Consumer Math

Front

What is simple interest?

Back

Simple interest is a way to calculate the interest charge on a loan or the interest earned on an investment based on the original principal amount, the interest rate, and the time period.

Front

How do you calculate simple interest?

Back

Simple Interest = Principal × Rate × Time.

Front

If you deposit $1,000 at a 5% interest rate for 3 years, how much interest will you earn?

Back

You will earn $150 in interest.

Front

What is the formula to find the total amount after interest is added?

Back

Total Amount = Principal + Simple Interest.

Front

What is a percentage?

Back

A percentage is a fraction of 100, used to express how much of something there is in relation to a whole.

Front

How do you calculate sales tax?

Back

Sales Tax = Price × Sales Tax Rate.

Front

If a shirt costs $20 and the sales tax is 8%, what is the total cost?

Back

The total cost is $21.60.

Front

What does it mean to split a bill?

Back

To split a bill means to divide the total amount owed equally among the people sharing the cost.

Front

If Sam and Carl's total bill is $30 and they split it evenly, how much does each pay?

Back

Each pays $15.

Front

What is the formula to find the total cost including tax?

Back

Total Cost = Price + (Price × Sales Tax Rate).