Vocabulary (Semester 1) Flashcards
Interest
The amount of money accumulated on a savings/checking account
Annual Percentage Rate (APR)
The interest rate charged per year
Appreciate
To grow in value over time
Available Credit
Difference between the maximum amount allowed on a credit card and the amount currently owed
Average Daily Balance
The average amount owed per day during a billing cycle
Balloon Payment
The tendency of the last payment on a loan/mortgage to be a lot higher than the past payments
Bodily Injury (BI) Liability
Insurance covering injury to the driver during an accident
Box-and-Whisker Plot
Shows the quartile values and overall concentration/spread of data
Certificate of Deposit (CD)
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
Charge Card
A type of credit card that requires all monthly bills to be paid in full
Collateral
A physical item offered to ensure that a loan will be repaid in full
Collision Insurance
Type of insurance that pays for the damage/replacement of a vehicle in a crash
Comprehensive Insurance
Insurance that covers the repair/replacement of car parts due to natural disasters. Also covers the cost if the car is stolen
Cosigner
A person that signs a promissory note alongside the borrower, agreeing that they will pay back the loan if the borrower is unable to
Credits
Deposits/payments into an account that decreases the balance (negative)
Credit Card
The use of credit in which the card holder does not have to pay at the moment of purchase
Credit Line
The maximum credit that can be loaded on a card at any time
Creditor
Organizations that extends credit to debtors
Debits
Withdrawals/spending out of an account (positive)
Debit Card
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
Debtor
Anyone who utilizes credit
Deductible
The amount the driver owes the insurance company for the use of their insurance claims when needed
Depreciate
To decrease in value over time
Down Payment
The minimum amount owed on a service or item before a loan can be extended
Ending Balance
The amount of money in a checking account
Fair Credit Reporting Act
This law protects the debtor in case of errors on their credit card statement when they confront their credit card company about them
FICO Score
The most common type of credit score that summarizes the likelihood of a debtor repaying their debts. Numbers range from 300-850
Finance Charge
The interest calculated using the average daily balance during a billing period multiplied by the monthly percentage rate
Fuel Economy
The relationship between gas mileage and distance traveled
Installment Plan
A method of payment that allows the customer to use the product/service over time while still paying it off
Interquartile Range (IQR)
The difference between the upper and lower quartiles (Q3-Q1) that shows where a majority of the average data lies
Late Charge
An additional charge added to the credit card statement for not getting the previous month’s payment in by the payment date
Maturity
The specific date at which all interest will be paid off on a CD
Mean
The average of a data set
Median
The middlemost set of data when ranked numerically
Minimum Balance
The minimum amount of money that must be kept in an account in order for the account to function
Minimum Payment
The lowest possible payment the credit card company will accept each billing cycle. Often draws out debt
Mode
The most frequently occurring number in a set of data
Modified Boxplot
A box-and-whisker plot that shows outliers as well
New Balance
The amount currently owed on a credit card
Outlier
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)
Premium
The amount paid for an insurance policy based on your records. Can increase after an accident
Prepayment Penalty
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
Prepayment Privilege
The ability some loans extend allowing for borrowers to pay off the loan before it is due to reduce the amount of interest
Loan
A set amount borrowed from the bank or another lending agency that will be paid back over a period of time
Previous Balance
Any money owed prior to the current billing cycle (finance charge included)
Principal
The starting balance/amount
Promissory Note
An agreement which states the conditions of a loan and how long it will take to pay it off
Property Damage (PD) Liability
Insurance coverage that pays for the damage a driver causes to others’ property
Quartile
Values that represent quarters of the data set
Range
The measure of the dispersion of a data set
Starting Balance
The amount of money in a checking account when it is first created
Stem-and-Leaf Plot
Easily shows the mode and mean of a data set by splitting the numbers into 2 columns
Surcharge
An extra fee paid on top of car insurance for dividing the premium into annual, quarterly, or semiannual payments
Transaction
A purchase
Truth in Lending Act
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
Wage Assignment
A voluntary deduction from an employee’s paycheck used to pay off debts
Pinnacle Point
When invested money makes more than personal income for said individual
Personal Injury Protection (PIP)
Insurance that covers harm done to the driver and their passengers after an accident
Uninsured Motorist Protection
Insurance that steps in if the person who caused the accident isn’t insured
