Consumer Math Semester 1 Review Flashcardizz

Front

What is compound interest?

Back

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Front

How do you calculate the total interest earned on a savings account with compound interest?

Back

Total Interest = Principal × (1 + r/n)^(nt) - Principal, where r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.

Front

What is the formula to find the average of a set of numbers?

Back

Average = (Sum of all values) / (Number of values).

Front

How do you calculate Social Security and Medicare deductions from gross pay?

Back

Total Deductions = Gross Pay × (Social Security Rate + Medicare Rate). For example, if Social Security is 6.2% and Medicare is 1.45%, then Total Deductions = Gross Pay × 0.06745.

Front

What is a debit card and how does it affect a checking account balance?

Back

A debit card allows you to access funds in your checking account to make purchases. Each transaction reduces the account balance by the purchase amount.

Front

How do you calculate commission on sales?

Back

Commission is calculated based on the sales amount and the commission rate. For tiered commissions, calculate each portion separately and sum them up.

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 (like taxes and benefits) are taken out.

Front

What is the significance of tracking monthly expenditures?

Back

Tracking monthly expenditures helps individuals understand their spending habits, manage their budget, and identify areas for savings.

Front

How do you determine the new balance in a checking account after transactions?

Back

New Balance = Previous Balance - Total Withdrawals + Total Deposits.

Front

What is the purpose of a savings account?

Back

A savings account is designed to hold money that is not intended for daily expenses, allowing it to earn interest over time.