AMDM B Final Exam Review S1T2 2024 2025

Front

What is depreciation?

Back

Depreciation is the reduction in the value of an asset over time, often due to wear and tear. It is commonly used in accounting to allocate the cost of a tangible asset over its useful life.

Front

How do you calculate the value of an asset after depreciation?

Back

The value of an asset after depreciation can be calculated using the formula: Value = Initial Cost × (1 - Depreciation Rate)^Number of Years.

Front

What is 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

What is the formula for compound interest?

Back

The formula for compound interest is A = P (1 + r/n)^(nt), where A is the amount of money accumulated after n years, including interest, P is the principal amount, 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.

Front

What is simple interest?

Back

Simple interest is calculated only on the principal amount of a loan or deposit, not on the interest that accumulates over time.

Front

What is the formula for calculating simple interest?

Back

The formula for calculating simple interest is I = P × r × t, where I is the interest, P is the principal amount, r is the annual interest rate (decimal), and t is the time in years.

Front

How do you find the original price of a product after a discount?

Back

To find the original price after a discount, use the formula: Original Price = Sale Price / (1 - Discount Rate).

Front

What is a percentage?

Back

A percentage is a fraction expressed as a part of 100. It is used to compare relative sizes and to express how much one quantity is of another.

Front

How do you convert a percentage to a decimal?

Back

To convert a percentage to a decimal, divide the percentage by 100. For example, 15% becomes 0.15.

Front

What is the relationship between principal, interest rate, and time in finance?

Back

The relationship is defined by the formulas for simple and compound interest, where the total amount repaid or accumulated depends on the principal amount, the interest rate, and the time period.