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Math EXAM 2
Consumer math exam 2 formulas (units 6-10)
| Term | Definition |
|---|---|
| Minimum payment made formula | Previous balance x % of previous balance (at the end of the word problem.) |
| Interest formula (interest payment) for amortization/credit card tables | Previous balance x APR/12 |
| New balance formula | Previous balance - minimum payment made + purchases + interest |
| New balance formula (with additional payment) | Previous balance - minimum payment made - additional payment + purchases + interest |
| The monthly payment formula you use is the one where APR is divided by 12. (T/F) | True. |
| Previous balance can also be called previous outstanding balance. (T/F) | True. |
| Payment to principal formula | Monthly payment - interest |
| APR might also be referred to as interest. Look for an interest rate in your question. (T/F) | True. |
| Outstanding balance formula | Loan amount (outstanding balance) - payment to principal |
| You are given your initial outstanding balance as a loan amount. (T/F) | True. EX: "You take out a $3,500 loan for 1 year..." the $3,500 is your loan amount (outstanding balance.) |
| Amount paid in formula | (Monthly payment)(12)(# of years) |
| Interest paid on loan formula | Amount paid in on loan - amount financed |
| Sometimes, the amount financed is already included in the word problem for you. (T/F) | True. |
| Amount saved formula | Interest paid on loan #1 - interest paid on loan #2 |
| Sales tax formula | (Price of car) x (Sales tax rate) |
| Amount financed formula | Price of car + Sales tax + TTL - down payment |
| Comparing 2 credit cards formula (interest) | (Balance) x (APR) of each card. Add an annual fee to the calculated interest, if applicable, then compare and see which credit card is cheaper. |
| For the amortization table, you use the new outstanding balance amount to calculate interest as the table goes down. (T/F) | True. (your outstanding balance changes, only use the original outstanding balance amount for the first row.) The same applies to calculating outstanding balance. |
| Round to the nearest penny on all amounts. When multiplying a rounded number, re-type the rounded to penny version into the calculator for the most accurate answer. (T/F) | True. |
| For monthly payment on amortization, your monthly payment STAYS THE SAME. You only calculate monthly payment once. | True. |
Created by:
FaithMcBaith
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