Financial Math Review

Front

What is the decimal equivalent of 4.3%?

Back

.043

Front

Does compound interest grow faster than simple interest?

Back

True

Front

What is interest?

Back

Interest is the cost of borrowing money or the return on investment for savings.

Front

What is an example of a variable expense?

Back

Gas is considered a variable expense.

Front

What does the 'P' in the formula I = PRT stand for?

Back

Principal

Front

How do you convert a percentage to a decimal?

Back

Divide the percentage by 100.

Front

What is the formula for calculating simple interest?

Back

I = PRT, where I is interest, P is principal, R is rate, and T is time.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant, while variable expenses can change.

Front

What is compound interest?

Back

Interest calculated on the initial principal and also on the accumulated interest from previous periods.

Front

Why is understanding interest important in financial math?

Back

It helps in making informed decisions about loans, savings, and investments.