Financial Algebra Quarter 2 Final Exam Review part 2

Front

What is the formula to calculate the amount allocated for a specific expense based on monthly income?

Back

Amount allocated = Monthly Income x Percentage of Expense

Front

If your monthly income is $3200 and you spend 20% on Food, how much do you spend on Food?

Back

$640

Front

What is the definition of overtime pay?

Back

Overtime pay is the pay rate for hours worked beyond the standard workweek, typically calculated at 1.5 times the regular hourly rate.

Front

If Liam works 50 hours a week at $12.50 per hour, how do you calculate his total pay including overtime?

Back

Regular pay for 40 hours = $12.50 x 40 = $500; Overtime pay for 10 hours = $12.50 x 1.5 x 10 = $187.50; Total pay = $500 + $187.50 = $687.50.

Front

What is a rental agreement?

Back

A rental agreement is a contract between a tenant and a landlord outlining the terms of renting a property.

Front

What percentage of your income is typically allocated for savings?

Back

A common recommendation is to save at least 10% of your income.

Front

What is the Social Security tax rate for employees?

Back

The Social Security tax rate is 6.2% of gross income.

Front

How do you calculate the Social Security tax due on an annual salary of $30,000?

Back

Social Security Tax = Annual Salary x 6.2% = $30,000 x 0.062 = $1,860.

Front

What is the Medicare tax rate for employees?

Back

The Medicare tax rate is 1.45% of gross income.

Front

If your annual salary is $30,000, what is the total Medicare tax due?

Back

Medicare Tax = Annual Salary x 1.45% = $30,000 x 0.0145 = $435.