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Financial Algebra > Vocabulary (Semester 1) > Flashcards

Vocabulary (Semester 1) Flashcards

1
Q

Interest

A

The amount of money accumulated on a savings/checking account

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2
Q

Annual Percentage Rate (APR)

A

The interest rate charged per year

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3
Q

Appreciate

A

To grow in value over time

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4
Q

Available Credit

A

Difference between the maximum amount allowed on a credit card and the amount currently owed

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5
Q

Average Daily Balance

A

The average amount owed per day during a billing cycle

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6
Q

Balloon Payment

A

The tendency of the last payment on a loan/mortgage to be a lot higher than the past payments

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7
Q

Bodily Injury (BI) Liability

A

Insurance covering injury to the driver during an accident

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8
Q

Box-and-Whisker Plot

A

Shows the quartile values and overall concentration/spread of data

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9
Q

Certificate of Deposit (CD)

A

Bank certificate that states the specific sum of money on a deposit and guarantees a fixed interest rate for a period of time outlined in the statement. No deposits or withdrawals can be made on a CD

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10
Q

Charge Card

A

A type of credit card that requires all monthly bills to be paid in full

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11
Q

Collateral

A

A physical item offered to ensure that a loan will be repaid in full

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12
Q

Collision Insurance

A

Type of insurance that pays for the damage/replacement of a vehicle in a crash

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13
Q

Comprehensive Insurance

A

Insurance that covers the repair/replacement of car parts due to natural disasters. Also covers the cost if the car is stolen

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14
Q

Cosigner

A

A person that signs a promissory note alongside the borrower, agreeing that they will pay back the loan if the borrower is unable to

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15
Q

Credits

A

Deposits/payments into an account that decreases the balance (negative)

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16
Q

Credit Card

A

The use of credit in which the card holder does not have to pay at the moment of purchase

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17
Q

Credit Line

A

The maximum credit that can be loaded on a card at any time

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18
Q

Creditor

A

Organizations that extends credit to debtors

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19
Q

Debits

A

Withdrawals/spending out of an account (positive)

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20
Q

Debit Card

A

A card that can sustain withdrawals and deposits, but must have a pre-loaded balance sufficient enough to make the payments the card is used for

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21
Q

Debtor

A

Anyone who utilizes credit

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22
Q

Deductible

A

The amount the driver owes the insurance company for the use of their insurance claims when needed

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23
Q

Depreciate

A

To decrease in value over time

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24
Q

Down Payment

A

The minimum amount owed on a service or item before a loan can be extended

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25
Q

Ending Balance

A

The amount of money in a checking account

26
Q

Fair Credit Reporting Act

A

This law protects the debtor in case of errors on their credit card statement when they confront their credit card company about them

27
Q

FICO Score

A

The most common type of credit score that summarizes the likelihood of a debtor repaying their debts. Numbers range from 300-850

28
Q

Finance Charge

A

The interest calculated using the average daily balance during a billing period multiplied by the monthly percentage rate

29
Q

Fuel Economy

A

The relationship between gas mileage and distance traveled

30
Q

Installment Plan

A

A method of payment that allows the customer to use the product/service over time while still paying it off

31
Q

Interquartile Range (IQR)

A

The difference between the upper and lower quartiles (Q3-Q1) that shows where a majority of the average data lies

32
Q

Late Charge

A

An additional charge added to the credit card statement for not getting the previous month’s payment in by the payment date

33
Q

Maturity

A

The specific date at which all interest will be paid off on a CD

34
Q

Mean

A

The average of a data set

35
Q

Median

A

The middlemost set of data when ranked numerically

36
Q

Minimum Balance

A

The minimum amount of money that must be kept in an account in order for the account to function

37
Q

Minimum Payment

A

The lowest possible payment the credit card company will accept each billing cycle. Often draws out debt

38
Q

Mode

A

The most frequently occurring number in a set of data

39
Q

Modified Boxplot

A

A box-and-whisker plot that shows outliers as well

40
Q

New Balance

A

The amount currently owed on a credit card

41
Q

Outlier

A

A piece of data that skews the set and does not align closely with a majority of the other numbers. Can be found by using Q1-1.5(IQR) or Q3+1.5(IQR)

42
Q

Premium

A

The amount paid for an insurance policy based on your records. Can increase after an accident

43
Q

Prepayment Penalty

A

The amount outlined in the loan statement that will be charged if the borrower tries to make payments that will reduce the longevity of the loan

44
Q

Prepayment Privilege

A

The ability some loans extend allowing for borrowers to pay off the loan before it is due to reduce the amount of interest

45
Q

Loan

A

A set amount borrowed from the bank or another lending agency that will be paid back over a period of time

46
Q

Previous Balance

A

Any money owed prior to the current billing cycle (finance charge included)

47
Q

Principal

A

The starting balance/amount

48
Q

Promissory Note

A

An agreement which states the conditions of a loan and how long it will take to pay it off

49
Q

Property Damage (PD) Liability

A

Insurance coverage that pays for the damage a driver causes to others’ property

50
Q

Quartile

A

Values that represent quarters of the data set

51
Q

Range

A

The measure of the dispersion of a data set

52
Q

Starting Balance

A

The amount of money in a checking account when it is first created

53
Q

Stem-and-Leaf Plot

A

Easily shows the mode and mean of a data set by splitting the numbers into 2 columns

54
Q

Surcharge

A

An extra fee paid on top of car insurance for dividing the premium into annual, quarterly, or semiannual payments

55
Q

Transaction

A

A purchase

56
Q

Truth in Lending Act

A

This law protects a credit card holder from charges on their card if it is lost/stolen for anything above $50 before reporting their card as lost to their credit card company

57
Q

Wage Assignment

A

A voluntary deduction from an employee’s paycheck used to pay off debts

58
Q

Pinnacle Point

A

When invested money makes more than personal income for said individual

59
Q

Personal Injury Protection (PIP)

A

Insurance that covers harm done to the driver and their passengers after an accident

60
Q

Uninsured Motorist Protection

A

Insurance that steps in if the person who caused the accident isn’t insured

Financial Algebra (4 decks)

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