Fall 2024 - AFA Final Exam Review

Front

What is the formula to calculate gross pay for an employee who works overtime?

Back

Gross Pay = (Regular Hours x Hourly Rate) + (Overtime Hours x Hourly Rate x 1.5)

Front

How do you calculate the net price of college after scholarships and grants?

Back

Net Price = Total Tuition - (Scholarship Amount + Grant Amount)

Front

What is the formula for compound interest?

Back

A = P(1 + r/n)^(nt), where A is the amount, P is the principal, r is the rate, n is the number of times interest is compounded per year, and t is the number of years.

Front

What is straight-line depreciation?

Back

Straight-line depreciation is a method where the same amount is deducted from the value of an asset each year until it reaches zero.

Front

How do you determine the monthly payment for a loan?

Back

Monthly Payment = [Principal x (r(1 + r)^n)] / [(1 + r)^n - 1], where r is the monthly interest rate and n is the number of payments.

Front

What is the tax calculation for married filing jointly?

Back

Tax is calculated based on the tax brackets set by the IRS for married couples filing jointly.

Front

What is the significance of the PELL Grant in college funding?

Back

The PELL Grant is a federal subsidy that provides financial aid to low-income undergraduate students.

Front

How do you calculate the total cost of a car after depreciation?

Back

Total Cost = Purchase Price - (Annual Depreciation x Number of Years) where Annual Depreciation = Purchase Price / Useful Life.

Front

What does 'time and a half' mean in terms of overtime pay?

Back

Time and a half means the employee is paid 1.5 times their regular hourly rate for hours worked over the standard 40 hours.

Front

What is the formula for calculating the balance in a savings account with compound interest?

Back

Balance = Principal x (1 + Interest Rate)^(Number of Compounding Periods) for the given time.