Currency

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Simple Interest 100

Business Math
Compound Interest 100 100 100 Numbers 100 100

Sales Tax Unit Pricing 100 100

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1 U.S. Dollar = 6.69 Yuan

Which currency is stronger?

U.S. Dollar

1 U.S. Dollar = 6.69 Yuan

How many Yuan would you get for $10 U.S. Dollars?

10(6.69) = 66.90 Yuan

The Answer is:

Give two examples why it is beneficial for the U.S. to pursue a weak dollar strategy.

1. It is cheaper for other countries to purchase U.S. goods. 2. More demand for U.S. goods = increased demand = more people needed to meet demand = more people employed!!! 3. Export more than you import, the trade deficit decreases. 4. Farmers benefit from comparatively cheaper products. 5. Weak dollar attracts foreign investment = stronger real estate and business investment.

1 U.S. Dollar = 6.69 Yuan

You have 1 Yuan, how many U.S. Dollars is it worth?

1 U.S. Dollar = 6.69 Yuan

1/6.69 = .1497$

1 Yuan = .1497 U.S. Dollars

What type of market is the currency market and when is it open?

The currency market is an AUCTION MARKET and it is open 24 HOURS A DAY

What is the formula for Simple Interest?

SI = P * R * T

You have the following variables, solve for the unknown

SI =
P = $3,000 R= 8%

T = 3 Years

SI = P * R * T
SI = 3,000(.08)(3)

SI = $720

You have the following variables, solve for the unknown SI = $67.34

P=
R= 2%

T = 2Years

SI = P * R * T 67.34 = P(.02)(2) 67.34 = P(.04) 67.34/.04 = P = $1,683.50

You have the following variables, solve for the unknown. Assume a 365 Day Year. SI = $230.45

P = $6,700
R=

T = 220 Days

SI = P * R * T

220/365= .603

230.45 = 6,700R(.603)

230.45 = 4,040.1R
230.45/4,040.1=

R = .057 or 5.7%

You invest $1,500 into a CD. Upon maturity you receive $1,987. You know your interest rate was 5%, but for some reason you have no idea how long you left your money in the account for.

How long was your money invested for?

DAILY DOUBLE

SI = P * R * T
487 = 1,500(.05)T

1,987 1,500 = 487 Interest

487 = 75T
487/75 = T = 6.49 Years

Describe the basic principle of compound interest.

You earn interest upon interest because the interest you earn is reinvested on the principal. This means your principal is always getting bigger and you are always earning more interest

Principal = 10,000
Rate = 8%

Time = 3 Years
Compound Interest = ???

YR 1 10,000(.08) = 800.00 YR 2 10,800(.08) = 864.00 YR 3 11,664(.08) = 933.12 933.12 $2,597.12 $12,597.12

You invest $3,000 in an account at 8% interest for 1 year. The interest is compounded quarterly. How much would you earn in interest at the end of the year?

Q1 Q2 Q3 Q4

3,000 (.02) = 60.00 3,060 (.02) = 61.20 3,121.20(.02) = 62.42 3,183.62(.02) = 63.67 63.67 $247.29 $3,247.29

You invest $5,000 in an account at 4% interest for 1 year. The interest is compounded semi-annually. How much would you earn in interest at the end of the year?
DAILY DOUBLE

SA1 5,000(.02) = SA2 5,100(.02) = 102 $5,202

100.00 102.00 $202.00

You are going to invest $10,000 in an account at 12% interest for 1 year. The interest is compounded weekly. However, after 3 weeks you need the money. Assuming there is no penalty, how much interest did you earn?

.12/52 = .002

W1 10,000 (.002) = W2 10,020 (.002) = W3 10,040.04(.002) = 20.08 $10,060.12

20.00 20.04 20.08 $60.12

Write out the word form of the following

123,439.43

___________________________

123,439.43

One Hundred Twenty Three Thousand Four Hundred Thirty Nine and Forty Three

Round the following numbers to the nearest cent

$45.548 ______ $35.632 ______

$45.548 $35.632

______ = $45.55 ______ = $35.63

Convert the following percents to decimals 3.7% 18.9% _____ _____

3.7% _____ = .037 18.9% _____ = .189

Covert the following decimals to percents 0.0023 _____ 0.000123 _____

0.0023 _____ = .23% 0.000123 _____ = .0123%

Change the following percents into decimals. .078 ____________ .0067 ___________

078 = .00078

.0067 = .000067

Typically, are you supposed to tip on the total or subtotal?

SUBTOTAL

What is the sales tax on a bill of $58.83 in New Jersey?

$58.83(.07) = $4.12

Lisa goes to Best Buy and buys a Wii for $134.65 and also purchases 3 games with it; James Bond $39.96, - Wii Sports - $22.82, - and Mario Kart $25.82. First calculate the sub-total of these items then calculate the tax and total cost for the state listed below.
Sub-Total _____________

Sales Tax amount _____________ Total cost_______________

California (8.25%)

Sub-Total:

$223.25 $18.42

Sales Tax amount:

Total cost:

$241.67

California (8.25%)

A bill for 2 people at a restaurant came to $115.00 before tax. Tax is 7%. Calculate the sales tax amount, tip for average service (15%), and total bill. NO CALCULATORS Sales Tax _____________ Tip
Total bill

_____________
_____________

Sales Tax: $8.05 Tip: $17.25 Total bill: $140.30

Kevin goes to Shoprite to buy gum . Each pack of gum comes in packs of 20 sticks. He sees the following prices and wants to know which is the best buy. A single pack costs $1.50, a ten-pack carton sells for $9.54, 2 ten-pack cartons sell for $15.67, and 2 twenty-pack cartons sell for $34.89. Determine the better buy (show your work).

1 Pack = $1.50
10 Packs = $9.54 20 Packs = $15.67 40 Packs = $34.89 9.54/10 = $.95 Per Pack 15.67/20 = $.78 Per Pack 34.89/40 = $.87 Per Pack

The two ten packs are the cheapest.