averages simple arithmetic average (arithmetic mean) weighted average (weighted arithmetic mean) 32 33

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1 537 A accumulated value 298 future value of a constant-growth annuity future value of a deferred annuity 409 future value of a general annuity due 371 future value of an ordinary general annuity 360 future value of an ordinary simple annuity 348 future value of a simple annuity due 365 future value of compound interest calculations 302 addition 22. See also BEDMAS addition principle 48 algebra 39. See also algebraic equations, algebraic expressions algebraic equations addition principle 48 definition 48 division principle 48 equivalent equations 48 multiplication principle 48 principle of equations subtraction principle 48 writing equations in one variable 51 algebraic expressions addition and subtraction 41 binomial 41 coefficient 40 constant 39 constant term 40 definition 39 division of monomials by monomials 43 evaluating expressions 41 expression 40 factoring expressions with common factors 44 factors 41 like terms 41 monomial 41 multiplication 42 polynomial 41 term 40 terminology used 40 trinomial 41 unlike terms 41 variable 39, 40 amortization amortization schedule 431 amortization schedule calculating the final payment 437 calculating the principal balance 435 interest portion 431 principal portion 431 amount credited 155. See also partial payments, cash discount amount of periodic payment of an annuity 343. See also periodic payment annual salary 82. See also payroll annuity 343. See also ordinary annuity, annuity due, other types of annuities types of annuities based on compounding periods 345 types of annuities based on payment dates 344 annuity due 344. See also simple annuity due, general annuity due calculating future value 365, 371 calculating nominal interest rate 387 calculating number of payments 381 calculating periodic interest rate 387 calculating periodic payment 377 calculating present value 365, 371 calculating time period 381 arithmetic 2. See also arithmetic mean, arithmetic operations arithmetic mean 28 arithmetic operations 41 assessed value of a property 95. See also property taxes averages simple arithmetic average (arithmetic mean) weighted average (weighted arithmetic mean) B base 69 logarithms with base logarithms with base e 57 BEDMAS 22. See also brackets, exponents, division, multiplication, addition, subtraction binomial 41 bi-weekly salary 83 blended combination of the GST and PST. See also Harmonized Sales Tax (HST) bond 463 maturity date 464 purchase price 464, 465, 475 quoted Price 472 bond schedule 480 brackets 22. See also BEDMAS break-even analysis 219. See also contribution margin, cost-volume-profit analysis, loss, profit break-even chart 244 break-even point 219, 221, 222 selling price 220 total revenue 220 variable costs 220 break-even chart 244 break-even point 219, 220 break-even price break-even volume 232 C calculator 222. See also Texas Instruments BAII Plus calculator capital investments 497 Cartesian coordinate system 195 case studies applying percentages in personal and business scenarios 101 applying ratios in business 134 borrowing and investing using simple interest 293, 294 borrowing to start a business 339 cost-volume-profit analysis at a manufacturing company 256 financial planning for a secure future 428 Financing a Growing Business 461 investing for the future 338 Lease or Finance Option 401 merchandising cycle of a product: manufacturer to consumer 192 Raising Money Through Bonds 494 saving for retirement 400 cash discount cash discount terms 154 end-of-month dating ordinary dating payment terms 152 receipt-of-goods dating coefficient 40 commercial paper 286 maturity period 287 commissions base salary + commission 86, 88 graduated (variable) commission 86, 87 quota then commission 86, 88 straight commission 86 common logarithms 57

2 538 compounding frequency 298, 343 compounding period 298 compound interest 297. See also Texas Instruments BAII Plus calculator amount of compound interest 298 compounding frequencies 299 compounding period 298 definition 297 difference from simple interest 297 effective interest rate 325 equivalent interest rates 328 equivalent payments 313 future value formula 298 interest upon interest 297 nominal interest rate 299 number of compounding periods 299 periodic interest rate 299, 319 present value formula 298 time period 300 constant-growth annuity 420 future value ordinary simple constant-growth annuity present value constant growth rate 420 constant term 40 contribution margin 220. See also break-even analysis, cost-volume-profit analysis contribution ratio See also breakeven analysis, cost-volume-profit analysis cost 160 definition 161 rate of markup on cost 161 variable costs per unit 220 cost-volume-profit analysis 225. See also break-even analysis graphical approach coupon rate 464 currency appreciation and depreciation application of exchange rate fluctuation 126 currency conversion 119 buying and selling currencies 123 exchange rates 119 proportions 112 D dating 154. See also cash discounts, ordinary dating, end-of-month dating, receipt-ofgoods dating days-table 263. See also simple interest DCF. See discounted cash flow decimal 3 converting a decimal to a percentage 68 converting a percentage to a decimal 68 declining balance method 282. See also demand loan deferred annuities 407 deferred period 407 future value 409 present value 409 demand loan 282 declining balance method interest paid on a demand loan 272 partial payments 282 digit 2 discount 141. See also cash discount amount of markdown 169 amount of trade discount 142 cash discounts 152 markdown 168 rate of markdown 169 reduced profit 176 series of trade discounts 144 single equivalent trade discount rate 146 single trade discount 142 trade discounts 141 discounted cash flow 497 discounted value 298 present value of a constant-growth annuity present value of a deferred annuity 409 present value of a general annuity due 371 present value of an ordinary general annuity 360 present value of an ordinary perpetuity 416 present value of an ordinary simple annuity 353 present value of a perpetuity due 416 present value of a simple annuity due 366 present value of compound interest calculations 309 discounting and proceeds for interest-bearing note 286 for non-interest-bearing note 286 distribution chain 141. See also merchandising division 22. See also BEDMAS dividing a polynomial by a monomial 43 division principle 48 due date 274, 275 E effective interest rate 325. See also compound interest end-of-month dating 154 EOM (end-of-month) dating 154 equation 195 equivalent equation 48 linear equation 195 simple algebraic equations 48 equivalent equations 48 equivalent interest rate 328 equivalent nominal interest rate 329 equivalent periodic interest rate 329 equivalent payment 313. See also simple interest, compound interest of a series of payments in simple interest calculations 276 of a single payment in simple interest calculations 275 single payment equivalent to two payments in compound interest calculations 313 two equal payments equivalent to single payment in compound interest calculations 313 equivalent value 274 equivalent payments 274 exchange rates 119. See also currency conversion buying and selling currencies currency appreciation currency depreciation expanded form 2, 54 expert advice 404 understanding your investment options 404 exponents. See also BEDMAS convert an exponential notation to a standard notation 24 exponent 1 25 exponential notation 24 fractional exponent 55 negative exponent 25 rules of exponents zero exponent 25 expression 40. See also algebraic expressions F factors common factors 14 composite numbers 11 highest common factor 14 lowest common denominator 13 multiples 10

3 539 prime numbers 11 final value 75 percent change 75 financial calculator 222. See also Texas Instruments BAII Plus calculator first degree algebraic equation. See also linear equation focal date 276, 313 equivalent payment 276 formulas and their applications 60 definition 60 fractional exponent 55 fractions arithmetic operations with fractions comparing fractions 17 converting a fraction to an equivalent fraction 16 converting a fraction to a percentage 68, 77 converting an improper fraction into a mixed number 16 converting a percentage to a fraction 67 converting a mixed number into an improper fraction 16 definition 15 division of fractions 19 fraction in lowest (or simplest) terms 17 improper fraction 15 mixed number 15 multiplication of fractions 19 proper fraction 15 reciprocal of a fraction 15, 20, 23 reducing or simplifying a fraction 17 subtraction of fractions 18 types of fractions 15 whole number as a fraction 15 future value 298, 302, 343. See also compound interest, annuity, other types of annuities of a deferred annuity 409 of a simple annuity due 365 of a general annuity due 371 of an ordinary general annuity 360 of an ordinary simple annuity 348 of an ordinary simple constant-growth annuity G general annuity due 345. See also annuity due equivalent periodic interest rate 371 future value 371 nominal and periodic interest rates 388 periodic payment 378 present value 371 Goods and Services Tax (GST). See also sales taxes graduated commission 86 graphical approach to CVP analysis 244 graphing linear equations 198 Gross Debt Service Ratio 450 gross pay 82 gross profit 161 grouping 41 Guaranteed Investment Certificate 281 non-redeemable GIC 281 redeemable GIC 281 H highest common factor 14 hourly rate 82 hourly wages 89 I improper fraction 15 converting a mixed number into an improper fraction 16 converting an improper fraction into a mixed number 16 initial value 74 percent change 74 interest 259, 343. See also simple interest, compound interest, annuity applications of simple interest 280 calculating the compound interest terms 300 compound interest 297 definition 259 effective interest rate 325 equivalent interest rates 328 equivalent nominal rate 329 equivalent periodic interest rate 329, 360 interest paid on a demand loan 272 interest rate 298 interest rate per compounding period 298 interest upon interest 297 nominal interest rate 299, 319, 384, 387 periodic interest rate 299, 319, 384, 387 simple interest 259 simple interest rate 260 time value of money 259 interest-bearing promissory note 283. See also promissory notes internal rate of return 508 investment options bonds 404 equity investments 404 Guaranteed Investment Certificate 404 investment plans 405 investment vehicles 404 mutual funds 404 RESP 405 RRSP 405 shares 404 Treasury Bills 404 IRR. See internal rate of return L least or lowest common multiple 11 legal due date 284 like terms 41 linear equation 195. See also rectangular coordinate system consistent and inconsistent systems 206 dependent and independent equations 206 elimination method 210 graphing linear equations substitution method 209 table of values 198 linear system 206. See also linear equation list price See also trade discount logarithms common logarithms (log) 57 natural logarithms (ln) rules of logarithms 58 loss 175. See also break-even analysis, markdown M manufacturer s suggested retail price (MSRP) 141 margin 161 markdown 169. See also merchandising calculation table amount of markdown rate of markdown reduced selling price 168 markup See also merchandising calculation table amount of markup 161, 185, 237 gross profit 161 margin 161 rate of markup 161 rate of markup on cost 161 rate of markup on selling price 161 selling price 160 maturity date 284 maturity value 298. See also simple interest, compound interest mean 28 merchandising 141 merchandising calculation table 162 merchandising chain 141 mill rate 96 mixed number 15

4 540 monomial 41 monthly salary 82 mortgage closed mortgage 447 fixed rate mortgages 446 open mortgage 447 Variable rate mortgages 447 multiples 10 definition 10 lowest common multiple 11 multiplication 22. See also BEDMAS multiplication principle 48 multiplying a monomial by a monomial 42 multiplying a polynomial by a monomial 42 multiplying a polynomial by a polynomial 43 N natural logarithms 57 negative exponent 25 net income 220 net pay 82 net present value 503 net price See also trade discount nominal interest rate 299, 319, 343 non-interest-bearing promissory note 285. See also promissory notes number of compounding periods 298, 322 O operating profit 161 order of operations BEDMAS 22 calculator method to find exponent 26 exponential notation signed numbers 23 ordered pairs of numbers. See also linear system ordinary annuity 343, 344, 345. See also ordinary simple annuity, ordinary general annuity calculating future value 348, 360 calculating nominal interest rate 387 calculating number of payments 381 calculating periodic interest rate 387 calculating periodic payment 377 calculating present value 353, 360 calculating time period 381 ordinary dating 154 ordinary general annuity 345. See also ordinary annuity equivalent periodic interest rate 360 future value 360 number of compounding periods 360 periodic payment 378 present value 360 ordinary simple annuity. See also ordinary annuity future value 348 nominal and periodic interest rates 388 periodic payment 377 present value 353 origin 195 other types of annuities 406. See also deferred annuities, perpetuity, constant-growth annuity overhead expenses 161 overtime factor 82 overtime pay 85 overtime rate 82 P partial payments See also cash discount amount credited 156 two partial payments 156 payback period 511 pay for pay period 83, 185, 237 payment terms. See also ordinary dating, End- Of-Month dating, Receipt-Of-Month dating pay period 82 payroll. See also commissions annual salary 82 definition 82 gross pay 82 hourly rate 82 hourly wages net pay 82 overtime factor overtime rate 85 pay period 82 piecework rate 82, percent 67 percentages converting a decimal to a percentage 68 converting a percentage to a decimal 68 converting a percentage to a fraction definition 67 rate, portion, and base percent change definition 74 periodic cost 487 periodic interest rate 299, 319, 384, 387 periodic payment 377. See also annuity perpetuity ordinary perpetuity 416 perpetuity due 416 present value 416 piecework rate 82, 90 place value 2 3 definition 2 expanded form 2, 3 of decimal numbers 3 of whole numbers 2 standard form 2, 3 word form 2, 3 polynomial 41 portion 69 power of a power 54 power of a product 54 power of a quotient 54 pre-programmed calculator 222. See also Texas Instruments BAII Plus calculator present value 298, 309, 343. See also compound interest, annuity, other types of annuities a general annuity due 371 formula for compound interest calculations 298 of a general deferred annuity due 410 of a general perpetuity due 417 of an ordinary general annuity 360 of an ordinary general perpetuity 418 of an ordinary perpetuity 416 of an ordinary simple annuity 353 of an ordinary simple constant-growth annuity of an ordinary simple deferred annuity 409 of an ordinary simple perpetuity 417 of a simple annuity due 366 principal amount 298 principle of equations 48 product rule 54 profit (net income) 220. See also break-even analysis, markup promissory notes 283 face value 284 interest-bearing promissory note 283 maker 283 maturity date 283 non-interest-bearing promissory note 285 payee 283 term 283 property taxes assessed value of a property 95 mill rate proportions

5 541 pro-ration prospective method 435 Q quadrants 196. See also linear equation quota then commission 86, 88 quotient 16, 39, 51, 55 quotient rule 54, 58 R rate 69, 110 unit rate 110 ratio comparing quantities of items that have different kinds of measure 107 comparing quantities of items that have the same kind of measure equivalent ratio 105 expressing a ratio of more than two quantities 105 expressing a ratio of two quantities 105 order of a ratio 107 reducing a ratio to its lowest terms 105 reducing ratios to an equivalent ratio whose smallest term is one 106 sharing quantities using ratios terms of a ratio 105 ratio-proportion method 70 receipt-of-goods dating 154 rectangular coordinate system 195. See also linear equation Cartesian coordinate system 195 quadrants 196 sign convention 195 terminology 195 x-coordinate 196 x-intercept 199 y-intercept 199 reduced profit 175. See also markdown reduced selling price 168. See also markdown repeating decimals 72 retrospective method 435 return on investment. See internal rate of return R.O.G. (receipt-of-goods) dating 154 ROI. See Internal Rate of Return rounding 4 5 decimals 5, 6 definition 4 percentages 7 rules for rounding 5 whole numbers 4, 5 S sale price 175 sales taxes savings account 281 selling price 160 semi-monthly salary 82 simple algebraic equations 48 simple annuity due 345. See also annuity due future value 365 present value 366 simple arithmetic average 28 simple interest 259 maturity value 268 principal 260 p, r, t triangle 269 simple interest rate 260 time period 260 sinking fund 484 slope 199. See also rectangular coordinate system, linear equation standard form 2 standard notation 24 statutory holiday 90 straight commission 86 subtraction. See also BEDMAS subtraction principle 48 T taxes See also property taxes, sales taxes term deposits 281 term of an annuity 343 Texas Instruments BAII Plus calculator cash-flow sign convention 303 end-of-period or beginning-of-period 350 exponent 26 future value of a general annuity due 371 future value of an ordinary general annuity 361 natural logarithm 57 nominal interest rate 320 number of days in a time period 265 number of decimals to present value of an ordinary simple annuity 354 present value of a simple annuity due 368 TVM row description 303 Using the Amortization Worksheet in the BAII Plus Financial Calculator 435 time period 259, 322, 381 time period in days between dates 262 time value of money 259 total debt service ratio 450 total revenue 220 trade discount 141. See also list price, net price amount of trade discount 142 series of trade discounts 144 single equivalent trade discount rate single trade discount 142 treasury bills 286 denominations 286 trinomial 41 U unit rate 110 unlike terms 41 V variable commission 87 variable costs per unit 220 W wages 89 weekly salary 83 weighted average 32 whole number 2 word form 2 word problems 40 workweek 82 X X-axis. See also graphical approach to CVP analysis, graphing linear equations rectangular coordinate system 195 x-coordinates 195 Y Y-axis. See also graphical approach to CVP analysis, graphing linear equations rectangular coordinate system 195 y-coordinate 195 yearly salary 82 Z zero as an exponent 54 zero as a power 58