Exam Review Math Data and Financial Literacy

Front

What does the 'r' stand for in the formula for compound interest?

Back

Rate

Front

How do you calculate federal income tax?

Back

Federal income tax is calculated based on your taxable income and the applicable tax rate.

Front

If Mike worked 5 hours on Monday, 10 hours on Tuesday, 7.5 hours on Thursday, and 15 hours on Saturday, how do you calculate his total salary?

Back

Total salary = (Regular hours * hourly rate) + (Overtime hours * overtime rate).

Front

What is the definition of salary?

Back

Pay that is the same each week regardless of how much you work.

Front

How do you calculate the future value of an investment in a Certificate of Deposit (CD)?

Back

Future Value = Principal * (1 + interest rate)^number of years.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal * Rate * Time.

Front

What is the difference between gross wages and net wages?

Back

Gross wages are the total earnings before deductions; net wages are what you take home after deductions.

Front

What does it mean for interest to be compounded annually?

Back

Interest is added to the principal once a year, and future interest calculations are based on the new total.

Front

What is the purpose of a budget?

Back

A budget helps manage income and expenses to ensure financial stability.

Front

What is the definition of a Certificate of Deposit (CD)?

Back

A CD is a savings account with a fixed interest rate and fixed date of withdrawal.