FA 1st Semester Final Exam 2024

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

How can you save money effectively?

Back

By reducing your discretionary expenses.

Front

What is an example of a fixed essential expense?

Back

Car payment.

Front

What happens to your monthly payments when you make a larger down payment?

Back

Your monthly payments become smaller.

Front

What type of insurance coverage pays for car damage due to natural disasters or vandalism?

Back

Comprehensive coverage.

Front

Define 'Principal' in the context of loans and interest.

Back

Principal is the original sum of money borrowed or invested, excluding any interest.

Front

What is 'Discretionary Expense'?

Back

Expenses that are not essential and can be adjusted or eliminated, such as entertainment.

Front

Explain 'Fixed Expense'.

Back

Expenses that remain constant over time, such as rent or car payments.

Front

What is the difference between 'Collision' and 'Comprehensive' insurance?

Back

Collision insurance covers damage to your car from an accident, while comprehensive covers non-collision events.

Front

What does 'Rate' refer to in the context of interest calculations?

Back

Rate is the percentage of the principal charged as interest over a specific period.