Financial Algebra Review

Front

How do you represent 11% as a decimal?

Back

0.11

Front

What is the snowball method for managing debt?

Back

Pay the minimum amount on all debt and then put the rest toward your lowest balance debt.

Front

What are the three main components of any loan?

Back

The principal, the interest rate, and the loan term.

Front

What does the Avalanche Method for managing debt involve?

Back

Paying the minimum on all your debt then putting what's left toward the highest interest rate loan.

Front

What factors contribute to the cheapest monthly payment on a mortgage?

Back

Good Credit Score and 20% Down Payment.

Front

What is the formula to convert a percentage to a decimal?

Back

Divide the percentage by 100.

Front

What is the principal in a loan?

Back

The original sum of money borrowed or invested.

Front

What is an interest rate?

Back

The percentage of a loan charged as interest to the borrower.

Front

What is the loan term?

Back

The duration over which the loan must be repaid.

Front

What is the difference between the snowball and avalanche methods of debt repayment?

Back

Snowball focuses on paying off the smallest debts first, while Avalanche focuses on paying off the highest interest debts first.