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) - Answer-Interest that is compounded annually
A - Answer-accumulated balance after Y years
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) - Answer-Interest that is compounded annually
A - Answer-accumulated balance after Y years
