Finance Flashcards
1
Q
What is income?
A
Money received from work or investments
2
Q
What are deductions?
A
Money taken from the income before it goes into the employees bank account (tax, insurance)
3
Q
What is gross income?
A
Money earned before deductions
4
Q
What is net income?
A
Money earned after deductions
5
Q
What are expenses?
A
Money spent on needs or wants
6
Q
What does the formula A=P(1+r)t represent?
A
Compound interest & appreciation
7
Q
What does the formula A=P(1-r)t represent?
A
Depreciation
8
Q
What does the formula I=Prt represent?
A
Simple interest
9
Q
What does the formula A=P+I represent?
A
Total (with principal & interest)
