Financial Mathematics Flashcards
What is Gross pay?
The full amount paid to an employee before any deductions are made.
What is Net pay?
The amount left after the deductions like income tax, national insurance and pension contributions.
What is profit?
The amount of money made over the expenses. If the amount of money made doesn’t cover the expenses, it is a loss.
What are Direct Debits?
They are set up with companies who need to take flexible amounts of money from your account like energy providers.
What are Standing Orders?
They are like Direct Debits, but they are fixed amounts.
What are savings accounts?
They are accounts with higher levels of interest to give people an incentive to save money.
If you a x money in an account, and the interest rate is a% per year, what is the amount of money in there after n years?
x * (1 + a/100)^n
What is VAT?
It is a tax that is put on items that are bought except for things like food as they are essential. This is therefore deducted from the amount made by the company.
