Advanced Financial Algebra Final Exam

Front

What is the formula for calculating future value with compound interest?

Back

Future Value = P(1 + r/n)^(nt), where P = principal, r = annual interest rate, n = number of times interest is compounded per year, t = number of years.

Front

What is the future value of $5000 at an interest rate of 3.75% compounded monthly for 25 years?

Back

$12,749.30

Front

What is a debit card?

Back

A debit card is a payment card that withdraws money directly from a checking or savings account.

Front

What is a credit card?

Back

A credit card is a payment card that allows the holder to borrow funds to pay for goods and services, with the agreement to pay back the borrowed amount plus interest.

Front

How do you calculate 12% of a number?

Back

To calculate 12% of a number, multiply the number by 0.12.

Front

What is 12% of 40?

Back

4.8

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100.

Front

What is 25% as a decimal?

Back

0.25

Front

How do you calculate the discount amount?

Back

Discount Amount = Original Price x Discount Rate.

Front

If a mechanical pencil costs $6.50 and is discounted by 25%, what is the discount amount?

Back

$1.63