Consumer math review

Front

What is a tip and how is it calculated?

Back

A tip is a small amount of money given to someone for their service, typically calculated as a percentage of the total bill. For example, a 20% tip on a $25 bill is $5.00.

Front

What is simple interest?

Back

Simple interest is calculated on the principal amount only, not on the interest accrued. The formula is: Interest = Principal x Rate x Time.

Front

How do you calculate the total amount in a bank account after earning simple interest?

Back

Total Amount = Principal + Interest. For example, if Kennedy deposits $3,000 at 2.9% for 10 years, the interest earned is $3,000 x 0.029 x 10 = $870, making the total $3,870.

Front

What does a discount mean in shopping?

Back

A discount is a reduction in the price of an item. For example, if a jacket costs $85 and is 40% off, the discount is $34, making the final price $51.

Front

How do you find the balance in a bank account after a transaction?

Back

To find the balance, subtract the amount spent from the previous balance. For example, if the balance was $500.24 and $70.57 was spent, the new balance is $500.24 - $70.57 = $429.67.

Front

What is the formula to calculate the interest earned on a savings account?

Back

Interest = Principal x Rate x Time. For example, if Claire deposited $1,800 at 2.5% for 12 years, the interest earned is $1,800 x 0.025 x 12 = $540.

Front

What is the percentage formula?

Back

Percentage = (Part/Whole) x 100. For example, if you want to find what percentage $5 is of $25, it would be ($5/$25) x 100 = 20%.

Front

How do you calculate the final price after applying a discount?

Back

Final Price = Original Price - Discount Amount. For example, if an item costs $100 and has a 20% discount, the discount is $20, so the final price is $100 - $20 = $80.

Front

What is the importance of budgeting?

Back

Budgeting helps manage income and expenses, ensuring that you do not overspend and can save for future goals.

Front

What is a principal amount in finance?

Back

The principal amount is the initial sum of money borrowed or invested, before interest.