Money Math Toolkit Resource Sheet
Consumer Math IA Exam Resource
Formulas & Financial Logic
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1. Car Loan Calculations
Core Formulas
Principal (P)
\(P = \text{Total Cost} - \text{Down Pmt}\)
Monthly Rate (r)
\(r = \text{APR} \div 100 \div 12\)
Loan Months (n)
\(n = \text{Years} \times 12\)
Monthly Payment (M)
\(M = (P \div n) \times (1 + r)\)
• First Step: Always find Principal (\(P\)) by subtracting the down payment.
• Base Monthly Amount: \(P \div n\) (Monthly cost before interest).
Example Calculation
$20,400 Principal, 60 Months, 0.005 monthly rate (\(r\)).
\(M = (20,400 \div 60) \times (1 + 0.005)\)
\(M = 340 \times 1.005\)
\(M = \$341.70\)
2. Ownership Budgeting
Total Monthly Cost
Car Pmt + Insurance + Gas
Total Annual Cost
Monthly Total × 12
Check Units! If a cost is already "per year" (reg/maint), add it at the very end. Only multiply "per month" costs by 12.
3. Healthcare Logic
Coinsurance Payment
Remaining Bill × Coinsurance %
Billing Steps
- Pay the Deductible first.
- Subtract Deductible from Bill.
- Apply % share to balance.
- Add Co-pay flat visit fee.
Essential Vocabulary
Premium: Fixed monthly fee you pay for insurance regardless of medical visits.
Deductible: Specific amount you pay 100% out-of-pocket before insurance starts.
Out-of-Pocket: The total money the patient pays from their own wallet.
Decision Reasoning & Logic
Monthly Pmt Factors
Higher APR: Higher Pmt
Shorter Term: Higher Pmt
Lower Down Pmt: Higher Pmt
Insurance Rule
Low Deductible = High Premium
High Deductible = Low Premium
Pick a low deductible if you have no savings for a bill.
Buy vs. Lease
Buy: Keeping car for 5-6+ years.
Lease: Short term (3 yrs), lowest pay, or moving soon.
End of Reference Guide • Ink Efficient Print Edition
