Math 110 Terms/Definitions Module 1
Study online at https://quizlet.com/_dfxouh
1. Simple one time Interest where there is a Flat % rate only calculated once for entire duration of loan
Interest (Amount of time does not matter)
2. P0 represents initial amount of loan
3. r represents interest rate percentage as a decimal
4. Simple Interest A sum of money (typically a bond or loan) where interest is paid multiple times at
Over Time specified time.
5. t represents time
6. APR (Annual Per- A specific/set amount of interest divided up evenly over the course of time. (6%
centage Rate) monthly APR = 6 divided by 12 months = 0.5)
7. Compound inter- Interest earned on top of previous interest (Always greater than interest in initial
est months.)
Example: Bank accounts over time
8. N number of years
9. PN Balance after N years
10. k number of compounding periods in one year
11. m number of months that have passed
12. Certificate of De- At banks: Put your money into a locked account that only opens after a set period
posit of time. The accounts have higher interest rates.
13. ^ exponents button (Used for multiplying "to the power of"
14. PN PN is the balance in the account after N years.
15. d d is the regular deposit (the amount you deposit each year, each month, etc.)
1/2
Study online at https://quizlet.com/_dfxouh
1. Simple one time Interest where there is a Flat % rate only calculated once for entire duration of loan
Interest (Amount of time does not matter)
2. P0 represents initial amount of loan
3. r represents interest rate percentage as a decimal
4. Simple Interest A sum of money (typically a bond or loan) where interest is paid multiple times at
Over Time specified time.
5. t represents time
6. APR (Annual Per- A specific/set amount of interest divided up evenly over the course of time. (6%
centage Rate) monthly APR = 6 divided by 12 months = 0.5)
7. Compound inter- Interest earned on top of previous interest (Always greater than interest in initial
est months.)
Example: Bank accounts over time
8. N number of years
9. PN Balance after N years
10. k number of compounding periods in one year
11. m number of months that have passed
12. Certificate of De- At banks: Put your money into a locked account that only opens after a set period
posit of time. The accounts have higher interest rates.
13. ^ exponents button (Used for multiplying "to the power of"
14. PN PN is the balance in the account after N years.
15. d d is the regular deposit (the amount you deposit each year, each month, etc.)
1/2
