Algebra with Finance Final Bell Ringer 3

Front

What is the formula to calculate annual federal taxes based on gross biweekly pay?

Back

Annual Federal Taxes = Gross Biweekly Pay × 26 × Tax Rate

Tags

CCSS.6.EE.B.7

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How do you calculate Social Security taxes from an annual salary?

Back

Social Security Taxes = Annual Salary × 6.2%.

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CCSS.6.EE.B.6

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What is the formula to calculate future rent after a percentage increase over several years?

Back

Future Rent = Current Rent × (1 + Rate of Increase) ^ Number of Years

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CCSS.HSF.BF.A.2

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What is the formula to calculate monthly mortgage payments on a loan?

Back

Monthly Payment = Loan Amount × (Monthly Interest Rate × (1 + Monthly Interest Rate) ^ Number of Payments) / ((1 + Monthly Interest Rate) ^ Number of Payments - 1)

Tags

CCSS.8.EE.C.7B

Front

What is a back-end ratio in personal finance?

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Back-end Ratio = Total Monthly Debt Payments / Monthly Gross Income.

Front

What is the significance of a 36% benchmark in loan applications?

Back

A 36% benchmark indicates that total monthly debt payments should not exceed 36% of gross monthly income for loan approval.

Front

How do you calculate the total amount of taxes paid based on a percentage tax rate?

Back

Total Taxes Paid = Gross Income × Tax Rate.

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CCSS.6.EE.B.6

Front

What is the impact of a 5.5% annual rent increase on long-term rental costs?

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A 5.5% annual increase compounds, leading to significantly higher rent over time.

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CCSS.HSF.BF.A.2

Front

What is the difference between gross income and net income?

Back

Gross Income is total earnings before taxes and deductions; Net Income is what remains after all deductions.

Front

How do you determine if a loan is affordable based on income?

Back

Compare the back-end ratio to the lender's acceptable threshold (e.g., 36%).