660 IndexListed shares, 253
Load, 554
Loan(s); see also Term of a loan
annuity present values and, 174–175
calculating simple interest for, 8
consolidations and refinancing, 186–188
discount loans, 57
in disguise, 8–9
extra payments, 186
finding total interest for, 175–176
remaining balance of, 185–186
sinking funds with, 164–165
Loan consolidations/refinancings, 186–188
Loan date, 31
Loan to value (LTV), 434
Loan to value percentage, 434
London Interbank Offered Rate (LIBOR), 435
Long position, 276
Long-term assets/liabilities, 500
Loss leaders, 347
Luxury taxes, 407M
MACRS; see Modified Accelerated Cost Recovery
System (MACRS)
Major medical policy, 538
Malpractice insurance, 525
Managed care, 540–541
Manufacturer’s suggested retail price (MSRP),
342, 351
Margin; see Profit margin
Margin call/margin, 279
Markdown, 334–336
Market index, 620
Market price, 277
Markup and markdown, 332–337
comparison of, 336–337
markup based on cost, 333–334
markup based on selling price, 345–346
markup percentage, 334
nonprice situations, 337
Marriage penalty, 389
Matching, 309, 317
Maturity date, 32, 57
Maturity value, 32, 57–58, 60
Mean, 618
Measures of average, 616–623
expected frequency and expected value,
622–623
indexes, 620–622
mean and median, 617–618
weighted average, 618–620
Measures of central tendency, 617
Measures of dispersion, 627
Measures of variation, 626–631
Median, 617–618
Medicaid, 537
Medical insurance, 525
Medicare, 392, 537, 585
Microsoft Excel; see Spreadsheets
Midrange, 618
Mills, 401
Mixed numbers, 6
Mode, 618
Modified Accelerated Cost Recovery System
(MACRS), 369–370
Money market funds, 296
Monthly mortgage payments
adjustable-rate loans, 437
fixed loan, 436–437
total monthly payment (PITI), 439–440Mortality charge, 554
Mortgage(s), 433–444
additional monthly expenses, 437–439
APRs and, 437
calculating monthly payments, 436–437
escrows, 438
language of, 433–435
points and payback period, 443
qualifying for, 440–441
total monthly payment (PITI), 439–440
types of loans, 435–436
up-front expenses, 441–443
Multiplication, notation for, 5
Multiplier, 283
Municipal bonds (“munis”), 268
Mutual companies, 523
Mutual funds, 289, 295–296
average rate of return, 297
measuring performance of, 297–298
types of, 296N
NASDAQ, 253
Negative amortization, 436
spreadsheet for, 231–233
Negative equity, 435
Negative gross margin, 345
Negative interest rates, 74
Negative net profit margin, 345
Negotiable notes, 71
Net amount at risk, 555
Net asset value (NAV), 295
Net income, 487, 490
Net pay, 580, 584
Net present value, 569
Net profit, 343, 487
Net profit margin, 343–345, 508–509
Net sales, 489
Net sales per day, 510–511
Net worth, 499
New York Mercantile Exchange, 276
New York Stock Exchange, 253
No-closing cost loans, 443
No-fault insurance, 530
No-load fund, 296
No par value, 251
Nominal rates, 116, 119
converting from effective rates, 132
effective interest rates vs., 127–129
Nonannual annuities, 152–154
spreadsheet for, 222–223
Nonannual compounding, 102–104
compound interest formula, 102–104
Rule of 72, 110
solving for interest rate, 132
Nonannual interest rates, 44–46
converting from annual rate, 45–46
converting to annual rate, 44–45
other units of time, 46
Nonforfeiture options, 553
Normal distribution, 630
North American Free Trade Agreement
(NAFTA), 407
Notes; see Promissory notesO
Offered (buying) rate, 478
On credit, 355, 449
One-year term, 550Open-end mutual fund, 295
Open-enrollment period, 586
Open interest, 282
Operating expenses, 490
Option(s), 274, 280–281
abstract options, 283
on futures, 283–284
uses and dangers of, 294
Options chain, 282
Options market, 282
Options writer, 280
Order of operations, 92–93
Ordinal date, 33
Ordinary annuity, 143
future value of, 146, 156
present value of, 168
Ordinary income, 389
Out-of-pocket maximum, 539
Overhead costs/expenses, 345
Overtime differential, 582
Overtime pay, 582
Owner’s equity, 499P
Par value, 251, 263
Parameter, 617n
Partial year depreciation, 368
Partnership, 251
distributing profits of, 253
Patriot Bonds, 58
Payback period, 444, 573
Payback period method, 572–576
comparisons with, 575
more involved calculations, 574–575
where payments vary, 576
Payday lender, 66
Payroll, 580–588
calculating net pay, 584–586
commission pay, 584
hourly employees, 582–583
payroll deductions, 584–586
piece rate pay, 583
salary, 581
Payroll deductions, 584–586
Payroll taxes, 585; see also Income and
payroll taxes
employer payroll taxes, 587–588
Pension, 307
Pension actuaries, 315
Per annum, 7, 9
Percent (declining-balance) depreciation, 363
Percents, 4
converting percent to a decimal, 4–5
fractional percents, 6
working with, 4, 6
Periodic inventory valuation, 596–597
Perpetual vs. periodic inventory valuation, 596–597
Perpetuities, 566–568
Personal income taxes, 386–389
alternative minimum tax (AMT), 389
calculation of, 387–389
income tax rates (2006), 387–389
self-employment tax, 393
tax exemptions and deductions, 386
tax filing, 391–392
tax withholding, 390–391
taxable income, 386
total tax, 387
Personal property tax, 398
Pie charts, 609–610
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