FINANCIAL ACRONYMS
CAN I BORROW SOME $?
CHARGE IT!
NAME THAT FORMULA
TAXES & SAVINGS
100
PV
What is present value?
100
This loan is for the purchase of a home.
What is a mortgage?
100
An approved "loan" that you can carry in your pocket.
What is a credit card?
100
P*R*T
What is simple interest?
100
A system of taxation in which the marginal tax rate increases for higher incomes.
What is a Progressive Tax?
200
APR
What is annual percentage rate?
200
Monthly payments are made on this loan, which is for a fixed period of time, usually less than seven years.
What is an installment loan?
200
It's the least amount you must pay each month.
What is the minimum payment?
200
PV(1 + r/n)^(nt)
What is future value?
200
This tax plan would tax everyone at the same rate.
What is a flat tax?
300
IRA
What is individual retirement account?
300
The part of the principal that you have paid, or what you actually "own".
What is equity?
300
The amount you will pay to VISA if you don't pay the full amount owed each month.
What is finance charge?
300
72 / APR
What is the time it takes for money to double?
300
You can lower your taxable income by these: state and local taxes, home mortgage interest, and charitable contributions.
What are itemized deductions?
400
APY
What is annual percentage yield?
400
The loan for a home with the same interest rate over the life of loan.
What is a fixed mortgage loan?
400
You can get money today, but you'll pay for it.
What is a cash advance?
400
[amount borrowed x (r/n) x (1+r/n)^(nt)]/[(1+r/n)^(nt)-1]
What is the monthly payment?
400
This arrangement allows withdrawals on both the principal and the interest from your nest egg.
What is an annuity?
500
ARM
What is adjustable rate mortgage?
500
If you want to know how much interest or principal that you have paid on your loan, look up one of these.
What is an amortization schedule?
500
Some people utilize this so that they can payoff a higher interest-bearing credit card.
What is a balance transfer?
500
1(1+r/n)^(n*1) - 1
What is APY?
500
The balance of your retirement account at the time of retirement.
What is a nest egg?
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