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Contemporary Mathematics

Key Terms

6.1Understanding Percent

• Percent
• Fractional form
• Decimal form
• Total
• Base
• Percent of the total
• Part
• Amount

• Discount
• Cost
• Markup
• Retail price

6.3Simple Interest

• Interest
• Principal
• Annual percentage rate
• Simple interest
• Term
• Due
• Origination date
• Payoff amount
• Future value
• Partial payment
• Present value

6.4Compound Interest

• Compound interest
• Effective annual yield

6.5Making a Personal Budget

• Budget
• Necessary expenses
• Fixed expenses
• Variable expenses
• 50-30-20 budget philosophy

6.6Methods of Savings

• Savings account
• 1099 form
• Certificate of deposit
• Money market account
• Return on investment
• Ordinary annuity

6.7Investments

• Bonds
• Maturity date
• Stocks
• Dividend
• Mutual fund
• Prospectus
• Issue price
• Shares
• Stock table
• Individual retirement account
• Roth IRA
• 401(k)

6.8The Basics of Loans

• Fixed interest rate
• Variable interest rate
• Installment loan
• Loan amortization
• Revolving credit
• Amortization table
• Cost of finance

6.9Understanding Student Loans

• FAFSA
• College funding gap
• Subsidized loan
• Unsubsidized loan
• Parent loan for undergraduate students
• Private student loan
• School-channel loan
• Direct-to-consumer loan
• Standard repayment plan
• Federal consolidation
• Refinancing
• Private consolidation
• Graduated repayment plan
• Extended repayment plan
• Discretionary income
• Pay as you earn (PAYE) repayment plan
• Revised pay as you earn (REPAYE) repayment plan
• Income-based (IBR) repayment plan
• Income-contingent (ICR) repayment plan
• Delinquent
• Default
• Rehabilitation

6.10Credit Cards

• Reward program
• Annual fee
• Credit limit
• Bank-issued credit card
• Store-issued credit card
• Travel and entertainment cards
• Charge cards
• Billing period
• Balance
• Minimum payment
• Average daily balance

6.11Buying or Leasing a Car

• Title and registration fees
• Destination fee
• Documentation fee
• Dealer preparation fee
• Extended warranty
• Down payment
• Acquisition fee
• Security deposit
• Disposition fees
• Liability insurance
• Collision insurance
• Comprehensive insurance
• Uninsured or underinsured motorist insurance
• Medical payment insurance
• Personal injury insurance
• Gap insurance
• Rental reimbursement insurance

6.12Renting and Homeownership

• Lease
• Landlord
• Mortgage
• Escrow account
• Assessed value

6.13Income Tax

• Gross income
• Adjusted gross income
• Exemption
• Taxable income
• Deduction
• Tax credit
• Earned income credit
• American opportunity credit
• Lifetime learning credit
• Child tax credit
• Child and dependent care tax credit
• Premium tax credit
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