#2.24 - 1st Semester Exam Review 2024

Front

Interest compounded semiannually is compounded _____ times per year?

Back

2

Front

Minnie deposited $6000 into an account that pays 3.6% interest, compounded quarterly. What is Minnie's balance at the end of 24 months?

Back

$6445.86

Front

Tim and Tammy invest a total of $143,000 at a ratio of 4:8. What percent, rounded to the hundredth, is owned by Tim?

Back

33.33%

Front

Steph buys a $8725 bedroom set on a deferred payment plan. If the minimum monthly payment is $100, what does Steph need to pay in the final month to avoid any finance charge?

Back

$7025.00

Front

You buy a $11,000 car and pay 8 1/4% tax. What is the total cost of the car?

Back

$11907.50

Front

Define compound interest.

Back

Interest calculated on the initial principal and also on the accumulated interest of previous periods.

Front

What is the formula for calculating compound interest?

Back

A = P(1 + r/n)^(nt), where A is the amount, P is the principal, 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 does it mean to pay interest quarterly?

Back

Interest is calculated and added to the principal four times a year.

Front

How do you calculate the total cost of an item including tax?

Back

Total Cost = Price + (Price * Tax Rate).

Front

What is a deferred payment plan?

Back

An agreement that allows a buyer to pay for a purchase over time, often with interest.