Chapter 8: Financial Algebra Quiz

True or False: All wages, tips, and bonuses are taxable unless specifically excluded.

• True

• False

Write the percent as a decimal. 
4.3%

• 4.3
• .43
• .043
• 4300

A(n) ____________  is a tax charged by most states on the selling price of a good or service, usually expressed as a percent. 

• sales tax 
• total purchase price 
• markdown 
• comparison shopping 

What government department collects personal income tax?

• Federal Government

• IRS

• Social Security Division

• Congress

What does the P in I =PRT mean?

• Power

• Principal

• Product

• Percent

Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.

• $160

• $800

• $80,000

• $16

Monthly means how many times a year?

• 4

• 12

• 52

• 365

Jay'den earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually.

What will be his balance after 15 year?

• $827.52

• $831.10

• $839.45

• $846.80

The Arnold's took out a loan for $195,000 to purchase a home. At a 4.3% interest rate compounded annually, how much total will they have paid after 30 years?

• $412,749.79
• $529.305.61
• $689,546.99
• $640,891.53

Your returns (or interest rate) are 8% a year. How long before your investment doubles?

• 9 years
• 8 years
• 7 years
• Never