Algebra with Finance SEM 1 Exam REVIEW

Front

What does the T represent in the simple interest formula I=PRT?

Back

T represents Time.

Front

What are the four programs included in the Social Security bill according to FDR?

Back

Unemployment compensation, old-age pensions, increased services for children, prevention of ill health.

Front

If Paul deposits $4000 in a bank with a compound interest rate of 4% per year, how much will he have in 5 years?

Back

$4866.61.

Front

What is net pay?

Back

Net pay is the amount of money you receive after deductions.

Front

Which type of account is a credit account?

Back

Borrowing money.

Front

What is the formula for calculating simple interest?

Back

I = PRT, where I is interest, P is principal, R is rate, and T is time.

Front

What does the principal (P) represent in the simple interest formula?

Back

The principal (P) is the initial amount of money deposited or borrowed.

Front

What is the difference between gross pay and net pay?

Back

Gross pay is the total earnings before deductions, while net pay is what you take home after deductions.

Front

What is compound interest?

Back

Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods.

Front

How do you calculate compound interest?

Back

A = P(1 + r/n)^(nt), where A is the amount, P is principal, r is annual interest rate, n is number of times interest applied per time period, and t is the number of time periods.