
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