1st Semester Final Review -Financial Math

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What is a finance charge?

Back

A finance charge is the cost of borrowing money, typically expressed as a percentage of the amount borrowed, which includes interest and any fees.

Tags

CCSS.7.RP.A.3

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How do you calculate the total finance charge on a cash advance?

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Total finance charge = (Amount borrowed) x (Daily interest rate) x (Number of days) + any fees.

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CCSS.7.RP.A.3

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What is the formula to calculate the Social Security deduction from gross pay?

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Social Security deduction = Gross pay x 0.062 (6.2%).

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CCSS.7.RP.A.3

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How do you find the percent of commission earned?

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Percent of commission = (Commission earned / Total sales) x 100.

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What is the Medicare deduction rate?

Back

The Medicare deduction rate is 1.45% of gross pay.

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CCSS.7.RP.A.3

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What is a cash advance on a credit card?

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A cash advance is a service provided by credit card issuers that allows cardholders to withdraw cash, often with high fees and interest rates.

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CCSS.5.NBT.A.2

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What is the daily periodic interest rate?

Back

The daily periodic interest rate is the interest charged on a loan or credit balance calculated on a daily basis.

Tags

CCSS.7.RP.A.3

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How do you calculate the total amount to be repaid on a cash advance?

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Total amount to be repaid = Amount borrowed + Total finance charge.

Tags

CCSS.7.RP.A.3

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What is the significance of understanding finance charges?

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Understanding finance charges helps consumers make informed decisions about borrowing and managing credit.

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What is the difference between gross pay and net pay?

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Gross pay is the total earnings before deductions, while net pay is the amount received after all deductions.

Tags

CCSS.7.RP.A.3