Definition
Net Worth
The value of someone's finances.
List 2 things that may affect your budget.
Dependents
Spouse
Where you live
Type of Job / Career
Medical / Disabilities
What is the formula for simple interest?
I=prt
Which one is the Social Security tax?
A. money used to assist the needy and disabled
B. money used for medical needs for the elderly
C. money used for military defense, education, etc.
B
If Sam has owes $20,305 and owns $157,562; which one is his liability?
$20,305
What type of tax is used for military defense, education, etc?
Federal income tax
-OR-
Progressive tax
Identify which one is a variable and fixed expense.
Rent
Food
Utilities
Car Payment
Gas
Rent - Fixed
Food - Variable
Utilities - Variable
Car Payment - Fixed
Loans - Fixed
What is the formula for compound interest?
A=p(1+r)^t
True / False
1. Some states do not have state taxes.
2. If you do not make enough, you don't have to pay federal taxes.
3. You can choose which taxes you pay.
1. True
2. True
3. False
What is the formula for net worth?
Assests-Liabilities=Net Worth
Match up the definitions.
Gross Income
Net Income
Money after tax
Money before tax
Gross Income is the money before tax.
Net Income is the money after tax.
What does "Have a rainy day fund" mean?
To have an emergency savings account in case of unexpected events such as a flat tire, broken window, or bad health.
What does the variables stand for in simple interest fourmula and in compund interest formula?
I
P
R
T
A
I - simple interest
P - principle
R - rate
T - time
A- compound interest
How much medicare tax is Ashley paying for if she earns an annual salary of 57,600 and the medicare tax rate is 1%?
$576
Liability or Asset?
Savings Account:
Student Loan:
Paid Off House:
Savings Account: Asset
Student Loan: Liability
Paid Off House: Asset
What is budgeting?
A plan that is used to determine how your money will be used.
Ryan would like to save 10% of his retirement. He earns $3,000 monthly. How much will he be saving for his retirement?
$300
What is the simple interest of a deposit of $30,000 at a 2% rate over 10 years?
$6,000
If the social security tax is 6%, how much will Phillip have to pay if he has a monthly income of $4,650?
$279
Libby is calculating her net worth. her assets have a total of $87,545 and her liabilities are $32,158. What is the value of Libby's net worth?
$55,387
Which definition belongs to which?
Simple Interest
Compound Interest
Interest earned only on the principle.
Interest earned on the principle plus the previously earned interest.
Simple Interest - Interest earned only on the principle.
Compound Interest - Interest earned on the principle plus the previously earned interest.
If you earn $2,700 monthly and you want to save 1% for gas and 16% for your car payment, how much money will you be spending on transportation?
$459
What is the compound interest of a $14,700 deposit at a 3% rate over one year?
$15,141 is the total account value.
$441 is the interest that is earned on the account.
Sarah earns $37,600 annually. She will pay a 1% medicare tax, which is $376. She will also pay $2256 in social security tax, a 6% rate. How much will be her net income?
$34,968
What is Adam's net worth?
House: $75,400
Car: $3,200
Checking Account: $8,420
Credit Card Debit: -$18,900
Student Loan: -$24,980
$43,140