Review Financial Algebra MidTerm Dec2024

Front

What is the difference between simple interest and compound interest?

Back

With compound interest, you earn interest on both the principal and the interest that you have earned.

Front

What type of insurance covers medical attention for individuals hurt in an accident?

Back

PIP (Personal Injury Protection) covers medical expenses for individuals injured in an accident.

Front

What is a bounced check?

Back

A check that is not honored by a bank and is returned to the payee's bank due to nonsufficient funds (NSF) in the account.

Front

Why is it important to manage money wisely?

Back

To maintain a high credit rating, which affects your ability to borrow money and the interest rates you receive.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

What does APR stand for in finance?

Back

APR stands for Annual Percentage Rate, which is the annual rate charged for borrowing or earned through an investment.

Front

What is the purpose of a credit rating?

Back

A credit rating assesses the creditworthiness of a borrower, influencing loan approval and interest rates.

Front

What is the difference between a money order and a check?

Back

A money order is a prepaid payment method, while a check is a written order to a bank to pay a specific amount from the account holder's funds.

Front

What is the significance of having a high credit score?

Back

A high credit score can lead to lower interest rates on loans and better terms for credit.

Front

What is the role of Personal Injury Protection (PIP) in auto insurance?

Back

PIP covers medical expenses and, in some cases, lost wages for you and your passengers after an accident.