Math in Personal Finance Vocabulary

What is an annuity?

• A single large payment

• A series of equal deposits or payments

• A type of loan

• A financial liability

What does budgeting involve?

• Investing in stocks

• Allocating an individual’s income to cover their expenses

• Calculating interest

• Saving for retirement

What is compounding in finance?

• Calculating taxes

• Interest generated on previously earned interest

• A type of financial asset

• A method of budgeting

Which of the following is considered a financial asset?

• Credit card debt

• Money in bank accounts

• Monthly rent

• Utility bills

What does financial net worth represent?

• Total income earned in a year

• Individual or family’s financial assets minus financial liabilities

• Amount of money spent on expenses

• Total value of investments

What is the field of study concerned with numbers, quantity, shapes, and the relationships among them?

• Physics

• Chemistry

• Mathematics

• Biology

What are parts of whole numbers expressed in hundredths and followed by a percent symbol called?

• Fractions

• Decimals

• Percentages

• Ratios

What is the process of managing personal assets to achieve economic satisfaction known as?

• Investment Banking

• Personal Financial Planning

• Corporate Finance

• Economic Analysis

Which tool helps individuals effectively manage their personal finances?

• Personal Financial Tools

• Accounting Software

• Tax Calculators

• Budget Sheets

What is the interest computed on the principal, excluding previously earned interest, called?

• Compound Interest

• Simple Interest

• Annual Interest

• Accrued Interest