Math 1 · Unit 8 · Lesson 5 · part 1 of 5

The Words We Use

The vocabulary for this lesson, in one place.

Words we use

WordPlain EnglishWhat you do
DepreciationLosing value over time.Same form as compound interest, with a factor below 1.
Decay factor1 minus r: the number you multiply by each time.Losing 13% gives 0.87.
Decay rater, the percent lost each time. How far the factor is below 1.A factor of 0.85 is a rate of 15%, not 85%.
Doubling timeHow long it takes an amount to double.Find it with a table. 72 divided by the rate is a quick estimate.
Principal, balanceThe starting amount and the amount now. On a loan, what you borrowed and what you owe.Interest on a debt grows the same way savings do.
Growth factor1 plus r, from Lesson 2.Above 1 grows, below 1 shrinks, exactly 1 does nothing.

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