IB Maths AI 1.7 Definitions
This page contains our IB Maths AI definitions for 1.7. By learning each one of these definitions, you will fully cover the content for IB Maths AI 'Use of technology'.
amortization
The process of repaying a loan through regular payments over a fixed period of time, reducing the outstanding balance to by the end.
annuity
A sequence of equal payments made at regular intervals over a fixed period of time, with payments made at the end of each period in this topic.
compounded
Describes interest that is repeatedly added to the balance at regular intervals, so future interest is calculated on both the original amount and previously added interest.
interest
Money paid or earned for borrowing or investing; in sequence models it represents the change in an amount over time according to a fixed rule.
polynomial
An algebraic expression made from constants and variables using addition, subtraction, and multiplication, with variables raised to non-negative integer powers.
principal
The original amount borrowed (or the remaining loan balance) before interest is added; part of each payment reduces this amount.
systems
Sets of equations considered together, where a solution must satisfy every equation in the set at the same time.
technology
Digital tools such as a graphic display calculator (GDC) or a spreadsheet used to carry out calculations, solve equations, and model financial situations efficiently.
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