Semester Test - Math of Finance

Front

What is the formula to calculate a percentage of a number?

Back

Percentage = (Part/Whole) x 100

Front

How do you calculate the total amount after applying a percentage increase?

Back

Total Amount = Original Amount + (Original Amount x Percentage Increase)

Front

What is the purpose of the IRS?

Back

The IRS (Internal Revenue Service) is the government agency responsible for tax collection and tax law enforcement.

Front

If 10 is 10% of what number, what is the number?

Back

100

Front

How do you calculate 20% of a number?

Back

Multiply the number by 0.20.

Front

What does FICA stand for and what is its purpose?

Back

FICA stands for Federal Insurance Contributions Act; it funds Social Security and Medicare.

Front

What is the difference between gross income and net income?

Back

Gross income is the total earnings before deductions; net income is what remains after deductions.

Front

What is a tax refund?

Back

A tax refund is the amount returned to a taxpayer when they have overpaid their taxes.

Front

What is the significance of tax brackets?

Back

Tax brackets determine the rate at which income is taxed, with higher income levels being taxed at higher rates.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time.