everything for fin. math Flashcards
credit limit
max you can borrow
amount financed
total amount borrowed - any down payment … amount borrowed by lender
histogram vs bar graph
bar graphs = categorial data (ex. types of fruits)
histogram = continuous data (ex. heights of people)
cash discount calculation
- multiply invoice amount by cash discount rate
- subtract from invoice amount if payment is made within discount period
min. payment
smallest payment you can pay each month
L to qt
1 L = 1 qt
simple average
used when each value has equal importance, calculated same as mean
upfront costs
purchase price, taxes, registration fees
compound interest
calculated on principal amount and accumulated interest
markdown
amount reduced from original price to lower selling price
mode
the value that appears more often in a set of data
ADB (average daily balance)
the balance averaged over the billing period
APR
yearly interest rate
chain discount
multiple discounts applied in sequence
inch to cm
1 inch = 2.5 cm
principal amount
original amount of money borrowed/invested
finance charge formula
finance charge = principal * interest rate * time
markup formula
cost * markup rate
trade discount
a reduction off the list price for items
rate
percentage that is applied to base
depreciation
a value decreasing over time
three main types of averages
mean, median, mode
installment credit
allows to borrow a fixed amount and repay in set payments (auto loans)
median
middle number in a set of numbers that have been arranged in order
median formula
odd: number is in the middle
even: average of two middle numbers
base
original value or whole amount from which percentage is taken
finance charge
cost of borrowing money or using credit (includes interest & other fees)
installment price
total of all payments over the loan term
oz to ml
1 oz = 30 ml
chain discount calculation
- convert each discount to a decimal
- multiply the decimals in sequence with list price to get final price
interest rate
cost of borrowing money, usually percentage of amount owed
percentage formula
percentage = base * rate
mean
average of a set of numbers
sales tax formula
purchase price * tax rate
kg to lbs
1 kg = 2.2 lbs
mean formula
sum of all numbers/amount of numbers
installment payment formula
divide the total cost by the number of payments
accumulated interest
total amount of interested earned but not paid off
consumer credit
any credit extended to individuals to buy goods and services, usually with the agreement to pay back with interest
billing cycle
time period between bill statements
simple interest formula
simple interest = principal * rate * time
new balance formula
previous balance + new purchases - payments + finance charge
revolving credit
flexible, borrow up to a limit but might pay high-interest rates
base, rate, part formula
part = base * rate
simple interest
calculated only on principal amount (original amount of money borrowed/invested)
markup
amount added to original cost to determine selling price
credit score
represents your creditworthiness based on credit history, 300-850
mi to km
1 mi = 1.6 km
credit report
detailed report of your credit history
trade discount calculation
- multiply the list price by trade discount rate
- subtract from list price to find net selling price
2/10, net 30
2% discount if paid in 10 days, otherwise full payment in 30 days
cash discount
a discount for paying an invoice within a specified period, often used as incentive for early payment
installment credit
fixed payments, lower interest
20% of 50 is 10
base = 50
rate = 20%
percentage/part = 10
ongoing costs
insurance, fuel, maintenance
L to gal
1 L = 0.26 gal
oz to g
1 oz = 28 g
m to ft
1 m = 3 ft
revolving credit
allows to borrow up to a certain limit and pay off balance at end of month
markdown formula
original price * markdown rate
percentage/part
result of applying rate to base
weighted average
used when values have different importances, formula = (value * weight)/weights
total purchase price with interest
principal + (principal * interest rate * time)
