Final Exam Review
Math 101, Winter 2008
Proportion -- A proportion is an equation with a ratio on each side. It is a statement that two
ratios are equal. (5.2)
Percent – a percentage is a way of expressing a number as a fraction of 100 (per cent meaning
"per hundred"). It is often denoted using the percent sign, "%". (6.2, 6.3)
Simple interest – Simple interest is calculated on the original principal only. Accumulated
interest from prior periods is not used in calculations for the following periods. (11.1)
Maturity value – The amount to be paid to the holder of a financial obligation at the
obligation's maturity. In the case of a bond, the maturity value is the principal amount of the
bond to be paid by the issuer to the owner at maturity. (11.1)
Range – The range of a set of data is the difference between the highest and lowest values in
the set. (7.3)
Mean – The mean is the arithmetic average of a set of values. (7.1)
Median – a median is described as the number separating the higher half of a sample. (7.1)
Gross pay – pre-tax wages. (10.1)
Trade discount -- A discount on the list price granted by a manufacturer or wholesaler to buyers
in the same trade. (8.1, 8.2)
Single discount equivalent – the percentage discount equivalent to a series of discounts. (8.2)
Partial payment – money paid toward an invoice which is less than the total. (8.3)
Markup -- the increase in the price of goods to create a profit margin for a business. (9.1, 9.2)
Compound interest -- the concept of adding accumulated interest back to the principal, so that
interest is earned on interest from that moment on. The act of declaring interest to be principal
is called compounding (i.e. interest is compounded). (13.1, 13.2)
Proceeds -- Money received through a sale or loan. (11.3)
Net pay -- the remaining amount after deductions from the gross salary. (10.2)
Bar graph -- a chart with rectangular bars of lengths proportional to that value that they
represent. Bar charts are used for comparing two or more values. The bars can be horizontally
or vertically oriented. Sometimes a stretched graphic is used instead of a solid bar. (7.2)
Ordinary interest – daily simple interest calculated for 360 days per year. (11.2)
Ordinary time – assumes there are 30 days in each month and 360 days in each year. (11.2)
Exact interest – daily simple interest calculated for 365 days per year (11.2)
Exact time – assumes there are the actual number of days in each month and 365 days in each
year. (11.2)
Mortgage -- A mortgage is a method of using property (real or personal) as security for the
performance of an obligation, usually the payment of a debt. (15.1)
Cost of goods sold -- the direct costs attributable to the production of the goods sold by a
company. This amount includes the materials cost used in creating the good along with the
direct labor costs used to produce the good. (17.1)
Depreciation -- used in accounting, economics and finance with reference to the fact that
assets with finite lives lose value over time. (16.1)