## MATH QUIZ 2

##### Created by:

regggg  on November 2, 2011

Pop out
No Messages

# MATH QUIZ 2

 Annuityany collection of equal payments made at regular time intervals
1/30
Preview our new flashcards mode!

Order by

#### Definitions

Annuity any collection of equal payments made at regular time intervals
Annuity's future value a sum of money to which an annuity's payments and interest accumulate in the end
annuity's present value a sum of money paid at the beginning of an annuity
ordinary annuity an annuity whose payments are made at the end of each time period
annuity due an annuity whose payments are made at the beginning of each time period
future value annuity factor the future value that would accumulate if each annuity payment was \$1
present value annuity factor the present value if each annuity payment was \$1
sinking fund an annuity for which the amount of the payments is determined by the future value desired
amortization the process of repaying a loan by making all payments of equal size
amortization table provides a payment-by-payment detail of how each dollar paid on a loan is allocated
dividend yield expressing a stock's dividend rate as a percent to make comparisons more meaningful
yield to maturity measure of a bond's interest rate that will be earned assuming the bond is held to maturity
junk bonds bonds of issuers whose ratings suggest there is cause for concern
net asset value value of one share of a mutual fund
investment portfolio a mix of investments in different securities
asset allocation how an investor decides to divide his portfolio among different asset classes
open end a type of mutual find that does not have a fixed number of shares
load a fee paid when a mutual fund is purchased
defined benefit plan retirement program that provides a set income in retirement
defined contribution plan employer contributes money to a retirement account for each employee on the basis of some set formula
vested what you become in a retirement plan when you accumulate a certain number of years of service
step-vesting tells what percent of benefits you are entitled to when you leave and depends on your years of service
ira a special type account that can be set up by an individual to save for retirement
roth ira contributions to this IRA are not tax deductible but their investment growth is not taxed while the money is in the account
401K type of retirement account offered as a benefit by employers and money contributed to this account is not included in
taxable income
inflation the tendency of prices to rise over time
Sales tax imposed by state and/or local governments on retail sales
taxable income the portion on income subject to tax
exemption an amount of nontaxable income for each person who can be claimed as a dependent
fica Federal insurance contributions act (includes social security and medicare)

### First Time Here?

Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.