Financial Literacy Practice

Front

What is the definition of 'net worth'?

Back

Net worth is the value of one's assets minus one's liabilities.

Front

If a person earns $5,000 a month and spends $200 on miscellaneous expenses, what percentage of their income is spent on miscellaneous expenses?

Back

4%.

Front

What is the formula to calculate sales tax?

Back

Sales Tax = Purchase Price x Sales Tax Rate.

Tags

CCSS.7.RP.A.3

Front

If Mrs. Wilcox paid $28.00 for beakers and $10.00 for clamps, what is the total amount spent before tax?

Back

$38.00.

Tags

CCSS.7.EE.B.3

Front

How do you calculate the required increase in income when moving to a city with a higher cost of living?

Back

Required Increase = New Required Income - Original Income.

Tags

CCSS.6.RP.A.3B

Front

What is the Medicare tax rate mentioned in the questions?

Back

3%.

Front

If Minda's monthly pay is $3,200, how much does she pay for Medicare?

Back

$96.

Tags

CCSS.6.RP.A.3B

Front

What is the significance of understanding sales tax in financial literacy?

Back

It helps individuals calculate the total cost of purchases and budget accordingly.

Tags

CCSS.6.RP.A.3B

Front

How can one determine their monthly budget for miscellaneous expenses?

Back

By allocating a specific percentage of their total income to miscellaneous expenses.

Tags

CCSS.6.RP.A.3C

Front

What does a higher cost of living imply for a family's budget?

Back

It implies that the family will need a higher income to maintain their standard of living.