Finance Vocabulary Terms and Definitions

A sequence is:

• a list of numbers arranged in a specific order

• a random collection of numbers

• a mathematical operation

• a type of graph

Define the term 'Term' in the context of sequences.

• A specific element or position in a sequence

• A mathematical operation

• A type of sequence

• A variable in an equation

A recurrence relation is a mathematical equation that expresses each element of a sequence as a function of the preceding ones.

• A mathematical equation that expresses each element of a sequence as a function of the preceding ones.

• A type of geometric progression.

• A method for solving linear equations.

• A statistical tool for data analysis.

Modelling in mathematics involves creating a representation of a real-world situation using mathematical concepts. What is the primary purpose of mathematical modelling?

• To solve complex equations

• To represent real-world situations

• To perform arithmetic operations

• To create artistic designs

Percentage growth means:

• The increase in value expressed as a percentage of the original value.

• The absolute increase in value over time.

• The rate at which a value decreases over time.

• The total value after growth.

What is percentage decay?

• A measure of how much a quantity decreases over time, expressed as a percentage.

• A measure of how much a quantity increases over time, expressed as a percentage.

• A measure of how much a quantity remains constant over time, expressed as a percentage.

• A measure of how much a quantity fluctuates over time, expressed as a percentage.

Define 'Principal' in financial terms.

• The initial amount of money borrowed or invested, excluding any interest or dividends.

• The interest earned on an investment over time.

• The total amount of money after interest is added.

• The rate at which interest is charged or paid.

What is meant by 'Balance' in the context of loans or investments?

• The total amount of money borrowed or invested.

• The interest rate applied to the loan or investment.

• The duration of the loan or investment.

• The monthly payment amount.

Interest in financial terms is:

• A fee paid for the use of borrowed money

• A type of investment

• A financial institution

• A form of currency

Simple interest is:

• A method to calculate interest on a loan or investment based on the original principal.

• A type of interest that compounds over time.

• An interest rate that changes monthly.

• A fee charged for late payments.