Q2 - qz#6***** - PB- 12-6-24

Front

What is simple interest?

Back

Simple interest is calculated using the formula: I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.

Front

How do you calculate simple interest?

Back

To calculate simple interest, use the formula: I = PRT. Multiply the principal (P) by the rate (R) and the time (T) to find the interest earned.

Front

What is the formula for calculating the final cost including sales tax?

Back

Final Cost = Price + (Price x Sales Tax Rate). This calculates the total amount paid after tax.

Front

If you deposit $575 for 3 months at 2.88% simple interest, how much interest do you earn?

Back

$4.14

Front

What is the principal in a simple interest calculation?

Back

The principal is the initial amount of money deposited or borrowed before interest.

Front

How do you find the total amount after applying simple interest?

Back

Total Amount = Principal + Interest. Add the interest earned to the principal to find the total.

Front

What is the sales tax on an item priced at $850 with an 11% tax rate?

Back

Sales Tax = Price x Sales Tax Rate = $850 x 0.11 = $93.50.

Front

How much simple interest is earned on a principal of $2,000 at 8% for 5 years?

Back

$800

Front

What is the Medicare tax rate?

Back

The Medicare tax rate is 1.45% of gross income.

Front

How do you calculate the Medicare tax due on a gross income of $87,425?

Back

Medicare Tax = Gross Income x Medicare Tax Rate = $87,425 x 0.0145 = $1,268.