Upgrade to remove ads
Math of Finance Final Study Guide
Terms in this set (34)
Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Credit cards allow you to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash. You probably have at least one credit card and one debit card in your wallet.
What is a debit card and how is it used? Is it a type of credit card, charge card or something else?
Interest is the charge for borrowing money. Simple interest is interest paid only on the initial amount borrowed and not on past interest. It is common practice to call the amount deposited the Capital, C, the rate, r, of interest per year (as a percentage) and the length of time the money is deposited for, t in years. Interest is paid to the lender by the borrower in the case of a loan or from the financial institution to the depositor in the case of a savings account.
Define interest. Is it money paid to a bank, by a bank, or can it be both?
The Truth in Lending Act (TILA) protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans.
What is the Truth-Lending Act? Who does it protect?
The FDCPA only applies to third-party debt collectors, such as those who work for a debt collection agency. Credit card debt, medical bills, student loans, mortgages, and other kinds of household debt are covered by the law.
What is the Fair Debt Collection Practices Act? Who does it protect?
If you don't pay your balance in full by the due date each month and there is no promotional 0% APR period, you will incur a finance charge based on your card's APR and the remaining balance. Generally, credit cards require relatively low minimum payments compared with balances
With a credit card, is there a finance charge when the balance is paid in full each month?
The mean is calculated by the sun of all of the numbers in a data set divided by the number of elements (numbers).
Explain how to find the mean of a data set.
The median is the middle number when the numbers are in ascending to descending order.
Explain how to find the median of a data set.
r=1- y. 1
1- (16,400) 1
(23,000) 4. =$810.77
The formula for the exponential depreciation rate expressed as a decimal is to the right, where r is percent depreciation in decimal, y is the car value after x years, and A is the starting value of the car. Find the depreciation rate of a 4 year old car that now sells for $16,400. When it was new it was $23,000.
Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. Statement that reports an employee's annual wages and the amount of taxes withheld from their paycheck. If you work for an employer, then your employer withholds income taxes from each of your paychecks.
What is W-2 form? What information does it give?
Your filing status was single or married filing jointly. You did not claim anyone as your dependent. You (and your spouse, if you're filing jointly) were under age 65 in the relevant tax year, and not blind. Your taxable income was less than $100,000. You had taxable income of less than $100,000 with less than $1,500 of interest income.
You claimed no dependents.
Who can file a 1040EZ form for their taxes? What are the requirements?
A tax exemption is the right to exclude all or some income from taxation by federal or states governments. Most taxpayers are entitled to various exemptions to reduce their taxable income, and certain individuals and organizations are completely exempt from paying taxes. Examples include exemption of charitable organizations from property taxes and income taxes, veterans, and certain cross-border or multi-jurisdictional scenarios.
What is an exemption? Give an example of an exemption for tax purposes.
Income from wages, salaries, interest, dividends, business income, capital gains, and pensions received during a given tax year are considered taxable income in the United States. These types of income would be classified as ordinary income and are taxable using ordinary income tax rates.
Define income tax. Give some examples of things for which you would need to pay income tax.
A tax table is a chart that displays the amount of tax due based on income received. The tax rate in the table may be shown as a discrete amount, a percentage rate, or a combination of both. Tax tables are used by individuals, companies, and estates for both standard income and capital gains.
What is a tax table? How does it display taxable income?
.25inch= 24ft = 6
3ft. 1 3 = 2 inches
If a floor plan has a scale of 1/4 inch= 3 feet, find the length of the room on a floor plan if the actual room length is 24 feet.
As a general rule, you want to spend no more than 30 percent of your monthly gross income on housing. If you're a renter, that 30 percent includes utilities, and if you're an owner, it includes other home-ownership costs like mortgage interest, property taxes and maintenance.Jun
Have financial experts given guidelines for what percent of gross income should be allocated for rent? If so, what is the percentage?
A security deposit is a sum that a new tenant pays to a landlord or property management company before moving in. Security deposits are the first line of defense for landlords. They provide insurance if a tenant causes damages to the apartment that's beyond normal wear and tear.
What is a security deposit? Who and what does it protect?
A cash flow analysis determines a company's working capital—the amount of money available to run business operations and complete transactions. That is calculated as current assets (cash or near-cash assets, like notes receivable) minus current liabilities (liabilities due during the upcoming accounting period)
What is a cash flow analysis?
Variable costs vary based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments. An example of variable cost could include Commission on sales, credit card fees, wages of part-time staff, etc. An example of fixed cost may include Depreciation, interest paid on capital, rent, salary, property taxes, insurance premium
What is the difference between variable expenses and fixed expenses? List some examples.
Typically there are around 8.8 hours in a work day.
How many hours are there in a typical work day?
A kilowatt is simply 1,000 watts, which is a measure of power. So, for example, the 10,000 watt electric shower in the top bullet point above could also be called a 10 kilowatt shower. A kilowatt hour (kWh) is a measure of energy.
What is the relationship between watt-hours and kilowatt hours?
60watts= 110 = 60 = .06 (.10)= .006
A person runs a 60 watt lightbulb all day while they work. How much will it cost to run that lamp if the price per kilowatt hours is $0.10?
1.15 times 98.27= 113.01.
How do you calculate an increase of 15%? Find what a 15% increase in a $98.27 cell phone bill would look like.
A personal budget spreadsheet offers an individual a way to determine the state of his finances and help him or her plan spending over the course of a period of usually a month or a year. ... With a budget spreadsheet, money is managed, and every expense is allotted enough amount without exhausting the coffers.
What is a spreadsheet? Can it be used for budgets? How?
Finance charges vary based on the type of loan or credit you have and the company. A common way of calculating a finance charge on a credit card is to multiply the average daily balance by the annual percentage rate (APR) and the days in your billing cycle. The product is then divided by 365 .
How are finance charges calculated for credit cards?
A piecewise-defined function is a function defined by multiple sub-functions, where each sub-function applies to a different interval in the domain. Piecewise definition is actually a way of expressing the function, rather than a characteristic of the function itself.
What is a piece wise function?
Given the equation to the right, what would be the value of c (8)
115 divided by 2= 57.5
Find the median of the stem and leaf plot to the right.
$1,265 divided by 12= $105.41
If home insurance is $1,265 annually, how much is it monthly?
In the problem above, the insurance company charges a $2 convenience charge for monthly payments. What is the monthly payment with the convenience charge?
Box number 2
Look at a W-2 form on page 346. In what box number is federal tax withheld.
Box number 4
Looking at that same W-2, what box number is state tax withheld?
15 times 40= 600
600 times 2= 1200
Their biweekly gross pay would be 1200.
If someone earns $15 an hour and works 40 hours a week, what is their biweekly gross pay?
The gross pay is their total salary before any taxes and other withholdings are deducted from their paycheck. The net pay is the income that an employee would receive after all possible deductions have been made. This represents the actual total amount of money they can use, or their take-home pay.
How do you calculate net pay? How is that different from gross pay?
14 divided by $35.75= $0.39160
If you pay $35.75 for 14 gallons of gas, what was the charge per gallon to the nearest cent?
Other sets by this creator
Unit 1 Advanced Composition Post-Test Review
Chapter 4 and Chapter 5 Environmental Science Test…
MARKET STRUCTURES AND BUSINESS ORGANIZATIONS TEST
Supply vocab set
Other Quizlet sets
O B Final
Bio 162 Final Exam
Steam Sterilization Study Guide 1
1 çağdaş türk I.ve II.Dünya Savaşı Arasında Dünyad…