# Math 155

### 39 terms by teenagemayhemx

#### Study  only

Flashcards Flashcards

Scatter Scatter

Scatter Scatter

## Create a new folder

### 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.

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

### 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.

### 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.

A = pe^rt

Example: