#2.24 - 1st Semester Exam Review 2024

Front

What is compound interest?

Back

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Front

How do you calculate the total amount in an account with compound interest?

Back

Total Amount = Principal × (1 + r/n)^(nt), where r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Front

What is the formula to calculate the amount owed to an employment agency?

Back

Amount Owed = (Monthly Pay × Number of Months) × Agency Fee Percentage.

Front

What is a deferred payment plan?

Back

A deferred payment plan allows a buyer to purchase an item and pay for it over time, often with a minimum monthly payment.

Front

How do you calculate sales tax on a purchase?

Back

Sales Tax = Purchase Price × Sales Tax Rate.

Front

What is the formula for calculating gross pay with overtime?

Back

Gross Pay = (Regular Hours × Hourly Rate) + (Overtime Hours × Hourly Rate × 1.5).

Front

What does 'time and a half' mean in terms of pay?

Back

'Time and a half' means that employees earn 1.5 times their regular hourly wage for hours worked beyond their standard work hours.

Front

How do you determine the final payment needed to avoid finance charges?

Back

Final Payment = Total Balance - (Minimum Monthly Payment × Number of Months).

Front

What is the significance of understanding interest rates in finance?

Back

Understanding interest rates helps individuals make informed decisions about loans, savings, and investments.

Front

What is the difference between simple interest and compound interest?

Back

Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus any accumulated interest.