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Financial & Math Glossary

25 terms explained in plain English

A B C D E F G H I M N P R S T

A

APR (Annual Percentage Rate) The yearly cost of borrowing including interest and fees, expressed as a percentage. Amortization The process of paying off a loan through regular payments that cover both principal and interest. Aspect Ratio The proportional relationship between the width and height of an image or screen.

B

BMI (Body Mass Index) A ratio of weight to height used to screen for weight categories. Weight (kg) divided by height (m) squared. Binary A base-2 number system using only 0 and 1, the foundation of all digital computing. Body Fat Percentage The proportion of total body weight that is fat tissue, measured as a percentage.

C

Compound Interest Interest calculated on both the initial principal and the accumulated interest from previous periods. Calorie Deficit Consuming fewer calories than your body burns, forcing it to use stored energy (fat) for fuel.

D

Down Payment The upfront cash you pay when purchasing a home or car, reducing the loan amount. Due Date (Pregnancy) The estimated date of delivery, calculated as 280 days (40 weeks) from the first day of the last menstrual period.

E

Equity The portion of an asset you actually own — market value minus what you owe.

F

Fraction A number representing a part of a whole, written as a numerator over a denominator.

G

GPA (Grade Point Average) A standardized measure of academic achievement on a 4.0 scale.

H

Hexadecimal Color Code A 6-character code representing a color as red, green, and blue values in base-16.

I

Inflation The rate at which prices increase over time, reducing the purchasing power of money.

M

Macronutrients (Macros) The three nutrient categories that provide calories: protein (4 cal/g), carbs (4 cal/g), and fat (9 cal/g). Mortgage A loan used to purchase real estate, secured by the property itself as collateral.

N

Net Worth Total assets minus total liabilities — the single best measure of financial health.

P

PMI (Private Mortgage Insurance) Insurance required when your down payment is less than 20%, protecting the lender if you default. Percentage A number expressed as a fraction of 100, used to describe proportions, changes, and comparisons.

R

ROI (Return on Investment) The percentage gain or loss on an investment relative to its cost. Refinance Replacing an existing loan with a new one, typically at a lower rate or different term.

S

Subnet Mask A number that defines which portion of an IP address identifies the network vs the individual device. Sleep Cycle A 90-minute pattern of four sleep stages that repeats 4-6 times per night.

T

TDEE (Total Daily Energy Expenditure) The total number of calories your body burns in a day, including all activity.