1st Semester Final Review -Financial Math

Front

What is a finance charge?

Back

A finance charge is the cost of borrowing money, typically expressed as a percentage of the amount borrowed, which includes interest and any fees.

Front

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

Back

Total finance charge = (Amount borrowed) x (Daily interest rate) x (Number of days) + any fees.

Front

What is the formula to calculate the Social Security deduction from gross pay?

Back

Social Security deduction = Gross pay x 0.062 (6.2%).

Front

How do you find the percent of commission earned?

Back

Percent of commission = (Commission earned / Total sales) x 100.

Front

What is the Medicare deduction rate?

Back

The Medicare deduction rate is 1.45% of gross pay.

Front

What is a cash advance on a credit card?

Back

A cash advance is a service provided by credit card issuers that allows cardholders to withdraw cash, often with high fees and interest rates.

Front

What is the daily periodic interest rate?

Back

The daily periodic interest rate is the interest charged on a loan or credit balance calculated on a daily basis.

Front

How do you calculate the total amount to be repaid on a cash advance?

Back

Total amount to be repaid = Amount borrowed + Total finance charge.

Front

What is the significance of understanding finance charges?

Back

Understanding finance charges helps consumers make informed decisions about borrowing and managing credit.

Front

What is the difference between gross pay and net pay?

Back

Gross pay is the total earnings before deductions, while net pay is the amount received after all deductions.