Math 110 Terms/Definitions Module 1-
with accurate answers
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Simple one time Interest - Answers-Interest where there is a Flat % rate only calculated once for entire duration of loan (Amount of time does not matter)
P0 - Answers-represents initial amount of loan
r - Answers-represents interest rate percentage as a decimal
Simple Interest Over Time - Answers-A sum of money (typically a bond or loan) where interest is paid multiple times at specified time.
t - Answers-represents time
APR (Annual Percentage Rate) - Answers-A specific/set amount of interest divided up evenly over the course of time. (6% monthly APR = 6 divided by 12 months = 0.5)
Compound interest - Answers-Interest earned on top of previous interest (Always greater than interest in initial months.)
Example: Bank accounts over time
N - Answers-number of years
PN - Answers-Balance after N years
k - Answers-number of compounding periods in one year
m - Answers-number of months that have passed
Certificate of Deposit - Answers-At banks: Put your money into a locked account that only opens after a set period of time. The accounts have higher interest rates.
^ - Answers-exponents button (Used for multiplying "to the power of"
PN - Answers-PN is the balance in the account after N years.
d - Answers-d is the regular deposit (the amount you deposit each year, each month, etc.)
r - Answers-r is the annual interest rate in decimal form.
k - Answers-k is the number of compounding periods in one year.
Compounding Frequency v.s deposit frequency - Answers-If the compounding frequency is not explicitly stated, assume there are the same number of compounds in a
year as there are deposits made in a year.
with accurate answers
--
Simple one time Interest - Answers-Interest where there is a Flat % rate only calculated once for entire duration of loan (Amount of time does not matter)
P0 - Answers-represents initial amount of loan
r - Answers-represents interest rate percentage as a decimal
Simple Interest Over Time - Answers-A sum of money (typically a bond or loan) where interest is paid multiple times at specified time.
t - Answers-represents time
APR (Annual Percentage Rate) - Answers-A specific/set amount of interest divided up evenly over the course of time. (6% monthly APR = 6 divided by 12 months = 0.5)
Compound interest - Answers-Interest earned on top of previous interest (Always greater than interest in initial months.)
Example: Bank accounts over time
N - Answers-number of years
PN - Answers-Balance after N years
k - Answers-number of compounding periods in one year
m - Answers-number of months that have passed
Certificate of Deposit - Answers-At banks: Put your money into a locked account that only opens after a set period of time. The accounts have higher interest rates.
^ - Answers-exponents button (Used for multiplying "to the power of"
PN - Answers-PN is the balance in the account after N years.
d - Answers-d is the regular deposit (the amount you deposit each year, each month, etc.)
r - Answers-r is the annual interest rate in decimal form.
k - Answers-k is the number of compounding periods in one year.
Compounding Frequency v.s deposit frequency - Answers-If the compounding frequency is not explicitly stated, assume there are the same number of compounds in a
year as there are deposits made in a year.
