Opportunity Cost

Definition

The potential benefits that an individual, investor, or business misses out on when choosing one alternative over another.

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Rent vs Buy Comparison

In Rent vs Buy analysis, the "Opportunity Cost" of buying is the investment return you could have earned if you had invested your down payment in the stock market instead of locking it up in home equity.

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1099 Form

A series of documents the IRS refers to as "information returns".

401(k)

A feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts.

Amortization

The process of spreading out a loan into a series of fixed payments over time. You'll be paying off interest and principal in different amounts each month, although your total payment remains equal.

Angel Investor

A high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company.

APR (Annual Percentage Rate)

The annual rate charged for borrowing or earned through an investment. APR includes not just the interest rate but also other fees or costs involved in procuring the loan.

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This tool is for illustrative purposes only and does not constitute professional financial, tax, or legal advice. Calculations are estimates and may not reflect real-world variables or local regulations. Always consult with a qualified professional before making financial decisions.