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Gematmw > Consumer math > Flashcards

Consumer math Flashcards

1
Q

A debt provided by one entity, an individual or organization to another entity

A

Loan

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2
Q

Ownerships can be quantified by

A

Dividing the # of shares owned by the # of shares issued

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3
Q

For compound interest,
Annually —> n = ?
Semi-Annually, quarterly, monthly

A

n = 1, n = 2, n = 4, n = 12

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4
Q

Token reward paid to the shareholders for their investment in a company’s equity

A

Dividend

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5
Q

Profit expressed in %

A

Return on Investment (ROI)

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6
Q

Ways to invest

A

Opening a savings account, time deposit account, stocks, bonds

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7
Q

Represents the shares of ownership in a company

A

Stocks

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8
Q

Compound interest [SAVINGS ACC]

A

F = (1 + r/n) ^ n(t)
CI: I = F - P

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9
Q

Maturity value [LOANS]

A

F = P + I or F = P (1 + rt)

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10
Q

Measures the gain / loss generated on an investment relative to the amt of the money invested

A

Return on Investment (ROI)

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11
Q

Profit per share formula

A

M - P (average price) + dividend per share

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12
Q

Simple Interest formula [LOAN]

A

I = Prt

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13
Q

Ways to earn money from stocks

A

When earnings are paid out to u in the form of DIVIDENDS

When there is an increase in share price

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14
Q

On a time deposit account, money is insured up to ____

A

₱500,000 by the (PDIC)

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15
Q

Total price at which u bought a grp of shares + the commission and transaction fees divided by the total # of shares

A

Average price (P)

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16
Q

Interest earned on time deposits is subject to withholding tax of ____

A

20%. When computing interest earned, MULT by 0.8 to deduct the 20% tax

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17
Q

As business grows, a challenge faced is raising enough money for its expansion, how is this solved?

A

Either borrow money from a bank or sell part of the business to investors

18
Q

What’s the best investment option?

A

Depends on your investment goals and when you need the money

19
Q

Cash price formula

A

CP = down payment (DP) + P

20
Q

Difference of bonds and stocks

A

Stocks are NOT loans but represent partial ownership in a company/business

21
Q

How does simple and compound interest work on savings account?

A

Simple is computed based on the original amount (principal) u deposit. U only gain interest on the principal.
Compound is on the original amount and also on the interest earned in the previous period.

Interest remains constant in all periods for simple.

22
Q

Total price at which u sold a grp of shares minus the fees, divided by the total # of shares

A

Average market value (M)

23
Q

When you loan to a company / gov

A

They promise to pay u back in full w regular interest payments (bonds)

24
Q

Total profit formula

A

Profit per share * # of shares

25
Q

Terminating a time deposit acc or withdrawing money BEFORE the maturity date will result to a ______ from the bank

A

Penalty

26
Q

Factors affecting SI

A

Principal: og amount deposited
Rate: annual rate set by the bank and is computed on P (always divide the % by 100)
Time: time between the origin and the withdrawal dates

27
Q

Essentials of a savings account

A
  1. Bank pays u INTEREST on the money that you leave in your acc
  2. U can deposit and withdraw ANYTIME
  3. Ur money is ensured up to ₱500,000 thru ph deposit insurance corp (PDIC)
28
Q

Money will be kept by the bank for a fixed period of time for an interest rate higher than savings acc

A

Time deposit acc

29
Q

Formula of several regular payment

A

P (r/m)
R = ———-
1 - (1 + r/m)^-t(m)

30
Q

Different types of loans

A

One - time payment, several regular payments

31
Q

Owners of the shares in a business are called

A

Shareholders/stockholders

32
Q

Sequence of equal payments made regularly

A

Annuity (several regular payment)

33
Q

If more people want to buy stock than sell it

A

Share price moves up and the value of ur initial investment
(Increase share price)

34
Q

Difference of time deposit account and savings account

A

They both earn either SI or CI but time deposit is subject to 20% tax

35
Q

Represents a unit of ownership of a company’s profits and assets

A

Share

36
Q

Compound Interest formula [LOAN]

A

F = P (1 + r/n) ^ (n)(t)

37
Q
A
38
Q

Amount of each payment is referred to as the _______

A

Regular payment (R)

39
Q

Loan to a company or government

A

Bonds

40
Q

When a company makes money, it has 2 options

A
  1. Re-invest the money in the company by expanding new operations (Ex: buying equipments)
  2. Use profit to pay its investors, money paid to investors r called dividends
41
Q

Which one is greater, simple or compound?

A

The interest is greater in compound interest

42
Q

A loan is a debt provided by one entity to another entity at a __________

A

Interest rate

Gematmw (2 decks)

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