Mid-Term for Math Data and Financial Literacy

Front

What is a Certificate of Deposit (CD)?

Back

A Certificate of Deposit (CD) is a savings account with a fixed interest rate and fixed date of withdrawal, known as the maturity date.

Front

How is interest calculated on a CD?

Back

Interest on a CD is typically calculated using the formula: A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the number of years the money is invested.

Front

What is the formula for calculating total pay for hourly workers?

Back

Total Pay = (Regular Hours x Regular Rate) + (Overtime Hours x Overtime Rate). Overtime is typically paid at 1.5 times the regular rate.

Front

What is the Fair Labor Standards Act (FLSA)?

Back

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and youth employment in the United States.

Front

What is the overtime pay rate according to the FLSA?

Back

Overtime is paid at one and one-half times the regular rate of pay for hours worked over 40 in a workweek.

Front

If an employee works 45 hours in a week and earns $15 per hour, how much will they earn in total?

Back

Total Pay = (40 hours x $15) + (5 hours x $22.50) = $600 + $112.50 = $712.50.

Front

What is time-and-a-half pay?

Back

Time-and-a-half pay is a rate of pay that is 1.5 times the regular hourly wage, typically used for overtime hours.

Front

If an employee earns $10 per hour and works 50 hours in a week, what is their total pay?

Back

Total Pay = (40 hours x $10) + (10 hours x $15) = $400 + $150 = $550.

Front

What is the difference between regular pay and overtime pay?

Back

Regular pay is the standard hourly wage for hours worked up to 40 in a week, while overtime pay is the higher rate paid for hours worked beyond 40 in a week.

Front

How do you calculate the future value of an investment with compound interest?

Back

Future Value = Present Value x (1 + interest rate/n)^(nt), where n is the number of compounding periods per year.