Quantitative Literacy Exam Review
Budget - answer keeping track of how much money you have coming in and going out
and then deciding what adjustments you need to make
cash flow - answer subtracting your monthly expenses from your monthly income
Premium - answer The amount you pay to purchase the policy often paid once or twice
a year
Deductible - answer the amount you are personally responsible for before the insurance
company will pay anything
Co-payment - answer the amount you pay each time you use a particular service that is
covered by the insurance policy
Principal - answer the amount of money on which interest is paid
Simple Interest - answer interest paid only on your initial investment
Compound Interest - answer Interest that the bank pays you on the interest as well as
on the original principal
Annual Percentage Rate (APR) - answerInterest that is compounded annually
A - answeraccumulated balance after Y years
P - answerstarting principal
APR - answerAnnual Percentage Rate
Y - answernumber of years
Annual Percentage Yield - answerthe actual percentage by which a balance increases
in one year
Savings Plan - answerdepositing small amounts on a regular basis
total return - answerthe percentage change in the investment value
annual return - answerthe average annual rate at which your money grows
Budget - answer keeping track of how much money you have coming in and going out
and then deciding what adjustments you need to make
cash flow - answer subtracting your monthly expenses from your monthly income
Premium - answer The amount you pay to purchase the policy often paid once or twice
a year
Deductible - answer the amount you are personally responsible for before the insurance
company will pay anything
Co-payment - answer the amount you pay each time you use a particular service that is
covered by the insurance policy
Principal - answer the amount of money on which interest is paid
Simple Interest - answer interest paid only on your initial investment
Compound Interest - answer Interest that the bank pays you on the interest as well as
on the original principal
Annual Percentage Rate (APR) - answerInterest that is compounded annually
A - answeraccumulated balance after Y years
P - answerstarting principal
APR - answerAnnual Percentage Rate
Y - answernumber of years
Annual Percentage Yield - answerthe actual percentage by which a balance increases
in one year
Savings Plan - answerdepositing small amounts on a regular basis
total return - answerthe percentage change in the investment value
annual return - answerthe average annual rate at which your money grows
