behavioral finance
What is FOMO?
Fear of missing out
The Green family goes out to dinner on Friday night. The bill totals $104.45. Mr. Green wants to leave a 20% tip.
What is the tip amount he should leave?
104.45 x .2 = 20.89
What is the difference between net pay and gross pay?
net pay = take home pay (after taxes)
Margo makes a deposit at an ATM. She has a paycheck for $375.42 and a refund check for $24.95. She would like to receive $45.00 in cash and deposit the remaining amount. What is her total deposit?
($375.42 + $24.95 - $45.00) = $355.37
.39 cents
Investments of time, effort and money that cannot be recovered are…
Sunk Cost
Richard is a network administrator for a large law firm. His annual salary is $65,590. What is his monthly salary?
$65,590 / 12 = $5,465.83
Bob receives a 7.5% commission for selling cleaning supplies. What is his commission on sales of $104,589?
$7,844.17
Terrance deposited a check for $299.45 and a check for $299.52. He received $42.00 in cash. What was his total deposit?
($299.45 + $299.52 - $42.00) = $556.97
Grace bought a shirt for $9.99, pants for $19.99 and socks for $3.99. The state sales tax is 4% What is the total purchase?
$33.97 + 1.36 = $35.33
What is cognitive bias?
An error in the way we think that can influence our decisions
Andre was paid a bi-weekly salary of $1,230. Now he is paid monthly. What is Andre’s new salary per month?
1230 x 26 = 31,980
31,980 / 12 = $2,665
Barbra has a gross weekly income of $721.15. How much is deducted from her paycheck for this week for Social Security and Medicare?
M - $10.46 SS - $44.71 Total - $55.17
Joanna puts $5,000 into an account with 3% simple interest for 2 years. How much does she make in simple interest?
$300
Betty bought $60.78 worth of goods at Target. She paid with $100 cash. What is her change?
$39.22
What is overconfidence bias?
Having short term success and believing you are an expert
Terry worked from 7:00 AM to 10:45 AM and from 12:30 PM to 3:15 PM at the chocolate shop. Find the total hours for the day.
Assume she worked 5 days this week. How many total hours for the week?
Izzy has $15.60 deducted weekly for family medical insurance. Her employer pays 90% of the cost. What is the annual premium?
15.60 x 52 = 811.20
811.2/.1 = $8,112
Rick invests $500 into an account making 4% interest compounded semi annually. How much money does he have in the account after one year?
$520.20
Lola has a 20% off coupon and is purchasing a TV that has a regular price of $358.00. What is the sale price? What is the sale price using the percent paid method?
$286.40
loss aversion
West Herr pays its salespeople on a salary plus commission basis. West Herr pays a 4% commission on sales over a weekly quota. If an employee had $60,000 of sales and the quota was $25,000. What is the sales over the quota and the commission made on that amount?
60,000 - 25,000 = 35,000 x .04 = $1,400
Carla has a total of $597.25 deducted from her monthly paycheck for Social Security and Medicare taxes. What is her monthly salary?
$7,807
Greg invests $2,000 into an account with 5% interest compounded quarterly. Find the amount of money in his account after one year
2075.94+25.99= $2101.93
Bob is shopping for a new car. The regular price is $5,800. It is on sale for $4,060. What % off is the car?
30%