Gerver R.K., Sgroi R.J. Financial Algebra
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554 Index
Checking accounts, 114, 116–122,
167. See also Statement recon-
ciliation
Check-off matrix, 496–498
Check registers, 119
Checks, 116
Chg (change in stock prices), 10
Child care leave, 310
Child Care Tax Credit, 366
Chord, in accident reconstruction,
277–278
Chung, Connie, 252, 257
Cicero, Marcus Tullius, 384
CIGNA, Inc., 49
Circles
circumference of, 153
graphs based on, 231
sectors and central angles of, 499
Classified ads
for cars, 218–223
for housing, 386–387
for jobs, 291–292
Clearing, check, 116
Cliff vesting, in retirement plans, 456
Closing, in home purchase, 411
Closing costs, in home purchases,
411–414
Closing prices, of stock
in candlestick charts, 19
defined, 9
mean of, 22–24
stock splits and, 47–48
Clustering, of data, 227
Coca-Cola Co., Inc., 3, 39, 63
Coefficients
correlation, 70, 72, 387
leading, 86–87
Collateral, 182
Collision insurance, 239–240
Columns, in budget matrix, 496
Commissions, payment by, 40, 303–309
Common stock, 51
Compound interest, 131, 137–155
advantages of, 143–145
continuous, 150–155
explanation of, 137–142
formula for, 146–149
See also Retirement, planning for
Comprehensive insurance, 238–240
Computers, 489
Condominiums, 384, 422–429
Confucius, 288
Congruent sides, 396
Consumer credit. See Credit, consumer
Consumer Credit Counseling
Service, 511
Consumer finance companies, 182
Consumer Price Index (CPI), 457
Consumer spending, 520
Cook, Scott, 437
Co-op housing, 384, 422–429
Corporate bonds, 54
Corporations
defined, 4
dividends of, 51–56
logos of, 108
stock splits of, 45–50
Correlation, 64, 66, 387
Correlation coefficient (r), 70,
72, 387
Cosigner, of loans, 181
Cost of living adjustments (COLAs),
457–459
Counterfeiting, 115, 168
Credit, consumer, 172–215
assessment on, 211–215
credit cards, 193–210
average daily balance on,
206–210
fi nance charges on, 195–199
overview, 193–194
statement for, 200–205
introduction to, 174–180
loans, 181–192
payments on, 183–186
regression analysis for, 187–192
sources of, 182
terminology for, 181–182
Credit calendar, 210
Credit cards, 193–210
average daily balance on, 206–210
bank, 131
finance charges on, 195–199
limited damage waivers with, 283
numbers of, 173, 213
overview, 193–194
statement for, 200–205
Crediting accounts, 137
Credit line, on credit card
statement, 201
Creditors, 174
Credit rating, 174, 177
Credit reporting agencies, 175
Credit risk, 211. See also Credit
scores
Credits
in check registers, 119
Social Security, 449
tax, 366, 373
Credit scores, 174–175, 177
Credit unions, 182
Crossovers, in moving averages, 26
Cuban, Mark, 51, 55
Cubic feet (ccf), natural gas
measured in, 482
Cubic function, 190
Cubic regression equation, 190
Currency
counterfeiting, 115, 168
denominations of, 481, 522
exchange rates of, 264
Cusp, of graphs, 221
Customized tickers, 32
D
Daily compounding, 137
Daily money flow, 32
Dashboards of cars, data on, 259
Dassler, Adolph (Adi), 3
Data
automobile accident investigation,
274–281
automobile safety, 268–273
driving, 259–267
historical, 252
outliers in, 225, 228
range of, 226
simple moving averages of,
22–28
skewed, 225
univariate and bivariate, 64
Data, on stocks
daily, 9–15
display of, 16–21
ticker transmittal of, 29–34
“Date backwards,” 210
Debit cards, 131, 194, 198
Debits, in check registers, 119
Debits/credits, on credit card
statement, 201
Debtors, 174
Debt reduction planning, 517
Debt-to-income ratio, 406, 517
Decca Records, Inc., 109
Decimals, 37, 261. See also Percents
and ratios
Decreasing term life insurance, 465
Deductible amounts, in auto
insurance, 240
Deductions
from paychecks, 181, 344
Schedule A form for itemized,
365, 371
standard, for income tax, 359
Deferred compensation, 456–457
Deferred payment plan, 179
Defined benefit retirement plans, 456
Demand function, 75, 77
Deming, William Edwards, 70, 73
Dependence, in statistics, 103, 105
Dependents, for income taxes, 353
Deposit slips, 116, 118
Depreciation on automobiles
historical and exponential,
252–258
linear, 245–251
Descending order, values in, 225, 233
Diameter of circles, 153
Diner’s Club credit cards, 194
Direct deposit, 116
Directional arrows, for trading
prices, 30
Discount stockbrokers, 40
Discover credit cards, 193
Disposable income, 520
Distance
braking, 268–270
finite, 150
formula for, 260–262
reaction, 268–269
skid, 275
total stopping, 270
Distributive property, 337–338, 340
Dividend income, 51–56
Division symbols, 12
Dollars, 264. See also Currency
Dollar value, reduction in, 252
Domains, 70, 75, 220–221, 339
Dorgan, Byron, 268, 272
Double-time pay, 297
Dow Jones Industrial Average
(DJIA), 29
Down payments, 175, 401, 413
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Index 555
Downticks, in stock prices, 32
Doyle, Sir Arthur Conan, 231, 236
Drag factor, on roads, 276–278
Drawer, of checks, 116
Driver impairment, 270
Driving data, 259–267. See also
Automobile ownership
E
Earl, Harley, 218, 222
Early withdrawal penalties, 438, 441
Earned Income Tax Credit, 366
Earnest money deposit, in home
purchase, 412
Earning power, 174
eBay, Inc., 3
Edison, Thomas, 4, 7, 29, 482, 486
Edmunds, 224
Edsel brand (Ford Motor Co.),
63, 108, 110
Einstein, Albert, 160, 328, 332
Electricity, 482. See also Utility
expenses
Electronic funds transfer (EFT),
116, 181
Electronic Funds Transfer Act,
194, 211
Electronic matrix, spreadsheet as, 496
Electronic odometer, 259
Electronic utility expenses, 489–495
Elimination method, in algebra, 390
Emergency road service insurance, 239
Employee benefits
cafeteria plans for, 347
flexible spending accounts in, 347
value of, 310–315
See also Insurance; Retirement,
planning for
Employee Retirement Income Security
Act (ERISA) of 1974, 457
Employer matching plans, for retire-
ment, 442–443
Employment, 288–325
assessment, 321–325
commissions, royalties, and
piecework, 303–309
employee benefits, 310–315
finding, 290–295
pay periods and hourly rates,
296–302
Social Security and Medicare,
316–320
Employment agencies, 291
Ending balance, 123, 125, 145
Endorsing checks, 117–118
Energy savings, 485
English Standard System, of measure-
ment, 259, 268
Envelope accounting system, 512
Equal Credit Opportunity Act, 182, 211
Equifax credit reporting agency, 212
Equilibrium price, 76
Equity, 425
Erdman, Paul, 114
Evasion, tax, 365–366
Eviction, 384
Exemptions, for income taxes, 353
Expense equation, 80
Expense function
automobile, 248–249
exponential depreciation equation
and, 255
graphing, 86–90
See also Breakeven analysis
Experion credit reporting agency, 212
Expiration, of leases, 384
Explanatory variables, 64, 66
Exponential base e, 153
Exponential decay function, 252
Exponential depreciation, 252–258
Exponential function, 424, 426
Exponential regression, 253
Exponents, 58, 189
Express checking accounts, 117
Extrapolation, 70
F
Face value, of corporate bonds, 54
Failure, product, 108
Fair, Isaac and Company, 175, 211
Fair Credit Billing Act, 194, 203, 211
Fair Credit Reporting Act, 182, 211
Fair Debt Collection Practices Act,
194, 211
Family health care, 310
Fast moving averages, 26
Feather, William, 9, 14, 480
Federal Deposit Insurance Corporation
(FDIC), 131, 166–167
Federal Insurance Contributions Act
(FICA), 316
Federal Reserve System, 115, 481
Fee paid, to employment agencies, 291
Fees, stock market, 40–44
FICO score, 175, 193, 211–212
Filing status, for income taxes, 329
Final-average formula, in retirement
plans, 457
Finance charges
on credit cards, 175, 195–199, 201
in installment plans, 175–176
in monthly loan payments, 187
risks of, 178
Finite distance, 150
Firm sale, 218
Fixed expenses
in automobile expense function,
248–249
in budgets, 509
in manufacturing, 80–85
Fixed rate mortgages, 401
Flat-benefit formula, in retirement
plans, 457
Flat taxes, 335
Flexible spending accounts
(FSAs), 347
Floor plans, 393–400
Flynn, Errol, 123, 127
Ford Motor Co., Inc., 26, 34, 61, 3, 110
Foreclosures, 401
Form 1040, for income taxes, 365–376
Form 1099, for income taxes, 348
Form 1040A, for income taxes, 353,
356–364
Form 1040 EZ, for income taxes,
353–356, 361–364
Formulas
compound interest, 143–149
continuous compounding, 153
distance, 260–262
exponential depreciation, 252
future value of periodic deposit
investment, 156
interest, 254
loan length, 189
loan payments, 183–184
outlier boundaries, 228
present value of periodic deposit
investment, 162
quadratic, 91
simple interest, 131
skid speed, 275–276
for slope, 71, 245
for straight line, 245
Form W-4-Employee’s Withholding
Allowance Certificate,
291, 344
Form W-2-Wage and Tax Statement,
344, 346–347, 352, 355
/ (forward slash), as division
symbol, 12
Fractional part of shares of
stock, 48
Fraction bar, 184
Franklin, Benjamin, 174, 178, 181,
185, 303, 307
Free checking accounts, 117, 167
Frequency budget plan, 512–513
Frequency distributions, 231–237
Friedman, Milton, 22, 28
Front-end ratio, 405–406
FSAs (flexible spending accounts), in
employee benefits, 347
Fuel economy measurements, 259
Fu Gang building (Guangxi Province,
China), 383, 432
Full retirement age, for Social
Security, 448
Furnished apartments, 384
Future value of investments,
156–160, 439–443. See also
Present value of
investments; retirement,
planning for
G
Gains, capital, 35–37
Garland, Judy, 401, 408
Gasoline prices, 217
General Motors Corp., 38
Google.com, 34, 58
Googol (10100), 58, 173
Government checks, 116
Graded vesting, in retirement
plans, 456
Graham Corporation, 48
Graphic organizers, 495
Graphing calculators
beginning of, 489
breakeven analysis, 91
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556 Index
expense function, 82, 86–90, 249
exponential regression, 253
linear regression, 190
line of best fit, 71–72
for mean, median, and quartile
values, 232
moving costs, 389–390
piecewise functions, 221
profit, 97–99
rent increases, 426
revenue function, 86–90
scatterplots, 65
straight line depreciation, 247
tax schedules, 335–336, 339
viewing window, 191
Graphs
applications, 236–237
box-and-whisker plot, 234–235
frequency distribution, 232–233
stem-and-leaf plot, 233
types of, 231
Greatest integer function, 466–467,
490–491
Greenspan, Alan, 131, 135
Gross capital gains, 35–37
Gross pay, 297, 344, 385–386
Grouping symbol, 184
Group term life insurance, 465
H
Head of Household tax filing status,
329, 374
Health care, as employee benefit, 310
High price, of stock, 9, 19
Hilbert, David, 150, 154
Histograms, 231
Historical data, 252
Historical depreciation, 252–258
Holds, on checking accounts, 116–117
Holiday time, paid, 310
Hollow Corporation, 48
Holmes, Oliver Wendell, 326
Home Depot, Inc., 55
Homeowners’ associations, 423
Homeowner’s insurance, 401
Home purchases
adjustable rate mortgages, 418–419
applications on, 420–421
closing costs, 411–414
monthly payments, 414–418
mortgage applications, 401–410
types of, 384
Hopkins, Robert, 344, 349
Horizontal intercept, 245
Hotel Montgomery (San Jose, CA), 383
Hourly rates of pay, 296–302
Hubbard, Frank, 2
Hybrid ARMs, 419
I
Impairment, of driver, 270
Impulse buying, 193
Income
in cash flow analysis, 509
in debt-to-income ratio, 406, 517
disposable, 520
dividend, 51–56
median, 284
taxable, 328, 440–442
Income taxes, 326–381
assessment, 377–381
capital gains and, 35
Form 1040A for, 352, 356–364
Form 1040 and Schedules A and B
for, 365–376
Form 1040 EZ for, 352–356,
361–364
Form W-4 for withholding, 291
income statements and, 344–351
applications of, 349–351
1099 form for, 348
take-home pay on, 344–346
W-2 form for, 346–347
retirement plan contributions
and, 438
schedules for
applications of, 340–343
graphing, 335–336
overview, 328–334
tax equation for, 337–339
tables and worksheets for, 328–334
Increasing term life insurance, 465
Independent living, 382–435
arrangements for, 384–392
applications on, 391–392
moving costs, 388–390
renting, 385–388
assessment, 430–435
floor plans, 393–400
home purchases
adjustable rate mortgages, 418–419
applications on, 420–421
closing costs, 411–414
monthly payments, 414–418
mortgage applications, 401–410
rentals, co-ops, and condomini-
ums, 422–429
Individual checking accounts, 117
Individual health care, 310
Individual Retirement Account
(IRA), 438
Infinite amounts, 150
Inflation, 284, 457
Installment plans, 175–176, 212
Insufficient funds, 117
Insurance
automobile, 238–244
as deductions from gross pay, 344
as employee benefit, 310
homeowner’s, 401
life, 131, 181–182, 465–471
Old Age, Survivors, and Disability
Insurance (OASDI), 447
unemployment, 310
Intercepts
of depreciation lines, 245, 248
of linear regression lines, 71
in tax equation, 338
Interest
as appreciation, 254
on checking accounts, 117
on corporate bonds, 54
prepaid, 412–413
rates of, 131–134, 166
on savings accounts, 131
See also Compound interest; Credit
cards; Retirement, planning for
Interest and Dividend Income form
(Schedule B), 365
Internal Revenue Service (IRS), 35,
328, 366
Internet, 489, 493
Interquartile range, 227–228, 234
Investment advice, 40
Irrational numbers, 153
Itemized Deductions form
(Schedule A), 365, 371
ITF (in trust for), 167
ITT, Inc., 60
J
JDS Uniphase Corp., 49
John Deere Corporation, 46–47
Johnson Controls, Inc., 47
Joint checking accounts, 117
Joint (married) tax filing status,
329, 375
JP Morgan Chase, Inc., 60
K
Kelley Blue Book, 224, 252
Kellogg Co., Inc., 33
Kennedy, John F., 316, 319
Keogh retirement plans, 439
Kilometers per liter (km/L), in fuel effi-
ciency measurements, 259, 271
Kilowatt-hours (kWh), 482
Knebel, Fletcher, 365, 375
L
Labor force, 472
Lagging indicators, 22
Landlords, 384
Landominiums, 423
Last trade price, of stock, 9
Late charges, on credit card state-
ment, 201
Latimer, A. A., 508, 518
Layaway plans, 178–179
Leading coefficient, 86–87
Leases, for rental housing, 384,
387–388
Least squares line, on scatterplots, 70
Lending institutions, 182
Lennon, John, 464, 469
Level term life insurance, 465
Lewis, Ron, 156, 159
Lewis Corporation, 56
Liabilities, 516–517
Liability, limited, 4
Liability insurance, 238
Life insurance
bank-offered, 131
loans covered by, 181
in retirement planning, 465–471
Life insurance companies, 182
Lifeline checking accounts, 117
Limited damage waiver, in car
rentals, 283
Limited liability, 4
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Index 557
Limit orders, on stocks, 40
Limits, in continuous compounding,
150
Linear depreciation, 245–251
Linear equations, tax equation as, 338
Linear regression
analysis of, 70–74
demand function created by, 77
on graphing calculator, 190
Line graphs, 231, 497, 501–503
Line of best fit, on scatterplots, 70
Living independently. See
Independent living
Loan length formula, 189
Loans, 181–192
banks for, 131
corporate bonds as, 54
finance charges on, 183–186
payments on, 183–186
regression analysis for, 187–192
sources of, 182
terminology for, 181–182
Loan sharks, 182
Logarithms, 189
Logos, corporate, 108
Losses, capital, 36–37
Low price, of stock, 9, 19
Luce, Henry R., 62
Lump-sum payment, in retirement
plans, 457
Lynch, Peter, 16, 20
M
Macy’s, Inc., 34
Maintenance fees, 117, 423
Manufacturers, 75–76
Marc, Lee, 290, 294
Market capitalization, 45–46
Market value, of houses, 401
Markup, 76–77
Married Filing Jointly tax filing
status, 329, 375
MasterCard credit cards, 173, 193
Matching plans, employer, 442–443
Mathematical models
in business, 103–107
for profitability, 81–83
Mathematics Teacher, 430
Matrix, check-off, 496–498
Mattel, Inc., 38
Maturity dates of corporate bonds, 54
Maximum profit, 98, 100, 103
Maximum taxable income, for
FICA, 316
Maynard, Joyce, 393, 399
McDonalds, Inc., 4
McLuhan, Marshall, 216
Mean (arithmetic average), 22–24,
195–196, 225, 232
Measures of central tendency, 224, 231
Mechanical odometer, 259
Median, 225–226, 228, 232–233, 284
Medicare
changes in, 316–320
as retirement benefit, 447, 452
taxes for, 316, 351
Merck Corporation, 55
Meter, for utilities, 482
Metric System, of measurements,
259, 271
Mexican pesos, 264
Microsoft, Inc., 32, 38, 61
Middle ordinate, in accident recon-
struction, 277–278
Miles per gallon (mpg), in fuel
efficiency measurements, 259
Millar, Richard, 430
Miller-Mariner, Jean, 430
Minimum payment, on credit card
statement, 201
Minimum wage, 297
Mode, 225, 228
Models, business. See Business models
Moderate correlation, 70
Modified boxplots, 235
Monarch Financial Holdings, 50
Moncur, Michael, 245, 250
Money flow, 32. See also Banking;
Currency
Money market accounts, 131–132
Monte Carlo method, in area mea-
surement, 397, 400
Monthly paychecks, 296
Monthly payment calculators, for
loans, 187
Monthly periodic rate, on credit card
statement, 201
Moonlighting, 289
Mortality tables, for life insurance,
464, 467–468
Mortgages
adjustable rate (ARMs), 418–419
applications for, 401–410
Moving costs, 388–390
Multiple-family homes, 384
Multiplication symbols, 12
Musaski, Miyamoto, 45, 49
N
NASDAQ (National Association of
Securities Dealers Automated
Quotation System), 9, 30
Natural gas, 482. See also Utility
expenses
Negative correlation, 64
Negative leading coefficient, 87
Negative money flow, 32
Negligence, 238
Negotiations, in sales, 218, 224
Net change, in stock prices, 10
Net pay, 344
Net worth, 516
Newark International Airport
Building 51 (Newark, NJ), 383
New balance, on credit card state-
ment, 201
New Coke brand (Coca-Cola Co.),
63, 108
New purchases, on credit card state-
ment, 201
New York Stock Exchange (NYSE), 9,
30, 58
NIKE, Inc., 4
Nikon Corp., 38
No-fault insurance, 239, 241
Nomograph, 283
Nonlinear functions, 86
Nonprofit organizations, 439
Non-recurring costs, of home
ownership, 411
Non-terminating repeating
decimals, 261
Nortel, Inc., 49
NOW (negotiable order of withdraw-
al) checking accounts, 117
Number of days in billing cycle, on
credit card statement, 201
O
Occupations, 289. See also
Employment
Odometer, 259
Old Age, Survivors, and Disability
Insurance (OASDI), 447
Omidyar, Pierre, 3
One-day stock bar chart, 18
Online job search sites, 293
Opening price, of stock, 19
Operations, order of, 13
Options to buy, 178
Orben, Robert, 193, 197
Order of operations, 13
Order of the matrix, 497
Origination fee, in home
purchase, 412
Origination points, in home pur-
chase, 412
Orman, Suze, 411, 420
Outliers, 225, 228, 235
Outstanding checks, 123
Outstanding shares of stock, 45, 47
Overdraft protection, 117
Overtime hours, pay rate for, 297
P
Paid holiday time, 310
Paid vacation time, 310
Palm, Inc., 47
Parabolas, quadratic equation
graphed as, 86–87. See also
Breakeven analysis; Expense
function
Parentheses, in formulas, 183, 186,
188, 270
Partial payments, on credit cards, 209
Partnerships, 4–6
Pawnshops, 182
Paychecks, 344
Payees, checks to, 116
Payment due date, on credit card
statement, 201
Payments/credits, on credit card
statement, 201
Pay periods, 296–302
Pay phones, 490
Payroll checks, 116
Pay stub, 344
Pearce, John Ed, 422, 428
Pemberton, John, 3
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558 Index
Penalties, for early withdrawal,
438, 441
Pension Benefit Guaranty
Corporation (PBGC), 457
Pension Protection Act of 2006, 457
Pensions, retirement, 457–464
Percents and ratios
back-end ratio, 406
in budgeting, 499–500
capital gains as, 37
debt-to-income ratio, 406, 517
depreciation rate as, 254
financial responsibility indicated
by, 5
front-end ratio, 405–406
in income tax schedules, 336–337
proportions as, 394
for slope, 245
yield of stock expressed as,
53–54
Perimeter, in area measurement, 396
Periodic deposit investment, future
value of, 156
Periodic deposit investment, present
value of, 161, 164
Permanent life insurance, 465
Personal identification number
(PIN), 117
Personal injury protection (PIP)
insurance, 239
Personal liability, 4
Pesos, Mexican, 264
Peter, Laurence J., 80, 84
Piecewise functions
classified ads as, 219–221
distributive property for, 337
greatest integer function for, 490
income tax calculations, 339–340
payment calculation as, 299
Social Security tax calculation
as, 318
Piecework, payment by, 303–309
Pie charts, 497, 499–503
π (Pi), 153
POD (payable on death), 167
Points, in home purchase, 412
Portfolio, stock, 35, 41
Positive correlation, 64, 66
Positive leading coefficient, 86
Positive money flow, 32
Preferred stock, 51
Premiums, life insurance, 464, 466
Prepaid interest, in home purchase,
412–413
Prepayment penalties, 181
Prepayment privilege, 181
Present value of investments,
161–165, 439–443. See also
Future value of investments;
Retirement, planning for
Pre-tax dollars, 438
Previous balance, on credit card
statement, 201
Price
breakeven analysis to set, 92
equilibrium, 76
expense function in terms of, 86
of gasoline, 217
retail, 75–77
in transitive property of depen-
dence, 103
wholesale, 76
See also Stock market
Principal
compound interest on, 137
definition, 145
loan amount as, 181, 183
payment of, 414
in savings accounts, 131
subtracting, 191
Probability, in Monte Carlo
method, 397
Procter and Gamble Co., Inc., 33
Production quantity, 75–79
Products, 63, 108
Profitability, 80–83
Profit equation, 97–102
Progressive tax system, 335. See also
Income taxes
Promissory notes, 181. See also
Loans
Property damage (PD) liability
insurance, 238, 241
Property taxes, 328, 401, 403, 423
Proportional taxes, 335
Proportions, 394
Pro-rating non-monthly expenses, 511
Protractor, 500
Public corporations, 4. See also Stock
market
Q
Quadratic equations, 86, 91
Quadratic formula, 91
Quadratic regression equation, 190
QualComm, Inc., 46
Qualified joint and survivor annuity,
in retirement plans, 457
Qualifying Widow(er) tax filing
status, 329
Quantity, production, 75–79
Quarterly compounding, 137
Quartiles, 227–228, 232, 234
R
Radius, in car accidents, 277–278
Range, 70, 226
Ratios. See Percents and ratios
Reaction distance, 268–269
Reaction time, 268–269
Real body, in candlestick charts, 19
Real estate taxes, 401
Reality Check feature
automobile ownership, 282–283
banking services, 166–167
budgeting, 520–522
business models, 108–109
consumer credit laws, 211–212
employment, 321–322
income taxes, 377–378
independent living, 430–431
retirement planning, 473–474
stock market, 57–58
Really feature
brand names, 63, 110
corporation names, 3, 58
counterfeiting, 115, 168
credit card use, 173, 213
currency, 481, 522
gasoline prices, 217, 284
moving buildings, 383, 432
occupations, 289, 323
retirement of baby boomer
generation, 437, 475
Tax Freedom Day, 327, 379
Real numbers, 57, 108, 166, 211,
282, 321, 377, 430, 472, 520
Reconciliation, of bank statements,
123–130
Recurring costs, of home
ownership, 411
Reducing debt, 517
Regression
exponential, 253
for hybrid car sales, 282
linear, 70–74, 77
in loan calculations, 187–192
for square footage versus rent, 387
Tax Freedom Day prediction
by, 379
Regressive tax system, 336. See also
Income taxes
Regular hours, pay rate for, 297
Rental car insurance, 239
Rental housing
affording, 385–386
finding, 386–387
leases on, 387–388
purchasing versus, 422–429
types of, 384–385
Rent-to-own plans, 178, 180
Response variables, 64, 66
Resumes, 291
Retail price, 75–77
Retirement, planning for, 436–479
assessment, 472–479
as employee benefit, 310
future value of investments in, 157
life insurance for, 465–471
pensions for, 457–464
savings income for, 438–446
Social Security benefits for,
447–456
tax-deferred contributions for, 347
Revenue equation, 80
Revenue function, 86–90. See also
Breakeven analysis
Reverse stock split, 45, 47
Revolving charge account, 193
Risk-reward balance, 2, 114
Road conditions, braking distance
and, 270
Robbins and Myers, Inc., 49
Rogers, Will, 116, 120
Roosevelt, Franklin D., 316, 335, 340,
447, 453
Rosen, Mark, 206, 209
Ross, George, 35, 38
Roth Individual Retirement Account
(IRA), 438–439. See also
Retirement, planning for
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Index 559
Rounding numbers
to nearest cent, 175, 178, 184,
213–214
to nearest whole number, 362
to nearest dollar, 375
spreadsheet settings for, 13
Rows, in budget matrix, 496
Royalties, payment by, 303–309
Rule of 72, 160, 167
S
Sacrifice sale, 218
Safe deposit boxes, 131
Safety data, automobile, 268–273
Salaries. See Employment
Sales taxes, 219, 328, 335
Savings
bank accounts for, 114, 131–136
in cash flow analysis, 509
in retirement planning, 438–446
Savitch, Jessica, 352, 361
Scale drawings, floor plans as, 394
Scatterplots
of exponential decay, 252
of hybrid car sales, 282
linear regression for, 70–74
loan length versus balance, 190
for rate of failures, 108
square footage versus rent, 387
trends shown on, 64–69, 231
Schedules A and B, for income taxes,
365–376
Seasons, utility bill variation by, 485
Sectors, of circles, 499
Security deposit, for leases, 387
Self-employment, 439
Selling automobiles, 224–230
Semiannual compounding, 137
Semimonthly paychecks, 296–297
Semi-retired people, 438
Shadow skid marks, in car
accidents, 274
Shareholders
defined, 4
dividends for, 51–56
stock splits and, 45
See also Stock market
Shares of stock, 4, 45, 47–48. See also
Stock market
Shubert Theater (Minneapolis,
MN), 383
Shulman, Morton, 143, 148
Simple interest, 131
Simple moving averages (SMA),
22–28
Singer, June, 259, 265
Single checking accounts, 117
Single deposit investment, future
value of, 156
Single deposit investment, present
value of, 161–163
Single-family homes, 384
Single life annuity, in retirement
plans, 457
Single tax filing status, 329, 340
Skewed data, 225
Skid distance, 275
Skid marks, in car accidents, 274
Skid speed formula, 275–276
Skills and Strategies feature
auto insurance costs, 239–240
average daily balance, 206–208
breakeven analysis, 92–94
budget matrices, charts, and
graphs, 498–503
buying and selling cars, 219–221
capital gains and losses, 36–37
car price negotiations, 225–226
cash flow analysis, 509–517
commissions, royalties, and piece-
work pay, 304–306
compound interest, 138–140,
144–145
continuous compounding, 151–153
correlation coefficient, 72
credit card statements, 202–203
depositing money, 118
dividends, 52–53
driving data, 260–264
electronic utility costs, 490–493
employee benefits, 311–313
employment search, 291–293
expense and revenue functions,
87–89
exponential depreciation, 253–256
finance charges on credit cards,
195–196
floor plans, 394–397
frequency distribution, 232–235
future value of investments,
157–158
home ownership costs, 402–407
homeowner’s insurance, 401
home purchase costs, 413–419
installment plans, 175–176
interest rates, 132–134
life insurance, 465–468
line of best fit, 71–72
loan calculations, 188–190
loan payments, 183–184
mathematical modeling, 104–105
Medicare, 317–318
pay periods and hourly rates,
297–299
pay stubs, Form W-2, and Form
1099, 345–348
pension benefits, 458–460
present and future values of retire-
ment accounts, 439–443
present value of investments,
162–164
profit, 99–100
profitability, 81–83
ratios and percents, 5
reaction and braking distances,
269–271
reconciling bank statements,
124–126
rentals, co-ops, and condomini-
ums, 423–427
renting and purchasing housing,
385–390
scatterplots, 65–67
simple moving average, 23
skid and yaw formulas, 275–277
Social Security, 317–318, 448–452
stock bar chart, 17
stockbroker fees, 41
stock data, 10
stock splits, 46
stock ticker information, 30
straight line depreciation, 246–248
supply and demand, 76–77
tax form 1040 and Schedules A
and B, 366–374
tax forms 1040EZ and 1040A,
353–360
tax schedules, 336
tax tables, schedules, and
worksheets, 329–331
utility expenses and measure-
ment, 483–485
/ (Slash), as division symbol, 12
Slaughter, Louise, 199, 204
Sliding paid vacation, 314
Slope
of depreciation lines, 245–247
of linear regression line, 71
Social Security tax rate, 318
in tax equation, 338
Slow moving averages, 26
Smoothing stock data, 22–28
Social Security Act of 1935, 447
Social Security benefits
applications on, 453–455
baby boomer generation and, 437
maximum taxable income for,
447–448
paycheck deductions for, 316–320
statement of, 449–450
taxable portion of, 451–452
Social Security number, 316
Sole owner checking accounts, 117
Sole proprietorship, 4
Sony Corporation of America, 63
Southern Copper, Inc., 60
Speedometer, 259, 271
Spending, consumer, 520
Split functions, 219–221
Splits, stock, 45–50
Spreadsheets
amortization table on, 415–417
for ARMs, 419
for breakeven analysis, 94
for cash flow, 509–515
on consumer credit, 179
as electronic matrix, 496
future value of investments
on, 160
to reconcile bank statements, 126
rent versus buy decision, 424–425
simple moving averages on, 25–26
for stock data, 12–13
for tax computation, 342
yields on, 55
Square footage, of apartments, 387
Square roots, in skid speed
formula, 275
Standard deduction, for income
taxes, 359
Starting balance, on bank state-
ments, 123, 140
Statement, credit card, 200–205
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560 Index
Statement reconciliation, bank,
123–130
Statement savings account, 132
Statements of income, 344–351
applications of, 349–351
1099 form for, 348
take-home pay on, 344–346
W-2 form for, 346–347
See also Income taxes
Statistical Abstract of the United
States, 289
Statistics
on automobiles, 224–230
for business decision making, 103
in business models, 62
loan length, 190
overload of, 229
to smoothing stock data, 22
Stem-and-leaf plots, 233, 244
Stock bar charts, 16, 60
Stockbrokers, 40
Stock market, 1–61
assessment on, 57–61
business organization, 4–8
data from
daily, 9–15
display of, 16–21
simple moving averages of, 22–28
ticker transmittal of, 29–34
dividend income, 51–56
fees of, 40–44
stock splits, 45–50
transactions of, 35–39
Stock ownership plans, 310
Stock symbols, 30
Straight line depreciation, 245–248
Strong correlation, 70
Subtraction and addition method, for
simple moving averages, 24–25
Sum function, on spreadsheets, 25
Supply and demand, 75–79
Suspending stock trading, 18
Symmetry, axis of, 87
T
Take-home pay, 344–346
Taxable income, 440–442
Tax brackets, 335
Tax credits, 366, 373
Tax-deferred contributions, 347
Tax-deferred retirement accounts, 438
Tax equation, 337–339
Taxes
FICA, 316
Medicare, 447
sales, 219, 328, 335
transfer, 412
See also Income taxes
Tax-exempt Roth IRAs, 439
Tax Foundation, 327
Tax Freedom Day, 327, 379
Telegraph, 29
Tenants, 384. See also Rental housing
Term life insurance, 464, 467–468
Terms and conditions, on credit card
statement, 206
Text messaging, 492
Thinking time (reaction time), 268
Ticker symbols, 30
Ticker tape machine, 29
Ticker transmittal of stock data, 29–34
Time-and-a-half overtime, pay rate
for, 297
Tire pressure, braking distance
and, 270
Title search, in home purchase, 412
Total stopping distance, 270
Total value of trades, 31
Trades, on stock market, 9–10, 18, 31
Trading price, 30
Trading volume, 30–31
Traditional Individual Retirement
Account (IRA), 438
Traditional stock split, 45
Transactions, on credit card state-
ment, 201
Transactions, stock market, 35–39
Transfer tax, in home purchase, 412
Transitive property of dependence, 103
Transmittal of stock data, 29–34
TransUnion credit reporting
agency, 212
Trends, scatterplots for, 64–69
Trip odometer, 259
Trust accounts, 167
Truth-in-Lending Act, 181, 194, 211
U
Ulbricht, Walter, 495, 504
Unemployment insurance, 310, 312
Unfurnished apartments, 384
Uninsured/underinsured motorist pro-
tection (UMP) insurance, 238
United States Savings Bonds, 57
United States Secret Service, 115, 168
Univariate data, 64
Universal life insurance, 465–467
Universal Stock Ticker, 29
Upticks, in stock prices, 32
U.S. Bureau of Labor Statistics, 321, 472
U.S. Census Bureau, 385, 430
U.S. Department of Labor, 297, 322
U.S. dollars, 264
U.S. Tax Code, 347
Utility expenses, 482–488
V
Vacation time, paid, 310, 314
Variable expenses, 80–85, 248–249,
509
Variable life insurance, 465
Variables, 64, 66, 105
Versant Corporation, 49
Vertex, of parabolas, 87
Vertical intercept, 245
Vesting, in retirement plans, 456
VHS tape format, 63
Visa credit cards, 173, 193
Volume
measurement of, 398, 482
of stock shares traded, 10, 16–17,
30–31
Voluntary compliance, with tax
laws, 365
W
Wage assignment, 181
Wage garnishment, 182
Walker, David, 437
Walt Disney Co., 33, 55
Water consumption, budgeting
for, 482
Watt-hours, 482
Watts, 482
Weak correlation, 70
Weekly paychecks, 296
Wells, H. G., 224, 229
W-4 form-Employee’s Withholding
Allowance Certificate,
291, 344
Whole life insurance, 465–466
Wholesale price, 76
Widgets, 75–76
Withdrawal penalties, early, 438, 441
Withdrawals, 119, 125
Withholding Allowance Certificate
(Form W-4), 291
Withholding taxes, 344
Worker’s compensation, 311
Workforce. See Employment
W-2 form-Wage and Tax Statement,
344, 346–347, 352, 355
X
Xerox Corp., 3–4, 35, 38
XTO Energy, Inc., 50
Y
Yahoo! Inc., 34
Yaw marks, in car accidents, 274,
277–278
Year-long expense budget plan, 512,
514–515
Yield, of stock, 51, 53–54
Z
Zero net difference, in expense and
revenue, 91
Zyco Corp., 59
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