Unit 1 & Unit 2
Something not necessary to live, but can improve your quality of life
What is a WANT?
The difference between HOURLY WAGE and ANNUAL SALARY.
hourly wage: the amount of money an employee is paid per hour
annual salary: the amount of money an employee is paid per year
The amount of money a person makes
What is INCOME?
The maximum amount of money a person can borrow.
What is a CREDIT LIMIT?
Define what sales tax is.
Sales tax is an amount of money added to the cost of an item based on a state's sales tax percentage
Something that is necessary to live.
What is a NEED?
How many paychecks will you recieve if you are paid BIWEEKLY?
What is...You are paid 26 times per year (paid every 2 weeks).
Two months per year you will receive 3 paychecks.
The difference between a FIXED EXPENSE and a VARIABLE EXPENSE.
What is
fixed expense: an expense that is regularly scheduled, predicted
variable expense: an expense that is not regularly scheduled, unpredicted
A certificate, either paper or electronic, that discounts an item by a set dollar amount or percentage.
What is a coupon?
Show the percent change formula
% CHANGE = NEW AMOUNT - OLD AMOUNT / OLD AMOUNT . 100
This is a withdrawal from, or a deposit into a bank account.
What is a TRANSACTION?
Lucas gets paid $60,000 per year. Calculate his monthly pay.
What is $5,000 per month.
$60,000/12
The difference between a secured credit card and an unsecured credit card...
secured credit card: a credit card account opened with a refundable deposit
unsecured credit card: a credit card account opened without the need for a deposit
The federal Fair Credit Reporting Act (FCRA) was passed in 1970 and protects your rights to:
• Be told if information in your file has been used against you.
• Know what is in your file and ask for your credit score.
• Dispute incomplete or inaccurate information in your credit report.
• Have inaccurate or outdated information deleted from your credit report.
• Limit access to your file to people without a valid need to see it, including employers.
• Seek damages from violators.
The amount of money added to the purchase of a meal, usually 20%.
What is a Tip or Gratuity?
• Your friend buys 2 pairs of $150 shoes this year.
• You buy 2 pairs of $60 shoes this year.
How much LESS did you send on shoes this year?
What is $180.00
Mr. Alan wants to know how much his net income will be every month if he is paid $1,235.11 biweekly.
What is $2,676.07
($1,235.11*26)/12
Alex's monthly net income is $3,150. He budgets 11% of his monthly income for transportation.
How much money should Alex set aside for this need each month?
What is $346.50?
($3150)(.11) = $346.50
Lizzy has a coupon for PetSmart that is 30% off all pet toys.
What percentage will Lizzy have to pay if she uses the discount?
What is 70%?
100-30=70
70+30=100
The percentages always add to 100%
Mrs. Laura found a pink flamingo breeder and bought one without Mr. Alan knowing.
Her flamingo cost $549.50 and the sales tax was 5.25%. How much money did Mrs. Laura spend?
She spent: $578.35
($549.50)(0.0525 )=$28.85
$549.50 + $28.85=$578.35
AND Mr. Alan fainted.... ;)
Brandon saved $500.00 per month for one year. How much has he saved?
What is $6,000?
Way to go Brandon!
You can estimate the amount of interest your accounts will accrue by using this Simple Interest Formula
What is
I = P•R•T
Al’s credit card has a 24% APR, or 2% monthly interest rate. He currently owes $2,500 on his credit card. He paid the $25 minimum payment this month. How much does he still owe?
What is $2,525
$2,500–$25 = $2,475+$50.00(for the 2% interest)=$2,525
BONUS: What can Al do to pay off the card quicker?
Tim wants a new $20.00 computer game and found the game on sale online with 2 different discounts available.
Should Tim use the $10.00 off coupon OR 10% off purchase sale?
$10 off: $20-$10 = $10 sale price
10% off: ($20)(0.90) = $18 sale price
Here, the $10 off coupon gives a bigger discount.
Mrs. Melissa and a friend go out to eat. The total bill with tip is $37.62. If they split the cost, how much will each of them pay?
You each pay $18.81
$37.62 / 2 = $18.81