Fall 2024 - AFA Final Exam Review

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What is a subsidized loan?

Back

A subsidized loan is a type of loan where the government pays the interest while the borrower is in school.

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What is an unsubsidized loan?

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An unsubsidized loan is a type of loan where the borrower is responsible for paying the interest while in school.

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What is the drag factor in relation to vehicle braking?

Back

The drag factor is a coefficient that represents the friction between the tires and the road surface, affecting how quickly a vehicle can stop.

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How do you calculate the monthly payment for a loan?

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The monthly payment can be calculated using the formula: M = P[r(1+r)^n] / [(1+r)^n – 1], where M is the total monthly payment, P is the loan amount, r is the monthly interest rate, and n is the number of payments.

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What is the formula for straight-line depreciation?

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The formula for straight-line depreciation is: Depreciation Expense = (Cost of Asset - Salvage Value) / Useful Life.

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What does time and a half mean in terms of overtime pay?

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Time and a half means that an employee is paid 1.5 times their regular hourly wage for hours worked beyond the standard workweek.

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What is the significance of a credit score in borrowing?

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A credit score is a numerical representation of a borrower's creditworthiness, influencing the interest rates and terms of loans.

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How do you determine the value lost per year in depreciation?

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The value lost per year in depreciation can be determined by the slope of the depreciation equation, which indicates the annual decrease in value.

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What is the importance of skid mark length in accident investigations?

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Skid mark length helps investigators estimate the speed of a vehicle at the time of braking, which is crucial for accident reconstruction.

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What is the difference between gross pay and net pay?

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Gross pay is the total earnings before deductions, while net pay is the amount received after all deductions, such as taxes and benefits.