Formulas/info Flashcards
Simple Interest 1.1
- I = PRN
- Total owing = principal + interest
Interest: money earned on investment/charged on loan
Simple interest: (flat rate) interest calculated as a percentage of principal (amount invested/borrowed)
Compound Interest 1.2
- FV = PV(1+R)^2
- I = FV - PV
Compound Interest: interest added to principal + reinvested
Inflation and Appreciation 1.3
- FV = PV(1+R)^n
Inflation: increase in price of goods/services
appreciation: increase in value of an item
Investing in Shares 1.4
- DIVIDEND YIELD = dividend per share ÷ market price per share X 100
- DIVIDEND = dividend yield X market price
Share: part ownership in a company
Dividend: type of interest earned by share holders
Dividend yield: percentage of market price of share
Brokerage: commission charged by stockbrokers
Share tables and graphs 1.5
LAST SALE = market price at end of day
+ OR - = change in price from previous day
NO. SOLD (100s) = no. shares sold (100s)
52 WEEK HIGH/LOW = maximum and minimum price in 52 weeks
Share tables: daily information about shares
Straight Line Depreciation 1.6
- S = Vo-Dn
s - salvage
Vo - initial value
D - depreciation
n - no.periods
Depreciation: loss in value of asset over time
Straight line: item value decreases by same each time
Declining Balance Depreciation 1.7
- S = Vo(1-r)^n
s - salvage (current value)
Vo - initial value
r = depreciation rate
n = number of periods
Declining balance: item value decreased by some percentage each period
Ration problems 2.1
Ratio: compares two or more parts of the same type
*simplify ratio, divide both parts by the HCF
105 : 75 (÷ by 15)
7 : 5
0.04 : 0.4 (x100 to make integers)
4 : 40 (÷ by 4)
1 : 10
45cm : 3m (convert to cm)
45cm : 300cm (÷ by 15)
3 : 20
A jar of jellybeans contains one yellow, white + green in ratio 12 : 11 : 22. if there are 600g of yellow, what is the mass of white jellybeans and all jellybeans. 12 : 11 : 22 Y : W : G Y = 12 parts, 12p=600g 1p= 50g
since white=11p
11p = 50g X 11 = 550g
all parts= 12+11+22=45p
45p = 50g X 45=2250g
Dividing quantity in Ratio 2.2
- Find total number of parts by adding
- Find the size of one part by dividing
- Find size of each term of ratio by multiplying
- Check answers add to original quantity
Tim pays 30% of his weekly income of $1080 in tax. The remaining income is divided into savings + living expenses in the ratio 2:5. How much does Tim use for living expenses?
Saves 100-30=70% X 1080= $756 2 : 5 - total parts = 2+5=7p 7p = $756 (÷ by 7) 1p = $108 living expenses = 5p = 5 X $108 - $540
Rate problems 2.3
- Rate rule
write unit as fraction and solve using X/÷
e.g. beats/min = beats÷min
Unit Pricing 2.4
- UNIT PRICE = price ÷ no. items/units
Unit price: price of one item or unit
Small can:
$2.85/375g (divide)
$0.0076/g = 0.76c/g
Large can:
$5.85/750g (÷)
$0.0078/g = 0.78c/g
i.e. small can is best buy
Solving Equations 3.1
- keep equation balanced by performing same on both sides
- Aim to have variable on one side of equation + a number on the other side
Equation: contains algebraic expression and equals sign
solve: 5-x÷2 = 2
10-x = 4
-x = -6
x = 6
Formulas and Equations 3.2
M = x+y+z÷3
M=22, x=25, y=26
22= 25+26+z÷3
66=51+z
z=15
Changing the subject 3.3
y = mx+c mx+c = y c = y-mx
Linear Functions 3.4
- Form y=mx+c
- Gradient: rate of change y relative to x - m= rise÷run
- y-intercept = value of y when x = 0
Function: relationship between 2 variables
y= -2x+10
-2 is coefficient of x
10 is constant term
Direct Linear Variation 3.5
- y = kx
y - directly proportional to x
k - constant
solving a linear variation problem
- identify 2 variables and form variation equation
- substitute values for x and y to find k
- Rewrite y=kx using value of k
- Substitute a value for x or y into y=kx
Intersection of Lines 3.6
Simultaneous equations: equations solved same time
Break even point: when revenue covers the cost exactly
Reducing Balance Loan 2.1
- TOTAL PAID = loan repayment X no. repayment
- TOTAL PAID = principal + interest
Reducing balance loan: calculated on balance owing on loan original principal borrowed
Credit Cards 4.2
- DAILY INTEREST RATE = annual interest rate ÷ 365
- FV = PV(1+R)^N
- I = FV-PV
Credit cards: used to buy goods/services and pay for them later, interest can be flat/compound.
- if payment not received, interest charged from purchase date
- Interest usually charged daily using compound interest
- Monthly statement provides record of spending
Annuities 4.3
Using Table
- Determine time period and rate of interest
- Find intersection of time/rate of interest
- Multiply number w/ money contributed
Annuity: form of an investment involving regular contributions e.g. investment into super
- made at end of compound period
- earns more interest because regular/equal payments made
Future value: total value at end of term, sum of all contributions plus interest
Loan repayment tables 4.4
Loan repayment tables: enable repayments for reducing balance loans to be easily calculated
Repaying Home loans 4.5
$560000 purchase price with a $150 000 deposit over 30yrs compounding monthly at 7.2%p.a. with these fees:
- $600 loan establishment fee
- 1.4c per $1000 borrowed per month
- $3.80 per month management fee
- $720 mortgage discharge fee
Total cost of loan
P = 560 000 - 150 000 = 410 000
therefore PV = 410 000
Monthly repayments
monthly rate = 7.2÷12=0.6%/month, n=30X12 = 360 months
Scatter Plots 5.1
Scatterplot: graph of points on plane
- represents bivariate data (2 variables)
Correlation 5.2
Correlation: measure of strength of linear association or relationship between 2 variables.
Pearson’s correlation co-efficient: r, is a number between -1, +1 measuring correlation of 2 units
Line of Best fit 5.3
Line of best fit: the straight line drawn through the centre of dots with an equal number of dots above and below lone.
- The line can be used to predict values given one variable.
LINE OF BEST FIT - REGRESSION LINE (least squares line of best fit)
Speed + fuel consumption 2.5
AVERAGE SPEED = Distance travelled ÷ time taken
Speed: rate at which something is moving/changing
Fuel consumption: Rate at which a vehicle uses fuel measured in L/100km
- depends on: driving urban, towing, using A/C