#2.24 - 1st Semester Exam Review 2024

Front

What is the formula for calculating compound interest?

Back

A = P(1 + r/n)^(nt) where A is the amount of money accumulated after n years, including interest. P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the number of years the money is invested or borrowed.

Front

If an account pays 3.6% interest compounded quarterly, how often is interest added to the account?

Back

Interest is added to the account 4 times per year.

Front

How do you calculate the ownership percentage in a partnership?

Back

Ownership percentage = (Individual's investment / Total investment) x 100.

Front

What is the total amount owed to an employment agency that charges 26% of the first 3 months' pay for a job that pays $1200 semimonthly?

Back

The total amount owed is $1872.

Front

What is the definition of gross pay?

Back

Gross pay is the total amount of money earned by an employee before any deductions such as taxes, insurance, and retirement contributions.

Front

How do you calculate overtime pay?

Back

Overtime pay is calculated as: Overtime pay = (Hourly rate x 1.5) x Overtime hours.

Front

What is the meaning of 'semimonthly' in terms of pay periods?

Back

Semimonthly means that an employee is paid twice a month, typically on specific dates such as the 15th and the last day of the month.

Front

If you work 47 hours in a week and your hourly wage is $15.90, how do you calculate your gross pay?

Back

Calculate regular pay for 40 hours and overtime pay for 7 hours. Regular pay = 40 x $15.90; Overtime pay = 7 x ($15.90 x 1.5). Total gross pay = Regular pay + Overtime pay.

Front

What is the definition of compound interest?

Back

Compound interest is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Front

How many times is interest compounded if it is compounded semiannually?

Back

Interest is compounded 2 times per year.