Pay & Taxes
Lola makes $11/hr. She gets time and a half for overtime. If she worked 50 hours last week, what was her gross pay?
What is $605?
The charge for the privilege of borrowing money, typically expressed as a percentage rate.
What is interest?
These two types of accounts, maintained by commercial banks and credit unions, may or may not have associated fees, pay interest, or require minimum balances. Deposits and withdrawals are made directly from such accounts, often via bank tellers and ATMs.
What are checking and savings accounts?
A personal budget should account for these two line items.
What is income (revenue) and expenditure (expenses)?
A United States federal tax form issued by employers stating how much an employee was paid in a year. It is submitted to the IRS along with your tax return.
What is a W-2?
If Jim's gross pay is $1300, how much of his check is taken out for social security?
What is $80.60?
This interest rate, which factors in borrowing fees, must be divulged by lenders so that you may more easily compare rates.
What is an annual percentage rate (APR)?
This is the income received prior to taxes and deductions.
What is gross pay?
Currently, it amounts to $7.25/hr.
What is the (federal) minimum wage?
Toni makes $82000 a year. How much is taken out of her monthly check for medicare?
What is $99.08?
A record (accompanied by a rating) of a consumer's ability to repay debts and demonstrated responsibility in repaying debts.
What is credit history (or credit report)?
This is income after taxes and deductions.
What is net pay?
This tax withholding form is completed at the time of employment so that your employer can withhold the correct federal income tax from your pay. Tax deductions or allowances are made for children and other dependents.
What is a W-4?
Jonas makes 5200/month gross pay. How much after tax pay does he get monthly if he pays 18% federal tax, social security, medicare, and 3% state tax?
What is $3710.20?
Something pledged as security for repayment of a loan (e.g. a house or car), to be forfeited in the event of a default.
What is collateral?
Interest calculated on the initial amount deposited or loaned and also on the accumulated interest of previous periods of a deposit or loan. It can be thought of as “interest on interest,” and will make a deposit or loan grow at a faster rate than simple interest.
What is compound(ed) interest?
These types of expenses remain unchanged from period to period. Examples include mortgage or rent, insurance, and, often, utilities.
What are fixed expenses?
This is maintained, either electronically or by hand, to account for deposits, withdrawals and other line items.
What is a bank register (or statement)?
The Federal Income Contributions Act (FICA) requires that you pay these two "payroll taxes" (for retirement and healthcare)
What are Social Security and Medicare taxes?
In general, the longer the term of the loan, the higher this is.
What is the interest rate?
This "rule" is a simple, and relatively accurate way, to calculate (divide by rate) the amount of time it will take to double the value of an investment at a specified rate of return.
What is the "Rule of 72"?
These types of expenses fluctuate or change from period to period. Examples include personal entertainment or travel costs, and other discretionary items.
What are variable expenses?
This insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
What is FDIC (Federal Deposit Insurance Corporation) insurance?