MB Essential Math 40S key terms

The percentage of a loan or investment balance charged or earned over one full year, usually stated as a nominal rate that may be compounded more often than once per year.

Interest calculated on the original principal plus all interest already added, so the balance grows faster than with simple interest over the same period and rate.

Interest computed only on the original principal for the whole term, never on previously earned interest, giving straight-line growth of the balance.

The original amount of money borrowed, invested, or owed before any interest, fees, or payments are applied to it.

The interval of time between times when interest is calculated and added to the balance, such as monthly, quarterly, or annually.

The stated annual interest rate before adjusting for how often interest is compounded; it does not by itself show the true yearly growth of a balance.

The true yearly growth rate of a balance once compounding is taken into account, allowing fair comparison of loans or investments that compound on different schedules.

The amount a present sum or a series of deposits will be worth at a stated future date when interest at a given rate has been applied.

The amount of money today that would grow to a stated future amount at a given interest rate, found by reversing the compounding calculation.

The process of reducing a future amount to its equivalent value today by applying an interest rate backwards through time.

A series of equal payments made at regular intervals over a fixed term, such as monthly loan payments or regular retirement deposits.

The gradual repayment of a debt through scheduled payments, where each payment covers interest owed first and reduces principal with the remainder.

A table listing each payment on a loan, splitting it into interest and principal portions and showing the remaining balance after every payment.

The smallest amount a cardholder must pay by the due date, typically a small percentage of the balance plus interest, which keeps the account in good standing.

Purchasing goods or services now and paying for them later, often with interest or fees added, so the total cost exceeds the cash price.

The portion of a purchase price paid in cash at the time of sale, with the remainder financed through a loan or credit agreement.

A plan that lists expected income and planned expenses for a period, used to control spending and to check whether income covers obligations.

Take-home pay after deductions such as income tax, pension contributions, and union dues have been subtracted from gross earnings.

Total earnings before any deductions, taxes, or other withholdings are subtracted from a paycheque or annual salary.

An amount withheld from gross pay or subtracted from income, such as income tax, employment insurance, pension contributions, or benefit premiums.

A cost that stays roughly the same from one budget period to the next, such as rent, insurance premiums, or a car loan payment.

A cost that changes in amount or frequency from period to period, such as groceries, fuel, entertainment, or utility bills.

The cost of one unit of a product, found by dividing the total price by the number of units, used to compare the value of different package sizes.

The option among comparable products that offers the lowest cost per unit or per unit of measure, determined by comparing unit prices.

An equation stating that two ratios are equal, used to scale a known relationship up or down to solve for an unknown quantity.

A comparison of two quantities by division, often written with a colon or as a fraction, showing how much of one quantity exists relative to another.

A ratio that compares quantities measured in different units, such as kilometres per hour, dollars per hour, or cost per kilogram.

The multiplier that relates a measurement on a scale drawing or model to the corresponding real measurement, preserving shape while changing size.

A diagram in which every length is a fixed fraction of the real length it represents, so the drawing is similar in shape to the original object.

Two shapes with equal corresponding angles and proportional corresponding side lengths; one is an enlarged or reduced copy of the other.

The total area of all outer faces of a three-dimensional object, measured in square units and used to estimate materials such as paint or wrapping.

The amount of space a three-dimensional object occupies, measured in cubic units and calculated from its dimensions using a shape-specific formula.

The amount a container can hold, often expressed in litres or millilitres and related to volume through unit conversion.

Changing a measurement from one unit to another by multiplying by a conversion factor, such as converting metres to feet or litres to gallons.

The arithmetic average of a data set, found by adding all values and dividing by the number of values; sensitive to extreme values.

The middle value of a data set arranged in order, or the average of the two middle values when the count of data points is even.

The value or values that occur most frequently in a data set; a set may have one mode, several modes, or none.

A number from zero to one describing how likely an event is, calculated as favourable outcomes divided by total equally likely outcomes.

A comparison of favourable outcomes to unfavourable outcomes for an event, often written as a ratio and different from probability.

The complete set of all possible distinct outcomes of a random experiment, used as the denominator basis when computing theoretical probabilities.