Ch 5 Financial Models - wages and income tax

The original principal amount thereof plus all accrued and compounded to the particular date of calculation.

• Amortization Schedule

• Compound Amount

• Finance Charge

• Stock

Larry invested $27,000 in a savings account that pays an annual interest rate of 1.8%. The savings account is set to compound quarterly (4 times per year). How much is in Larry’s account after 5 years? This is an example of _____

• Amortization Schedule

• Finance Charge

• Compound Amount

• Annual Percentage Rate

____ is a percentage determined the quotient between the borrower's housing expense by the pre-tax income.

 ______is used to determine the periodic payment amount due on a loan, based on the amortization process

• Compound amount

• Amortization Schedule

• Annual Percentage Rate

• Bonds

The following is an example of what kind of rate: A $1000 loan repaid after one year with $80 interest plus a $10 service fee, has a total finance charge of $90 and so has an APR of 9%.

____ is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person.

• Stocks

• Bonds

• Life Insurance

• Compound amount

_____consists of the shares of which ownership of a corporation or company is divided.

• Housing rate

• Stock

• Amortization Schedule

• Compound

_______is a type of security under which the issuer owes the holder a debt, and is obliged – depending on the terms 

• Stocks

• Bonds

• Amortization Schedule

• Housing expense ratio

What is your annual gross pay if you work 6.50 hours per week at $10.50 per hour for 50 weeks a year?

What amount will be deducted from your weekly pay for social security tax (6.2%) you earn $12.25 per hour working 7.5 hour 5 days a week?