F1.1 Interest & Depreciation
Glossary
the total amount of money borrowed or invested
principal
an amount earned from investing a sum of money
interest
interest earned on the principal and the accumulated interest
compound interest
interest calculated only on the principal amount
simple interest
percentage earned
on the principal amount
interest rate
the gradual decrease in an asset’s value over time
depreciation
an asset's value decreases by the same amount each year
straight line depreciation
the amount that an asset can be sold for
salvage value
the final value of an investment
future value
the increase in
the price of goods
inflation
the time interval
when interest is added
to the principal
compounding period
four times per year
quarterly
Interest & Depreciation - Practice
F1.2 Earning & Managing Money
Glossary
money earned based on hours worked
wage
a fixed regular payment for work, usually paid monthly
salary
earnings based on sales, often percentage-based.
commission
extra work beyond regular hours paid at a higher rate
overtime
extra money paid on top of a wage during holidays
leave loading
a percentage of the sales
of a book or music
royalties
a fixed payment for
work completed
piecework
total income
before deductions
gross income
income after deduction
net income
expenses that reduce taxable income
allowable tax deductions
gross income minus allowable tax deductions
taxable income
a charge paid by income tax payers to support the health system
Medicae Levy
Earning and Managing Money - Practice
F1.3 Budgeting & Household Expenses
Glossary
costs associated with
living in a home
household bills
balancing income
with expenses
budgeting
financial protection for vehicle damage, theft,
or liability risks
car insurance
a tax calculated on the purchase price of a car
Stamp Duty
calculated in L/100km
fuel consumption
maintenance, repairs, fuel, improvements
car running costs