Consumer Math Review

Front

What is gratuity?

Back

Gratuity, often referred to as a tip, is a sum of money given to service workers for their service, typically calculated as a percentage of the total bill.

Front

How do you calculate a percentage of a total amount?

Back

To calculate a percentage, multiply the total amount by the percentage (in decimal form). For example, to find 20% of $32.85, multiply $32.85 by 0.20.

Front

What is simple interest?

Back

Simple interest is calculated on the principal amount only, not on the interest accrued. The formula is: Interest = Principal x Rate x Time.

Front

How do you calculate the interest on a loan?

Back

To calculate interest, use the formula: Interest = Principal x Rate x Time. For example, for a $2,000 loan at 12% for 6 months, it would be $2,000 x 0.12 x 0.5.

Front

What is a discount?

Back

A discount is a reduction in the price of a product or service, often expressed as a percentage of the original price.

Front

How do you calculate the final price after a discount?

Back

To find the final price after a discount, subtract the discount amount from the original price. For example, if a vase costs $266.70 and has a 10% discount, the discount is $26.67, making the final price $240.03.

Front

What is the formula to find the discount amount?

Back

Discount Amount = Original Price x Discount Rate (in decimal form). For example, for a 30% discount on $31.50, the discount amount is $31.50 x 0.30 = $9.45.

Front

How do you compare prices to find the best buy?

Back

To find the best buy, compare the final prices of the same item across different stores, considering any discounts or additional costs.

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What is the importance of understanding consumer math?

Back

Understanding consumer math helps individuals make informed financial decisions, such as budgeting, saving, and spending wisely.

Front

What is the total cost of a meal including gratuity?

Back

To find the total cost including gratuity, add the gratuity amount to the original meal cost. For example, if a meal costs $32.85 and the gratuity is $6.57, the total cost is $39.42.