Consumer Math
Vocabulary
Savings Accounts
Simple Interest
Compund Interest
100
6% expressed as a decimal
What is .06
100
What is left in your savings account after you deposit or withdraw money.
What is the balance.
100
Hanging onto your money for a future use instead of spending it. The opposite of spending.
What is saving
100
The formula for solving simple interest problems.
What is I=P x R x T
100
The first step in calculating compund interest using this formula
What is P x I = interest for the year
200
17% expressed as a decimal
What is .17
200
A plan you create for controlling spending and encourage saving.
What is a budget
200
The take money out of an account
What is withdraw
200
The amount of the original investment is called
What is the principle
200
The second step to in calculating compund interest; you take the result of P x I = interest for the year and
What is divide it by the number of compounding periods.
300
5 1/5% expressed as a decimal
What is .0520
300
Money or goods you owe
What is a debt
300
To put money into an account
What is deposit
300
The formula used to calculate the total amount owed
What is A= P* (1 + r*t)
300
The number or compounding periods in monthly
What is 12
400
20% off of $144.00
What is $28.80
400
Things you pay money for - both needs and wants
What are expenses
400
How you earn money on the money you have in your saving account.
What is interest
400
Formula used to calculate when a specific amount of interest has been earned.
What is r = I/(P*T)
400
Number of compounding periods in a quarterly account
What is 4
500
If a new computer is originally $645.00 and you have a coupon for 15% off, what will the new price of the computer be?
What is $548.25
500
The next best alternative that is given up when a choice is made.
What is opportunity cost.
500
An account that pays you money for keeping your money it. Banks pay you for using these accounts because they can use your money to provide loans.
What is a savings account.
500
How much interest does an $10,000 investment earn at 5.6% over 28 years?
What is $10,080
500
Amy deposited $8,500 in a savings account that paid 2% compunded quarterly. What was the balance after the first quarter (first 3 months)
What is $8542.50 8500 x .02 = 170/4=42.50 8500 + 42.50 = 8542.50
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