Business Math Unit 6 Vocabulary

What does the term "Amortized" mean in the context of business math?

• To repay a mortgage or loan gradually

• To calculate the interest on a loan

• To assess the value of a property

• To depreciate the value of an asset over time

What is the "Assessed Value" of a property used for?

• Determining the selling price of a property

• Calculating the amount of tax based on the property's value

• Estimating the insurance coverage needed for a property

• Setting the rental price of a property

What does "Base Price" refer to?

• The initial cost of a property before taxes

• The price of a vehicle with all standard features as shown in the buyer's guide

• The final selling price of a product including all additional fees

• The cost of manufacturing a product

What is covered under a "Coinsurance Policy"?

• Total loss of property due to natural disasters

• A stated percent of the value of the property for insurance purposes

• All liabilities related to property damage

• The full value of the property without deductions

What is the purpose of "Depreciation" in business accounting?

• To increase the value of an asset over time

• To calculate the loss in value of property due to aging and use

• To determine the resale value of an asset

• To assess damage to property for insurance claims

What does "Equity" represent in real estate?

• The total debts owed on a property

• The initial cost of purchasing a home

• The difference between what is owed on a home and its value

• The rental income from a property

What does a Fixed Rate Mortgage guarantee regarding the interest rate?

• The interest rate changes based on market conditions.

• The interest rate is variable for the first five years only.

• The same rate of interest is paid for the life of the loan.

• The interest rate decreases annually.

What is primarily covered by Homeowners Insurance?

• Vehicle theft and accidents.

• Personal injuries occurring outside the home.

• Home and protection against other risks.

• Travel and holiday accidents.

What is the purpose of a Lease?

• To purchase a property outright.

• To enter into a rental agreement.

• To insure a vehicle.

• To sell a property.

What does the Lease Term specify?

• The cost of the lease.

• The length of the lease, usually stated in months.

• The number of properties leased.

• The penalties for breaking the lease.