Consumer Math Vocab Review

A discount is the amount an item's cost is

• increased

• reduced

• stays the same

A mark-up means an item's cost is

• increased

• reduced

• stays the same

A tip causes the final price of a service to

• increase

• decrease

• stay the same

Sales tax causes the final price to

• increase

• decrease

• stay the same

An interest rate is

• an equation stating two ratios are equal

• usually expressed as a percent and used to calculate interest

• a percent by which a quantity increases or decreases form an original amount

• All of the above

The principal is

• The original amount invested or borrowed

• the amount of money paid for the use of borrowed money, collected yearly

• Dr. Khoshaba

Interest is the amount of money

• given to a person for a service rendered

• collected as a tax when you purchase an item

• paid for the use of borrowed money, collected yearly