math 8.4 voca / formula
If interest is compounded once a year, the formula that gives the money, A, in an account after t years at rate r is _______, where P is the original principal.
A = P ( 1 + r ) < t
If a problem involves compound interest, which of the following formulas can you use to find interest paid or earned?
I = A - P only
If a problem involves compound interest, which of the following formulas can you use to find interest paid or earned? I = Prt I = A - P
I = A - P only
With a/an , IRA you pay taxes on the money you deposit, but you can withdraw your earnings tax-free beginning when you are years old
Roth 59 1/2
Some formulas contain the variable pmt. What does this variable mean?
The amount of money you pay on a regular basis to pay off a loan; or the amount of money you invest on a regular basis. (periodic payment)
Determine whether the statement is true or false. If the statement is false, make the necessary change(s) to produce a true statement. Financial advisors suggest spending no more than 5% of your gross monthly income for your mortgage payment.
The statement is false. The true statement is "Financial advisors suggest spending no more than 28% of your gross monthly income for your mortgage payment
Determine whether the statement is true or false. If the statement is false, make the necessary change(s) to produce a true statement. Renters can build up equity as the rent is paid each month.
The statement is false. The true statement is "Renters cannot build up equity as the rent is paid each month."
Determine whether the statement is true of false. If the statement is false, make the necessary change(s) to produce a true statement. Over the life of an installment loan, the interest portion increases and the portion applied to paying off the principal decreases with each successive payment.
The statement is false. To make the statement true, switch "increases" and "decreases".
According to the Rule of 72, an investment with an effective annual yield of 9%can double in eight years
The statement is true because if you divide 72 by the effective annual yield without the percent sign, you will get eight years.
Determine whether the following statement is true or false. If the statement is false, make the necessary change(s) to produce a true statement. With the same interest rate, compounding period, and time period, a lump-sum deposit will generate more interest than an annuity.
The statement is true because with the same interest rate, compounding period, and time period, a lump-sum deposit will generate more interest than an annuity
Determine whether the statement is true or false. If the statement is false, make the necessary change(s) to produce a true statement. A traditional IRA requires paying taxes when withdrawing money from the account at age 59 1/2 or older.
The statement is true.
Determine whether the statement is true or false. If the statement is false, make the necessary change(s) to produce a true statement. Renters are not required to pay property taxes.
The statement is true.
Interest that is calculated on principal AND on any accrued interest
compound interest
Interest that is calculated on principal AND on any accrued interest.
compound interest
If you are selecting the best investment from two or more investments, the best choice is the account with the greatest _, which is the _ interest rate that produces the same amount of money at the end of one year as when the account is subject to compound interest at a stated rate.
effective annually yeild simple
to points at closing/ sales price
goes to bank
A document showing how each monthly installment payment is split between interest and principal is called a/an _______.
loan amortization schedule
A long-term installment loan for the purpose of buying a home is called a/an The portion of the sale price of the home that the buyer initially pays to the seller is called the
mortage down payment
Compound interest is interest computed on the _______ as well as on any accumulated _______.
original principal interest.
The effective annual or effective rate is a that produces the same amount of money in an account at the end of one year as when the account is subjected to compound interest at a stated rate
simple interest rate
If compound interest is paid twice per year, the compounding period is _ month(s) and the interest is compounded _
six semiannually
The formula A = ( 1 + r / n) < n x t gives the amount of money, A, in an account after _ years at rate _ subject to compound interest paid _ times per year.
t r n
If compound interest is paid four times per year, the compounding period is _______ months and the interest is compounded _______.
three quarterly
Required Down Payment
to seller
