1st Semester Final Review -Financial Math

Front

What is the formula to calculate hourly pay rate?

Back

Hourly Pay Rate = Gross Pay / Total Hours Worked.

Front

If Jose worked 26 hours and earned $331.50, what is his hourly pay rate?

Back

$12.75

Front

What is the percentage used to calculate Social Security deductions?

Back

6.2%.

Front

What is the formula for compound interest?

Back

A = P(1 + r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Front

Virginia invested $4,500 at 5% interest compounded quarterly. What is her balance after 6 years?

Back

$6,063.08.

Front

How do you calculate the finance charge on a cash advance?

Back

Finance Charge = Principal Amount x Daily Interest Rate x Number of Days.

Front

What is the daily finance charge rate if it is 0.07%?

Back

0.0007 as a decimal.

Front

Wendy borrowed $400 for 10 days with a daily interest rate of 0.0625%. What is the finance charge?

Back

Total Finance Charge = $20 (fee) + ($400 x 0.000625 x 10) = $22.50.

Front

What is the total finance charge for a $12,000 cash advance for 35 days at a daily rate of 0.07%?

Back

$12000(0.0007)(35).

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal and also on the accumulated interest.