Chapter 6 Review

Front

What is simple interest?

Back

Simple interest is calculated using the formula: Interest = Principal × Rate × Time. It is a way to calculate the interest earned or paid on a principal amount over a specific period.

Front

How do you find the time when given interest, principal, and rate?

Back

To find the time, rearrange the simple interest formula: Time = Interest / (Principal × Rate).

Front

If an item costs $20 and has a 15% markup, how do you calculate the selling price?

Back

Selling Price = Cost + (Cost × Markup Rate). For a $20 item with a 15% markup: Selling Price = $20 + ($20 × 0.15) = $23.

Front

What is percent of change?

Back

Percent of change is calculated as: Percent of Change = (New Amount - Original Amount) / Original Amount × 100%. It shows how much a quantity has increased or decreased.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 48% as a decimal is 48 ÷ 100 = 0.48.

Front

What is the formula for calculating the new amount after a percentage increase?

Back

New Amount = Original Amount + (Original Amount × Percentage Increase).

Front

How do you order fractions, decimals, and percentages from least to greatest?

Back

Convert all values to the same format (either fractions, decimals, or percentages) and then compare them.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal × Rate × Time.

Front

If you have an interest of $72, a principal of $600, and a rate of 6%, how do you find the time?

Back

Using the formula: Time = Interest / (Principal × Rate), Time = $72 / ($600 × 0.06) = 2 years.

Front

What is the selling price of an item that costs $20 with a 15% markup?

Back

Selling Price = $20 + ($20 × 0.15) = $23.