# Actus Potentia Releases Arithmetic Software with Lessons on Smart Living

## Actus Potentia’s Arithmetic software (http://www.actuspotentia.com/Arithmetic.shtml) contains lessons on money, percentage, simple and compound interest, mortgage and credit card payments, income tax, and family budget. The arithmetical foundation of these topics is essential for smart living.

Arithmetic Software from Actus Potentia

Arithmetic skills are necessary for shopping, buying a home and paying a mortgage, making credit card payments, paying taxes, doing a family budget, making investments, and deciding which deals are too good to be true. Actus Potentia’s arithmetic software helps build these skills at an early stage in sixth or seventh grade. The arithmetic software has a large bank of word problems that challenge students to analyze real-life situations involving money, percentages, simple and compound interest, mortgage and credit card payments, income tax, and expenses and savings in a family budget.

The problems on money introduce the concepts of loss and profit, fine and penalty, unit price and cost calculation, comparison of costs in shopping, and sales and discount.

The problems on percentage deal with the concepts of percent increase and decrease, savings and premiums due to percent increase and decrease, and predicting future values of quantities due to percent increase and decrease.

The simple and compound interest problems deal with four quantities, namely, beginning and ending balances, time period, and interest rate. Students solve four kinds of problems where any three out of the four quantities are given, and they find the fourth quantity. Students can determine the future value of an investment after a given number of years when the amount of the investment and the interest rate are given. Students can also determine the amount of required investment for a given time period, interest rate, and desired ending balance. Students learn how compounding makes their investment grow at a faster rate.

Problems on mortgages and credit cards show the impact of interest rates on the amount of a monthly payment. Students can also calculate the total interest paid over the entire period of the loan.

Problems on family budget show how take home pay is reduced due to taxes, Medicare, and Medicaid. Students learn about the contributions to retirement accounts and consequent tax savings. Students also become aware of various kinds of expenses in running a household and they can examine various expense scenarios to manage their family budget.

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Ambar Mitra