Financial Math A: Final Review 2024

Front

What does 'compounding interest' mean?

Back

Interest added periodically into the original account.

Front

If Joe earned $3000 in August and 15% more in September, how much did he earn in September?

Back

$3,450

Front

What is the sale price of a TV regularly priced at $600 with a 25% discount?

Back

$450

Front

What does bodily injury liability coverage provide?

Back

Coverage when the insured driver causes an accident where another person is injured.

Front

What does property damage liability coverage provide?

Back

Coverage for all damaged property in an accident.

Front

Define 'interest rate'.

Back

The percentage at which interest is calculated on an investment or loan.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time.

Front

What is a budget?

Back

A plan that outlines expected income and expenses over a specific period.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant, while variable expenses can change.

Front

What is a credit score?

Back

A numerical representation of a person's creditworthiness.