Financial Vocabulary Terms

A collection of key financial terms and their definitions for review.

Discount

The amount by which the regular price of an item is reduced.

Gratuity

Also known as a tip; a small amount of money given for a service.

Percent equation

An equation that describes the relationship between the part, whole, and percent.

Percent of decrease

A negative percent of change.

Percent of increase

A positive percent of change.

Percent proportion

A ratio that compares part of a quantity to the whole quantity; the equivalent percent written as a fraction with a denominator of 100.

Principal

The amount of money deposited or borrowed.

Sales tax

An additional amount of money charged on items that people buy.

Selling price

The price at which an item is sold after any discounts or taxes.

Simple interest

The amount paid or earned for the use of money; represented by the formula I= prt.

Tip

Also known as a gratuity; a small amount of money given for a service.