Financial Literacy Test

Net Worth is the value of one's assets minus one's liabilities.

Simple Interest = Principal x Rate x Time. For example, if you invest $2,000 at an 8% interest rate for 5 years, the interest earned is $800.

Subtracting a discount means reducing the original price by the discount amount to find the final price.

Final Price = $990 + ($990 x 0.09) = $1,079.10.

Fixed income refers to investments that provide regular, fixed payments, such as bonds.

Gross income is the total income earned before any deductions or taxes.

Net Worth = Total Assets - Total Liabilities.

Assets are what you own (e.g., cash, property), while liabilities are what you owe (e.g., loans, debts).

Sales tax is a tax imposed on the sale of goods and services, usually calculated as a percentage of the purchase price.

Budgeting helps individuals plan their finances by tracking income and expenses to ensure they live within their means.