Personal Financial Literacy Concepts Review

What is the method to calculate sales tax on an item?

• Divide the price by the tax rate

• Add the tax rate to the price

• Multiply the price by the tax rate in decimal form

• Subtract the tax rate from the price

How can you simplify a percent proportion before solving?

• By multiplying both sides by 100

• By dividing both the numerator and denominator by the same number

• By adding 100 to both sides

• By subtracting the percentage from 100

Which store offers a better discount for a computer priced at $950?

• Both offer the same discount

• Neither store offers a discount

• Store B with 25% off

• Store A with 20% off

What is the annual income required to meet a monthly budget of $4000?

• $48,000

• $12,000

• $36,000

• $24,000

What percentage of the monthly budget is spent on transportation?

• 5%

• 25%

• 10%

• 15%

How do you calculate net worth?

• Assets divided by liabilities

• Assets minus liabilities

• Assets plus liabilities

• Liabilities minus assets

What is the formula for simple interest?

• A = P(1 + r)^t

• I = prt/100

• A = P(1 + rt)

• I = PRT

What does the 'P' stand for in the simple interest formula?

• Payment

• Principal amount

• Percentage

• Profit

How much interest will Jana pay on her loan?

• $4,000

• $1,250

• $3,125

• $2,500

What is the total amount in Mr. Sanchez's account after 2 years with 10% compound interest?

• $660

• $500

• $550

• $605