Unit 3 Summary - Financial Algebra

Front

What do we call the money that your money earns when in an account?

Back

Interest: The amount earned on an investment or deposit, typically expressed as a percentage of the principal.

Front

What is the term for the total amount of money in an account at any given time?

Back

Balance: The amount of money available in a financial account.

Front

What is the purpose of a bank statement?

Back

A bank statement is a summary of all transactions in a bank account over a specific period, showing deposits, withdrawals, and the ending balance.

Front

What is the shopping day after Thanksgiving called?

Back

Black Friday: The day following Thanksgiving in the United States, known for significant sales and shopping.

Front

What is a cashless society?

Back

A cashless society is an economic state where financial transactions are conducted through digital means rather than physical cash.

Front

How does consumer behavior change in a cashless society?

Back

Consumers are less aware of spending, as digital transactions can make it easier to lose track of expenditures.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

What is the difference between fixed and variable interest rates?

Back

Fixed interest rates remain the same throughout the loan term, while variable interest rates can change based on market conditions.

Front

What is a credit score?

Back

A credit score is a numerical representation of a person's creditworthiness, based on their credit history.

Front

What is the significance of a budget?

Back

A budget is a financial plan that helps individuals manage their income and expenses to achieve financial goals.