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Rule of 72
a common formula used to determine the years needed for money to double at compound interest; divide 72 by the interest rate to get the number of years
EXAMPLE:
According to the rule of 72, $10,000 invested at 6 per cent interest doubles to $20,000 in twelve years.
Rate of return
the yield, or amount of profit, produced from an investment
EXAMPLE:
The risk involved with investing in certain new technology companies was high, but they consistently produced a strong, 30 per cent rate of return
Seasonal variation
predictable changes in sales volume, business activity, or inventory due to the changes of seasons during the year
EXAMPLE:
Seasonal variation within the American toy industry is heavily influenced by Christmas holiday shopping.
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