Applied Math Chapter 8 Flashcard

Front

What is the formula to calculate the maturity value of a loan?

Back

Maturity Value = Principal + (Principal × Rate × Time) where Rate is in decimal and Time is in years.

Front

How do you calculate the down payment on a purchase?

Back

Down Payment = Purchase Price × Down Payment Percentage.

Front

What is the exact interest formula?

Back

Exact Interest = Principal × Rate × Time, where Time is expressed in years.

Front

How do you convert days into years for interest calculations?

Back

Time in years = Number of days / 365.

Front

What is 40% of a number?

Back

To find 40% of a number, multiply the number by 0.40.

Front

How do you calculate the amount financed after a down payment?

Back

Amount Financed = Purchase Price - Down Payment.

Front

What is the significance of the term 'exact interest'?

Back

Exact interest refers to the calculation of interest based on the actual number of days in the loan period.

Front

How do you find the total cost of a loan after interest?

Back

Total Cost = Principal + Interest.

Front

What is the relationship between principal, rate, and time in interest calculations?

Back

Interest is directly proportional to the principal and the rate, and directly proportional to the time.

Front

How do you calculate the interest earned on a loan for a specific period?

Back

Interest = Principal × Rate × Time.