MM Final #1- Financial Math

Front

What is 25% as a decimal?

Back

0.25

Front

Jacob borrows $500 from Abraham and agrees to have the loan compounded annually for 5 years with an interest rate of 2.5%. How much will the total amount be that Jacob owes?

Back

$565.70

Front

A caregiver is paid $2000 biweekly. Assuming 40 hours per week and 50 weeks per year, how much do they make per year?

Back

$50,000

Front

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

Back

$120

Front

What is 120% as a decimal?

Back

1.2

Front

Define simple interest.

Back

Simple interest is calculated using the formula: I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.

Front

What is the formula for compound interest?

Back

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate, n is the number of times that interest is compounded per year, and t is the number of years.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.

Front

What is the total amount owed after 5 years on a loan of $500 at an annual interest rate of 2.5% compounded annually?

Back

$565.70

Front

If a person earns $2000 biweekly, what is their annual salary?

Back

$50,000