Financial Mathematics Concepts

This video tutorial covers various financial math topics relevant to college mathematics exams. It explains how to convert percentages to decimals, calculate markup and discounts, and understand taxes and profit. The video also delves into interest calculations, including simple, compound, and continuous interest, and explains APR and present value. Example problems are provided to reinforce learning.

How do you convert 35% to a decimal?

• 35.0

• 3.5

• 0.35

• 0.035

What is the percent increase if a stock price goes from $30 to $35?

• 10%

• 20%

• 15%

• 16.7%

If a refrigerator costs $450 and is marked up by 40%, what is the sales price?

• $700

• $580

• $630

• $500

A TV originally priced at $800 is discounted by 15%. What is the new price?

• $600

• $720

• $750

• $680

What is the total bill if the items cost $80 and the sales tax is 8%?

• $90.00

• $84.00

• $88.00

• $86.40

How is profit calculated?

• Cost divided by revenue

• Cost minus revenue

• Revenue minus cost

• Revenue plus cost

What is the formula for simple interest?

• I = P*T

• I = P + RT

• I = PRT

• I = P/R

What is the formula for continuous compound interest?

• A = P + rt

• A = Pe^(rt)

• A = P(1 + rt)

• A = P(1 + r/n)^(nt)

How do you calculate the annual percentage rate (APR)?

• (1 + r/n)^(nt) - 1

• (1 + n/r)^r - 1

• (1 + r)^n - 1

• (1 + r/n)^n - 1

What is the present value of $5000 in 6 years at 7% interest compounded quarterly?

• $3500.00

• $4000.00

• $3297.19

• $4500.00