1.1 Fractions & Tax Dollars

Front

What is a fraction?

Back

A fraction represents a part of a whole and is expressed as a ratio of two integers, with a numerator (top number) and a denominator (bottom number).

Front

How do you calculate a percentage of a number?

Back

To calculate a percentage of a number, multiply the number by the percentage (in decimal form). For example, to find 25% of 200, calculate 200 * 0.25 = 50.

Front

What is the formula for calculating income tax?

Back

Income Tax = Annual Income x Tax Rate.

Front

What are Payroll Taxes?

Back

Payroll taxes are taxes imposed on employers and employees, typically used to fund social insurance programs like Social Security and Medicare.

Front

What is the difference between Social Security and Medicare?

Back

Social Security provides financial assistance to retirees and disabled individuals, while Medicare is a health insurance program for people aged 65 and older, and for some younger individuals with disabilities.

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, 25% becomes 0.25.

Front

What is FICA?

Back

FICA stands for the Federal Insurance Contributions Act, which mandates a payroll tax to fund Social Security and Medicare.

Front

What is the significance of the denominator in a fraction?

Back

The denominator indicates the total number of equal parts the whole is divided into, while the numerator indicates how many of those parts are being considered.

Front

How do you find the total amount after tax?

Back

To find the total amount after tax, add the tax amount to the original amount. For example, if the original amount is $100 and the tax is $20, the total is $120.

Front

What is the purpose of income tax?

Back

Income tax is a tax levied on individuals or entities based on their income, used to fund government services and programs.