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Financial Algebra > Vocabulary (Semester 2) > Flashcards

Vocabulary (Semester 2) Flashcards

(77 cards)

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1
Q

Employment Agencies

A

Businesses that assist in the job finding process and require a fee paid when employment is found

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2
Q

Semimonthly

A

Collecting payment twice a month (n=24)

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3
Q

Monthly

A

Collecting payment every month (n=12)

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4
Q

Bi-Weekly

A

Collecting payment every other week (n=26)

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5
Q

Weekly

A

Collecting payment every week (n=52)

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6
Q

W-4 Forms

A

Forms completed by employers that calculate how much of the taxes you pay they need to withhold

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7
Q

Piecewise Function

A

Set of equations that work together and build off of each separate calculation

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8
Q

Overtime Pay

A

The rate employers pay their employees when they work over 40 hours a week (usually 1.5 times their regular earnings)

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9
Q

Commission

A

A percent of the product’s profit is received by the salesperson

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10
Q

Royalties

A

The sum of money paid for the use of a product to the developer (which in turn publicizes their work)

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11
Q

Piecework Wages

A

Money is earned based on product production

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12
Q

Pension

A

Type of deferred compensation that is collected annually based on average salaries, years worked for the company, and a multiplier

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13
Q

Social Security

A

Type of federal tax that forces employers to withhold 6.2% of wages up to a yearly cap that is later collected during retirement

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14
Q

Medicare

A

Another federal tax that assists seniors and those with disabilities in old age; employers only withhold 1.45% of wages

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15
Q

Payroll Taxes

A

Social Security and Medicare taxes that show up on paystubs

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16
Q

Income Taxes

A

Tax deducted from gross income based on where the individual falls in the tax bracket

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17
Q

Gift Tax

A

40% paid on gifts of $14,000 or greater

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18
Q

Excise Tax

A

Small taxes on cigarettes and alcohol to discourage unhealthy habits

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19
Q

Sales Tax

A

Percent of the price paid for goods/services

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20
Q

Property Taxes

A

Taxes paid on property that funds local police, schools, and parks

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21
Q

Estate Tax

A

Tax on estates over $5.34 million when the owner passes away

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22
Q

Regressive Tax

A

Levies the same percentage on products purchased regardless of the buyer’s income (those with a lower income end up paying larger portions of their income in these taxes)

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23
Q

Proportional Tax

A

Applies same tax rate to all individuals regardless of income

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24
Q

Progressive Tax

A

When the percentage levied is bracketed so that a taxpayer only pays the higher rate on the difference of their income from the last step’s max amount

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25
Gross Pay
The total pay an employee earns before taxes
26
Net Pay
The employee's take-home pay after tax deductions
27
Form W-2
A compiled representation of the employee's year to date (YTD) tax deductions which is used to submit federal, state, and local taxes
28
Cafeteria Plan
Section 125 allows employees to hold back portions of their pre-tax wages for medical/childcare insurance
29
Flexible Spending Account
An account that holds pre-tax money to be used in specific areas and reduces taxable income
30
Form 1099
Representation of a taxpayer's other sources of income besides wages, salaries, and tips (usually includes interests, stocks, commissions, and royalties)
31
Form 1040 EZ
The simplest form used for no deductions
32
Form 1040 A
A form simpler than 1040 and includes deductions and dependents status and benefits
33
Exemption
A reduction in your taxable income for each individual that you claim as dependent on your income
34
Standard Deduction
A basis deduction based on filing status
35
Tax Deduction
Factors that can reduce the taxable income
36
Tax Credit
Directly reduces tax (money paid forward from the previous year)
37
Itemized Deductions
Personal spendings that can qualify for tax deductions (disaster loss, property tax, mortgage interest, charitable donations); outlined by Schedule A
38
Tenant
The person renting a place (living there)
39
Landlord
The person renting out the property (owner)
40
Lease
A written agreement between tenant and landlord detailing the amount of rent owed and length of the rent
41
Application Deposit
The amount (sometimes refundable) for processing the rental application
42
Security Deposit
The money owed to protect the landlord from damage repair; refunded to the tenant if no damage is present
43
Apothem
The distance from the middle of a regular polygon to any midpoints of its sides
44
British Thermal Units (BTUs)
Units used to calculate the size of an AC that can successfully cool a room
45
Market Value
How much a house is priced at
46
Assessed Value
Value of the home assessed by a type of realtor that takes into account your assets and modifications
47
Mortgage
Home loan
48
Forclosure
When a house payment is not made (on time) so the person is evicted from the property
49
Escrow
Separate fund set aside for house payments
50
Front End Ratio
Monthly Housing Expenses/Monthly Gross Income must be less than or equal to 28% to be approved for mortgages
51
Back End Ratio
Total Monthly Expenses/Monthly Gross Income must be less than or equal to 36% for loan approval
52
Balloon Mortgage
When the monthly payment schedule for a home loan starts out low with a large final payment
53
Interest-Only Mortgage
Requires small payments of interest until the last payment which pays off the entire loan all at once
54
Closing
Meeting between buyer, seller, and attorneys when the house is actually sold
55
Earnest Money Deposits
Money paid by the interested buyer to show the commitment to the sale
56
Attorney Fees
Paid to attorney's representation at closing
57
Origination Fees
Fees for loan paperwork
58
Prepaid Interest
Money accrued throughout the month that will cover the time from closing to the next payment due date
59
Transfer Tax
Charge for transfer of the title of ownership
60
Amortization Table
A table breaking down how much of the monthly mortgage payment will go towards the principal vs the interest
61
Maintenance Fee
Costs for maintaining the place you are renting that can go towards landscaping/repairs
62
Cooperative
When each person owns a part of the property
63
Equity
When the value of an asset is more than what you are paying (subtracting liabilities from the value of assets)
64
Traditional IRA
An individual retirement arrangement that is tax-deferred, meaning that income taxes are paid upon withdrawal (including the interest)
65
Roth IRA
An individual retirement arrangement that is tax-exempt, meaning that the money deposited is taxed and no tax is required upon withdrawal; can withdraw the entire investment penalty-free but NOT the growth
66
Social Security Credit
"Points" earned from income that determine SS benefits later in life; can only earn up to 4 credits each year
67
Single Life Annuity
Life insurance that has higher monthly payments but is only paid to the policyholder
68
Qualified Joint and Survivor Annuity
Life insurance policy with lower monthly payments that are paid to the person earning the pension OR their designated survivor if they pass away
69
Lump-Sum Payment
Collection of total pension funds at a single time (life insurance)
70
Vesting
Outlined formula per place of employment that details what percentage of the pension an individual will earn based on years worked
71
Beneficiary
The person chosen by the policyholder that receives life insurance benefits
72
Premiums
The amount paid for the policy
73
Term Life Insurance
Provides protection for a specified period of time
74
Level Term Insurance
The death benefit is the same over the entire term of the policy
75
Permanent Life Insurance
Lifetime coverage up until a specified age that is usually combined with investment accounts
76
Face Value
The amount of coverage that a policy provides
77
Cash Value
The investment portion of a life insurance policy

Financial Algebra (4 decks)

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