Financial Math

liquidity

The ability of funds to be available for meeting immediate wants and needs.

discount

The amount deducted from the usual price.

job expenses

The amount that an employee contributes from his or her total job benefits for professional development, tools, and fees.

correlation

The measure of the relationship between independent and dependent variables.

total job benefits

The total amount that a employer pays an employee which includes total employee benefits and gross pay.

A debit

a deduction as recorded in an account.

Any item or expense subtracted from gross income

a deduction.

A budget

a list of all income and planned expenses.

liability

a responsibility, an obligation, or a debt

What is Kendra's net cash flow?

a. $295

KaiLynn has total job benefits of $41,000 per year in her sales job. She pays $63 each month for a cell phone for work. She is also required to purchase samples kits which cost $235 each. If KaiLynn paid for 4 samples kits last year, what was her total employment compensation?

a. $39,304

Which employee did not have the same dollar amount in sales for the month of February as the other two employees?

a. Employee #1.

To reconcile

an account is to check it against another set of records for agreement.

A straight commission

an employee that generates his or her income from commission only.

Occasional expense

an expense that does not happen on a regular basis

A credit

an item of payment or value as recorded in an account.

An asset

an item that is owned and has value.

financial goal

an objective driven by specific future financial needs.

The total employee benefits

are benefits paid to the employee, by the employer, as a dollar amount or a percent of an individuals gross pay.

Flexible expenses

are expenses that change from one period to the next.

Fixed expenses

are expenses that remain the same from one period to the next.

Income taxes

are taxes on income levied by the government for both individuals and companies.

ATM usage fees

are the fees banks charge for the use of their Automated Teller Machines (ATMs).

Successive discounts

are when several discounts are taken one at a time from the usual price.

Desiree works 28 hours per week. She has a monthly income of $120 from investments. Desiree also plays in a band one night a week making $200. She has a total annual income of $49,696. Desiree wants to ask her boss for a raise so that next year she can have a total income of $51,880. Assuming the other incomes remain the same, how much of an hourly raise will Desiree need?

b. $1.50

Kai had a gross weekly paycheck of $616 last week. Kai worked 6 hours for 4 of the days and 8 hours on 1 day. What is Kai's hourly rate of pay?

b. $19.25

An employee has an annual salary of $48,700. They receive $1,530 in health insurance and $2,810 in paid time off per year. They drive their personal vehicle for work which costs them $500 per month, but the company reimburses them $0.53 per mile for the total work miles driven. If the employee drives 9,000 miles for work for the year, what will be their total employment compensation?

b. $51,810

Bob gets paid an annual salary of $30,000 and earns 5% commission on all sales he makes. If Bob wants to make $6,000 this month, how much in sales does he need to have?

b. $70,000

Elisha is a photographer and charges a set fee to photograph weddings. This is an example of _____ income.

b. earned

Gary earned a gross pay of $1,047.30 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social Security tax deducted from Gary's gross pay.

c. $64.93

Molly has biweekly gross earnings of $839.52. By claiming 1 more withholding allowance, Molly would have $16 more in her take home pay. How many withholding allowances does Molly currently claim?

c. 3

Which of the following employees has the largest gross pay?

c. Employee C: Total employee benefits $1,000 Total job benefits $51,900

Padraig receives total employment compensation of $70,000 and had $2,000 in job expenses. Which of the following could be true about Padraig's gross pay and total employee benefits?

c. His total employee benefits are 12.5% of his annual gross pay of $64,000.

Income generated through a one time sale of an item

capital gains.

Shaquil receives total employee benefits that are 13.5% of his gross annual pay. If Shaquil has a gross annual pay of $40,000, how much in total employee benefits does he receive?

d. $5,400.00

Lakisha's employer pays $2,150 in health insurance and $86 in life insurance per year. She also gets $3,520 in paid time off per year. Her monthly gross pay is $4,370. What are Lakisha's total job benefits per year?

d. $58,196

What is the employee's gross pay?

d. $726.80

Which of the following employees has the greatest total employee compensation?

d. Employee D: total job benefits $50,100 and total job expenses $900

Who had the largest dollar amount in sales for the month of December?

d. They each had the same dollar amount in sales.

What should be included in a financial plan to protect assets?

d. how much insurance you will carry

A trend

defined as the general direction in which something tends to move.

A unit rate

describes how many units of the first type of quantity corresponds to one unit of the second type of quantity.

Earned income

income generated from employment.

A check register

is a booklet used to record account transactions.

The pyramid scheme

is a deceptive advertising technique that has the buyer put money into a plan, agree to sign up subsequent members and potentially reap large benefits.

Bait and switch

is a deceptive way of selling that involves advertising a product at a very low price in order to attract customers who are then persuaded to switch to a more expensive product.

A quota

is a dollar amount in which a quota based employee must exceed in order to earn a commission.

A gratuity

is a favor or gift, usually in the form of money, given in return for service.

An overdraft fee

is a fee that an account holder pays when withdrawals from a bank account exceed the available balance causing the account to have a negative balance.

A budget

is a list of all income and planned expenses.

Sales tax

is a tax collected by a merchant and then sent to the government.

A variable interest rate

is an interest rate that can change over the life time of the account.

A fixed interest rate

is an interest rate that does not change for the life time of the account.

An overdraft fee

is charged to an account when withdrawals from it exceed the available funds and cause a negative balance. This fee is incurred for every transaction that exceeds the available funds.

Passive income

is income generated by a process in which the individual is not actively involved

Income

is money coming in through wages, allowance or other sources.

The total employment compensation

is the amount an employee receives after subtracting deductions from the total job benefits.

The closing balance

is the balance, after deductions, in an account at the end of a predetermined period of time.

The interest rate

is the fee charged by the bank for the use of the money when taking out a loan. It is also the fee you are paid by the bank for letting the bank use your money.

The minimum opening balance

is the initial dollar amount set by the bank that is required to open a account.

Comparison shopping

is the process of shopping for bargains by comparing the prices of competing brands or stores.

Financial stability

is the state of being steady or constant in regards to finances.

Graduated commission

is when an individual makes a certain percentage based on a set amount of sales and any amount over that will be earnings at a higher percent commission.

Cash inflow

money received.

Cash outflow

money spent.

An overdraft

occurs when withdrawals from a bank account exceed the available balance which gives the account a negative balance.

The unit price

of an item is the cost for each unit.

Net cash flow

refers to the difference between a company's cash inflows and outflows in a given period. In the strictest sense, net cash flow refers to the change in a company's cash balance as detailed on its cash flow statement.

Gross pay

the amount of income before taxes or expenses.

Net pay

the amount received by an employee after deductions.

Net worth

the difference between assets and liabilities.

Quota based commission

A quota based employee is an employee that generates his or her income from a commission that is a percent of their sales over a certain dollar amount.

withholding allowances

Allowances that reduce the amount of taxes levied on income for both the individual and company is commonly.

Tipped employee.

An employee that generates his or her income in the form of tips or a combination of tips and a hourly wage.

Piece rate employee

An employee that generates income for each item or piece they produce

Expenses

Anything on which money is spent.