Financial Calculations

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International finance is important for determining exchange rates, comparing inflation rates, investing in foreign debt securities, ascertaining economic conditions in other countries and investing in foreign markets, according to For Dummies. The International Financial Reporting Standards (IFRS), adopted by more than 120 countries as of April 2011, are an important backbone of international finance and offer numerous benefits, according to Investopedia.

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  • How do you calculate a percentage of a dollar?

    Q: How do you calculate a percentage of a dollar?

    A: To calculate a percentage of $1.00, treat it as 100 pennies. The percentage sought is equal to the same number in cents. According to Math Is Fun, "percent" is a number per 100, so treating $1.00 as a 100 pennies makes the math simple.
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  • What age group spends the most money?

    Q: What age group spends the most money?

    A: According to The Daily Beast, Americans between the ages of 50 and 60 years old spend the most money, about 74 percent more than Americans aged 18 to 25 in 2010. Each group divides its expenditures in a different way.
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  • What is a marginal revenue function?

    Q: What is a marginal revenue function?

    A: The marginal revenue function in economics refers to the increase in revenue resulting from the sale of one additional unit of output. Marginal revenue is calculated by dividing the change in revenue by the change in output. While the marginal revenue function can remain constant over a specific level of output, it follows the law of diminishing returns. As a result, marginal revenue tapers off as output increases.
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  • How do you calculate sales revenue?

    Q: How do you calculate sales revenue?

    A: To calculate sales revenue, verify the prices of the units and the number of units sold. Multiply the selling price by the number of units sold, and add the revenue for each unit together.
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  • How do you calculate interest expense?

    Q: How do you calculate interest expense?

    A: Interest expense is calculated as the interest rate multiplied by the amount of the outstanding principal of the debt. Defined by Investopedia, interest expense is the cost incurred by an entity on borrowed funds.
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  • How much do teens spend on clothes per year?

    Q: How much do teens spend on clothes per year?

    A: According to Statistic Brain, as of 2014, total spending by American youths aged 13 to 19 years is approximately $258.7 billion annually. According to Business Insider, teens spend 40 percent of their money on clothing. If that's correct, it translates to $103.48 billion spent by teens annually for clothes.
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  • What does a financial analyst do?

    Q: What does a financial analyst do?

    A: Investopedia explains that a financial analyst gathers data and analyzes the financial foundation of a business or industry. The daily tasks of a financial analyst depend on his level of experience. Most junior analysts are responsible for gathering data, while senior analysts are responsible for making connections in the industry. Junior analysts are promoted to senior analysts after a minimum of three years in the industry.
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  • What is the formula for total fixed cost?

    Q: What is the formula for total fixed cost?

    A: The formula for total fixed cost is fixed costs plus variable costs multiplied by quantity equals total cost, or FC +VC(Q)=TC, according to Education Portal. Fixed costs are costs that do not change based on aspects such as production levels, where variable costs change based on production.
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  • How do you calculate late fees?

    Q: How do you calculate late fees?

    A: The Bureau of the Fiscal Service, a division of the U.S. Department of the Treasury, provides a monthly compounding interest calculator. This online calculator allows people to automatically determine the amount of monthly compounding interest owed on payments made after the payment due date.
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  • How do you calculate food cost percentage?

    Q: How do you calculate food cost percentage?

    A: StarChefs explains that food cost percentage is figured by taking the total beginning inventory cost plus purchases minus the ending inventory costs; then dividing that number by food sales.
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  • What is the importance of financial accounting?

    Q: What is the importance of financial accounting?

    A: Financial accounting is important because it provides an organization's stakeholders with business statements, allowing them to know if the organization is making or losing money. This information is essential in determining if a company is able to maintain profitability, according to Accounting-Careers-Guide.com.
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  • What is a petty cash transaction?

    Q: What is a petty cash transaction?

    A: Petty cash transactions are small business expenses that are paid out in cash, according to About.com. Frequently a company has a small amount of cash on hand that is used to pay for small purchases or reimburse employees for company purchases made out of pocket. Petty cash expenditures are recorded in the company's financial records to keep track of how the money is utilized.
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  • What is profit maximization?

    Q: What is profit maximization?

    A: In economics, profit maximization refers to the process by which a business assesses the price and output of goods in order to ensure the greatest profit. During the assessment, businesses will determine the expense of fixed and variable costs during production in order to ascertain financial viability. There are two main ways a business achieves this total revenue-total cost and marginal revenue-marginal cost.
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  • What is the definition of "compound interest"?

    Q: What is the definition of "compound interest"?

    A: Compound interest is a financial term used to describe the process where the interest earned on a principal investment over a set period of time is added to the principal amount. The interest payable for the following periods is recalculated on the sum of the original investment and the previous interest earned. The word "compound" refers to the magnified effect that this method has on an investment's growth potential.
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  • What is the formula for total revenue?

    Q: What is the formula for total revenue?

    A: According to AmosWeb, total revenue is calculated by multiplying the price received from the product times the quantity of the product sold at that price. Total revenue is usually depicted as a total revenue curve with it being directly related to marginal revenue and average revenue.
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  • How do I calculate how much I make an hour?

    Q: How do I calculate how much I make an hour?

    A: The hourly rate of pay is calculated by dividing the gross salary for a specific period by the number of hours worked in that same period. Gross salary is the amount earned prior to any deductions.
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  • What is the formula for total profit?

    Q: What is the formula for total profit?

    A: The formula for total profit, or net profit, is total revenue in a given period minus total costs in a given period. If a business generates $250,000 in total revenue in a quarter, but has $215,000 in total costs, its total profit for the period is $35,000.
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  • What is a home construction cost calculator?

    Q: What is a home construction cost calculator?

    A: A home construction cost calculator is a calculator used to estimate the cost of constructing a new house. The calculator helps a person to determine how big the house, the kitchen and the rooms should be. It also asks a person what kind of finishing he wants around the house.
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  • What are the remedies to measure and control inflation?

    Q: What are the remedies to measure and control inflation?

    A: The rate of inflation is a measure of the Consumer Price Index, according to Saint Joseph’s College. Inflation control is a part of the monetary policy set by the Federal Reserve that involves the fluctuation of interest rates and the selling of bonds through the U.S. Treasury.
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  • What is the inventory turnover ratio?

    Q: What is the inventory turnover ratio?

    A: The inventory turnover ratio is a formula that displays how many times inventory is replaced over a period of time by dividing cost of goods sold over average inventory. This ratio is used to identify the efficiency of inventory management within a company.
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  • What is the importance of international finance?

    Q: What is the importance of international finance?

    A: International finance is important for determining exchange rates, comparing inflation rates, investing in foreign debt securities, ascertaining economic conditions in other countries and investing in foreign markets, according to For Dummies. The International Financial Reporting Standards (IFRS), adopted by more than 120 countries as of April 2011, are an important backbone of international finance and offer numerous benefits, according to Investopedia.
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