Math 155
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Created by:
teenagemayhemx on October 31, 2011
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39 terms
Terms | Definitions |
|---|---|
 Percent | Just a fancy way of saying "divided by 100." Percentage = (Part/Whole) * 100 |
| Absolute Change | The actual increase or decrease from a reference value to a new value. Absolute Change = New Value - Reference Value |
| Relative Change | A fraction that describes the size of the absolute change in comparison to the reference value. Relative Change = Absolute Change/Reference Value |
| Absolute Difference | The actual difference between the compared value and the reference value. Absolute difference = compared value - reference value |
| Relative Difference | The size of the absolute difference as a fraction of the reference value. Relative difference = Absolute difference/reference value |
| The Relation of "Of" to "More Than" | Using more than states an increase in the percentage. Using of states a ration of the new percentage to the original. |
| Interest | The charge for the privilege of borrowing money, typically expressed as an annual percentage rate. |
| Principle | The money being borrowed. |
| Simple Interest | Interest that is charged only once over the life of the loan. ***I = PRT |
| APY | Annual percentage yield. Applied to any investment but not typically a mortgage, to compare investments with different or no compounding schemes. |
| Compound Interest | Interest paid on the principal plus any previously accrued interest. A = P(1+r)^t |
| Installment Loan | The loan is paid back in small equal periodic payments. |
| Periodic Rate | The interest rate described in relation to a specific amount of time. For example, the Monthly Periodic Rate is the cost of credit per month; the Daily Periodic Rate is the cost of credit per day |
| Revolving Credit | a credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off, it becomes available again to use for another purchase or cash advance |
| Grace Period | length of time you have before you start accumulating interest |
| Down Payment | upfront payment of a portion of a purchase price, thereby reducing the balance. |
| Mortgage | a long-term loan extended to someone who buys property |
| Fixed Rate Mortgage | A mortgage in which the interest rate does not change during the entire term of the loan. |
| Adjustable Rate Mortgage | Has an interest rate that increases or decreases during the life of the loan. |
| Balloon Mortgage | a mortgage in which the entire remaining balance of the loan is due in one single payment |
| Capital Gains | money that is made ( a profit) by selling an asset like a home or stocks |
| Dividend | The part of the earnings of a corporation that is distributed to its shareholders |
| Gross Income | the total amount of income from wages before any payroll deductions |
| Adjusted Gross Income | Is your gross income after certain reductions have been made |
| Exemption | a deduction allowed to a taxpayer because of his status (having certain dependents or being blind or being over 65 etc.) |
| Deduction | a reduction in the gross amount on which a tax is calculated |
| Taxable Income | income on which tax must be paid; total income minus exemptions and deductions |
| Total Tax | the tax computation based on tax table or rate computation minus any tax credits |
| Tax Refund | A check returning the taxpayers money to the taxpayer after tax retuns are filed and the over paid tax is determined. |
| Filing Status | Single or Married. |
| Standard Deduction | A stated amount that you may subtract from adjusted gross income instead of itemizing your deductions |
| Itemized Deduction | a specific expense, such as mortgage interest, that you deduct from your adjusted gross income. |
| Progressive Income Tax | a tax that takes a larger percentage of higher incomes than lower incomes |
| Marginal Tax Rates | Change in taxes paid divided by changes in taxable income |
| FICA | Federal Insurance Contributions Act |
| Short Term Capital Gains | holding period of 12 months or less, taxed as ordinary income |
| Long Term Capital Gains | holding period of more than 12 months, taxed as capital gains |
| Tax-Deferred Savings Plans | Money that you put into saving plans that is not taxed. |
| Continuous Compounding | A = pe^rt |
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