Financial Math Fall Final Unit 3 Calculations Review

Front

What is the total annual income calculation for a monthly salary of $333, additional income of $10 for guarding pigs, and $8 for babysitting, with a daily expense of $3 for sleeping?

Back

Total annual income = (Monthly salary + Additional income) * 12 - (Daily expense * 365) = ($333 + $10 + $8) * 12 - ($3 * 365) = $3,117.

Front

How do you calculate gross annual salary including commission for a base salary of $2,500 and 8% commission on $1,050 in sales?

Back

Gross annual salary = (Base salary + (Commission rate * Sales)) * 12 = ($2,500 + (0.08 * $1,050)) * 12 = $31,008.

Front

What is the gross pay calculation for working 62 hours at $7 per hour with overtime pay for hours over 40?

Back

Gross pay = (Regular hours * Hourly rate) + (Overtime hours * Overtime rate) = (40 * $7) + (22 * $10.50) = $511.

Front

How do you calculate tax savings from health insurance premiums deducted pre-tax for a monthly salary of $5,214 and a tax rate of 24%?

Back

Tax savings = Premiums * Tax rate = $425.45 * 0.24 = $102.11.

Front

What is the FICA withholding calculation for a biweekly salary of $987?

Back

FICA withholding = Salary * FICA rate (7.65%) = $987 * 0.0765 = $75.50.

Front

Define gross pay.

Back

Gross pay is the total amount earned by an employee before any deductions such as taxes, insurance, and retirement contributions.

Front

What is the difference between gross pay and net pay?

Back

Gross pay is the total earnings before deductions, while net pay is the amount received after all deductions are taken out.

Front

Explain the concept of commission in sales.

Back

Commission is a payment to an employee based on the sales they generate, typically calculated as a percentage of the sales amount.

Front

What is the formula for calculating annual salary from monthly salary?

Back

Annual salary = Monthly salary * 12.

Front

Define overtime pay.

Back

Overtime pay is the additional compensation paid to employees who work more than the standard hours, usually at a higher rate.