Math

A 12-pack of paper towels costs $10. total price ÷ number of units per package

$0.83

*Cost for Lease Period = price of the car - residual value *Total Cost = Down Payment + (Monthly Cost × Number of Months) + Residual Value *monthly cost= (cost for lease period - down payment) + total interest/ # of months Keane wants to lease a car worth $30,000 for 36 months at 4.5% interest and then return it. Its residual value will be $20,000. If he doesn't have to make a down payment, calculate the monthly amount.

$390.28

Carol buys a reference book that originally cost $87.50 for 15% off. She pays a sales tax of 4.5%. What is the total cost of the book?

$77.72

Ann bought three shirts for $23, $20, and $16 and a sweater for $28. The sales-tax rate is 4 percent. How much did she pay all together?

$90.48

percentages to decimals 18%= 18/100 = 0.18 write .32 as a percentage

.32 x 100 = 32%

You want to buy a CD that costs $18.50. The sales-tax rate in your state is 4.5 percent. How much sales tax will you pay for this CD?

0.83

Bonds

A bond is a loan made to a government agency or a corporation for a fixed amount of time. At the end of this period, your principal is returned to you along with the interest earned.

Unsecured Loan

A lender issues an unsecured loan based solely on borrower's creditworthiness. The lender doesn't ask for any collateral.

mutual fund

a group of investments that many individual investors hold in common

damage deposit

advance payment to protect the landlord against damage to the property

stock

an ownership interest in a company

True or false People who pay cash for everything they buy get loans easily.

false

bond

a certificate of debt issued by corporations and governments

annuity

a contract purchased from an insurance company

A set of mugs costs $21.50. The sales-tax rate is 4.5 percent. What is the total amount you need to pay?

$22.47

ratios as fractions 50%= 50/100 50/100= 1/2 50%= 1/2 write 1/4 as a percentage

1/4 x 100% = 100/4= 25% 1/4= 25%

bonds risk and return

risk- Bonds are considered low risk because you almost never lose your original investment. Fluctuating interest rates affect the return on investments in bonds, so the return may vary as well. When the interest rate is low, bonds will not earn much money. return- The return is moderate and depends on the period of investment and the interest rate.

Stock risk and return

risk- The risk is high because the company may perform brilliantly one year and incur a huge loss the following year. return- The returns are very high in the long run.

3 types of ways to invest money

stocks, mutual funds and bonds

Adam celebrated his eighteenth birthday with friends at a Chinese restaurant. The bill came to $287.69 without tax. The service was quite good so he decided to tip the waiter 20 percent.

$57.53= $58

*Gross Pay - Total Deductions = Net Pay Calculate the gross pay: Her hourly wage is $8, and she is paid weekly. Sarah worked for 30 hours during the week, so her gross pay is $8 × 30 hours, or $240.

$240 - $14.88 - $3.48 - $21 = $200.64

*Principal/(1+interest)^time In seven years, Gary will need $50,000 to pay his son's college tuition. If the interest rate is 10 percent, how much should he invest today?

$25,657.90

Ramon bought two pullovers on a buy one, get one 30%-off offer. Each pullover had a list price of $20. How much did Ramon pay for the pullovers?

$34

401(k) plan

a retirement plan offered by employers

*Principal × (1 + interest)^time You want to deposit $4,000 in a bank where you earn an interest rate of 6 percent per year. What will its future value be after five years?

$5,352.92

security deposit

money paid in advance to protect the landlord against nonpayment

Which action would you need to take if you were using a buy one, get one type of discount? 1- make a minimum purchase 2-buy a lot of one item 3-commit to buying more items in the future

1- make a minimum purchase

Five years ago, Rhea put $20,000 into savings. Now it's worth $30,000. Which of the following statements is true for this situation? 1-The present value of $30,000 is $20,000. 2-The future value of $30,000 is $20,000. 3-The present value of $20,000 is $30,000.

1-The present value of $30,000 is $20,000.

*ROI ÷ number of years = annualized ROI Mrs. Green invested $10,000 in mutual fund for a period of 6 years. At the end of 6 years, she received a total amount of $25,000. Now calculate the annualized ROI on Mrs. Green's investment.

150% ÷ 6 = 25%

Which of these statements about demand is true? 1-Demand is the seller's ability and desire to buy goods and services. 2-Demand is the consumer's ability and desire to buy goods and services. 3-Demand is the seller's ability and desire to sell goods and services.

2-Demand is the consumer's ability and desire to buy goods and services.

Which of these statements describes a supply schedule? 1-It is a chart that shows how much of a product the consumer is willing and able to buy at various prices. 2-It is a chart that shows how much of a product the supplier is willing and able to sell at various prices. 3-It is a chart that shows what type of product the supplier is willing and able to sell at various prices.

2-It is a chart that shows how much of a product the supplier is willing and able to sell at various prices.

What are dealer incentives? 1-a deal between the car dealer and the customer 2-a deal between the car manufacturer and car dealer 3-a deal between the car manufacturer and customer

2-a deal between the car manufacturer and car dealer

Mary has to choose between a job and learning French during summer break. What will be the opportunity cost if she wants to study French? 1-having the opportunity to study French 2-losing the opportunity of a summer job 3-paying for the French lessons

2-losing the opportunity of a summer job

Why is it important to reconcile your checkbook? 1-to avoid writing down information about checks 2-to avoid writing checks for more money than is available 3-to avoid writing checks for paying bills

2-to avoid writing checks for more money than is available

The original price of a shirt is $20. The shirt is on sale for a 20% discount. How much money does a buyer save because of the discount? *amount of discount= base price x rate of discount

20 x .20= 4 discount is $4 total price is $16 or you can solve

Match these: to these: 25% 3/4 75% 1 100% 4/5 80% 0.25

25%= 0.25 75%=3/4 100%=1 80%= 4/5

If the price of an item is $34 and the sales tax on it is $1.36, what is the sales-tax rate?

4%

Calculate the monthly finance charge based on the following data: Average daily balance = $40.00 Daily periodic rate = 0.06% (state as a decimal) Days in cycle = 25

60 cents

Secured Loan

A lender issues a secured loan based on collateral. If the borrower cannot repay the loan, the lender receives property or another asset called collateral.

Mutual funds

A mutual fund company is an investment company that pools its investors' money to buy and sell stocks and bonds in many different companies. When you invest in a mutual fund, you buy shares of the mutual fund rather than shares of the individual companies it invests in. The profits from the mutual fund are your returns.

Why is it important to take note of skipped check numbers? A. Skipping a check wastes the check and will end up costing money. B. Locating skipped checks helps to identify where the fees come from. C. Skipped checks were written for more money than was available in the account. D. A skipped check has not been cashed or deposited.

A skipped check has not been cashed or deposited. Since a skipped check has not been cashed or deposited yet, the balance from the bank will be higher than the balance recorded in the check register.

Amy wants to buy a pair of jeans that cost $65. Today the store is offering a straight discount of 25%. Calculate her savings and cost after the discount.

Amy saves $16.25 and pays $48.75 after the discount.

Capital

Capital is the total assets of the borrower, such as savings, investments, valuables, and property. These assets could be used to repay debt if income should become unavailable.

Character

Character is a borrower's reliability and willingness to repay a loan. It is considered doubtful under the following conditions: The borrower has a bad credit history. The borrower declared bankruptcy in the past. The borrower's business failed. The borrower failed to meet family obligations.

Why would a bank charge a fee to noncustomers who use its ATM?

Charging a noncustomer helps pay for the cost of keeping the ATM running and supplied with cash. Customers of the bank already cover the ATM costs with regular fees or by allowing the bank to loan out their money.

*I = P × r × t Matt has $550 in his savings account. He is eager to know how much interest the bank will pay him for the whole year. He knows that the bank pays a 3 percent interest rate.

I = 550 × 0.03 × 1

Anton bought a picnic cooler. His total bill, with tax, was $7.95. He paid 6 percent sales tax. How much did he pay for the cooler alone without the tax?

Let the price of the Cooler before tax = C C x [1 + 6%] =$7.95 C x 1.06 =$7.95 Divide both sides 1.06 C = $7.95 / 1.06 C =$7.50 - Price of the Cooler before 6% tax.

What is the benefit of online banking?

Online banking is convenient. It allows a person to transfer money between accounts or pay bills from home.

What are two dangers of online banking?

Online banking runs the risk of a person's banking information being stolen from his or her computer. This would leave a thief free to empty the person's bank account. Also, the ease of transfers makes it more likely that a person will transfer money from savings to checking where it can be more easily spent.

*Return on investment= (final value- initial value)/initial value x 100 Mrs. Green invested $10,000 in mutual fund for a period of 6 years. At the end of 6 years, she received a total amount of $25,000. Calculate the ROI

ROI= (25,000-10,000)/10,000 x 100= 150 ROI- 150

Two brands of jeans have similar prices and quality. What will happen if the price of brand A falls and price of brand B remains the same?

The demand for brand A will increase.

Variable Interest Rate

The interest rate can increase or decrease depending on economic factors such as government policy changes.

Fixed Interest Rate

The interest rate is fixed and doesn't change over time.

Minimum payment

The smallest amount of your balance that you can pay by the due date and still meet the terms of your card agreement

Balance

The total account debt as of the statement date

Annual Fee

The yearly cost of owning the card

APR (Annual Percentage Rate)

The yearly rate of interest

Jill just made a purchase online. The store that she bought from gave her the option to pay with a check, money order, or credit card. The item will not be shipped until her payment arrives. Why would Jill want to use a credit card instead of a money order or check?

Using her credit card will get the order shipped sooner. Checks and money orders must be sent to the store, but a credit card sends the payment immediately.

Stocks

When you buy stock, you buy a portion of a company. So the outcome of your investment will depend on how the company performs. If the company does well, you will earn a profit on your investment; if it performs badly, you may incur a loss.

Roth IRA

a personal investment plan in which contributions are not tax deductible

traditional IRA

a personal investment plan in which contributions are tax deductible

Capacity

borrower's financial status and ability to repay the debt from regular income. The higher the borrower's total income, the larger the amount of credit the lender gives.

Ray wants to buy an item worth $500. Which option is the most cost-effective? 1-buying the item at list price with a coupon for $10 off 2-buying a membership for $35 and then getting the item at a 15% discount 3-buying the item online at a 10% discount and paying $4 extra for shipping

buying the item online at a 10% discount and paying $4 extra for shipping

Nancy wants to write a check to pay for her books. Match the parts of the check to what Nancy should write. date two hundred and 45/100 amount in words payment for books memo my bookstore amount in words 2/02/09 pay to the order to $200.45

date- 2/02/09 amount in words- two hundred and 45/100 memo- payment for books amount in numbers- $200.45 pay to the order to- my bookstore

hand, or earnest, money

deposit given to the sellers to show intent to complete the transaction

mortgage application fees

fees charged by the lender for processing a loan application and doing a credit check

Gina has to pay monthly installments for a period of 24 months to her car dealer. After 24 months she can either return the car or buy it at its lower resale value. Has she bought the car on a loan or is it on lease?

lease

Match each economic branch to the examples macroeconomics microeconomics decision to buy or lease a car decision to fund schools or universities decision to stock fruits or vegetables decision to buy shoes or clothes

micreconomics-decision to buy or lease a car macroeconomics-decision to fund schools or universities microeconomics-decision to stock fruits or vegetables microeconomics-decision to buy shoes or clothes

Match the needs and wants to their examples needs wants clothes jewelry sports car food

need-clothes want-jewelry want-sports car need-food

interest rate

percentage used to calculate interest

what happens to prices when: when supply exceeds demand when supply equals demand when demand exceeds supply

prices decrease prices are equal prices increase

Ken took out a loan for $1,000 from his bank. At the end of one year, he had to repay it along with 15 percent interest. His interest after one year was $150. Based on this scenario, write down the principal, interest paid, and total amount repaid

principal- 1000 interest- 15 total amount- 1500

Of the 200 students in Tabitha's class, 20 did not attend school on Friday. *rate= amount/base x 100

rate= 20/200 x 100 = 1/10x100= 10% of students absent

mutual funds risk and return

risk- The risk is moderate because the mutual fund invests in many companies. If one investment incurs a loss, it will likely be balanced by another investment that profits. return- Some of the returns come from low-return investments while some come from high-return investments, so the overall return is moderate.

Match the type of discount to an example. discount: straight discount bulk offer buy one get one internet purchase ex: buy camera, no sales tax, shipping fee $5 buy two packs and pay for one buy shirts at a 10% discount buy books worth $699 and get a 10% discount buy 5 cans of sauce and get $1 off

straight discount-buy books worth $699 and get a 10% discount, buy shirts at a 10% discount bulk offer-buy 5 cans of sauce and get $1 off buy one get one-buy two packs and pay for one internet purchase-buy camera, no sales tax, shipping fee $5

time

the amount of time the borrower takes to pay back the borrowed money

portfolio

the collection of your financial investments

interest

the fee a borrower pays for using the lender's money

return

the gain or loss received from an investment

principal

the original amount borrowed or the part of the amount borrowed which remains unpaid (not including interest)

diversification

the technique of reducing investment risk by spreading your money among various investments

risk

the uncertainty about the future benefits of an investment

Forty-year-old Kyle wants to start investing for retirement. He wants to select a personal investment plan that will allow him to withdraw funds without paying penalties and taxes once he turns 59.5. Which retirement plan should he choose?

traditional ira

List four monthly costs that a homeowner needs to pay.

utility fees association fees private mortgage insurance (PMI) title insurance