Payroll
Calculate the FUTA and SUTA Tax for the February paycheck of an employee of yours who earns $6000 per month.
The FUTA Rate is 6.0%
The SUTA Rate for your industry is 5.4%
Recall the FUTA cap is $7000 per calendar year.
SUTA Tax: $54
FUTA Tax: $6
Calculate the interest on a simple interest loan of $140,000 for 2.5 years with 14% interest.
$49,000
How much money will you have in 5 years if you deposit $8500 into an investment account that pays 10% interest compounded quarterly.
$13,928.24
Ignore
$7456.96
Find the effective rate (annual percentage yield) for a savings account with a nominal rate of 8% which is compounded monthly.
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8.299951%
A salesman gets paid via the following variable commissions schedule based on net sales
$0-$500: 6% commission
$500-$700: 10% commission
Over $700: 20% commission
Calculate their gross pay if they sell $1000 worth of merchandise.
$110
How much would you have to deposit into an account earning exact simple interest of 4% for 45 days in order to earn $40 in interest?
$8111.11
The stock market is expected to have an average return of 6% in the next 2 years.
Estimate the lump sum you would need to deposit today into a stock market account whose interest is computed monthly to accumulate $50,000 in 2 years time.
$44359.28
A company wants to set up an investment fund to pay for maintenance expenses.
They estimate that maintenance expenses usually come to about $578 paid out at the end of every month.
The company investment fund returns a 12% nominal interest rate and compounds monthly.
How much does this company need to invest in the fund so that they don't have to worry about maintenance expenses for the next year?
$6505.44
A company borrows $100,000 for 90 days to buy pumpkins using a simple discount note with an ordinary interest rate of 5%.
What is the effective interest rate of this loan?
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5.06329%
Calculate the FICA taxes for the month of November for a married employee who files jointly with their spouse (who makes $0), and makes $240,000 per year.
Recall the medicare rate is 1.45%.
Social Security Tax: $0
Medicare Tax: $290
Calculate the rate on a simple promissory note issued for $143,556 where $153,226 was paid back after 5 months.
16.17%
Calculate the n and the i for a loan with interest compounded weekly with an interest rate of 13% and a period of 2 years.
i = 0.25%
n = 104
How much interest is earned on a periodic investment of $50 put into an account at the beginning of every quarter for 6 years if the account earns quarterly compounded interest of 8%?
$351.52
Find the effective interest rate on a 6 month loan of $10,000 for which $14,000 is paid back.
80%
Find the federal income tax withholding for a weekly paycheck, for an employee who was hired in 2017, filing married, with 3 withholding allowances, and with an annual salary of $54,600.
*You need to google the correct form 15T for this question.
$48
Calculate the proceeds and the effective rate for a simple discount note of $5000 at a rate of 8% for 90 days.
Proceeds: $4900
Effective Rate: 8.163%
Choose an investment strategy for your inheritance of $5000. Suppose you're withdrawing your investment after 4 years.
You could invest in a high-yield savings account with 4.5% interest compounded semi-annually.
Or you could invest in a simple promissory certificate with a rate of 5%.
$5974.16
vs
$6000
The certificate is better!
Find the periodic payment amount that you would need to contribute at the end of every month to an account with quarterly compound interest of 4% to discharge $30,000 worth of bonds in 4 years.
$1,738.34 every quarter.
Credit cards often compound interest daily.
The Visa Mission Lane card has an APR of 23% compounded daily.
If you let your card maintain a balance of $1000 for 1 month, calculate the amount of interest you will pay
Assume a 365 day year and a 31 day month.
$101.93
Use the provided Form W4 and Form 15T to calculate the employee's net pay.
Net Pay: $4260.29
Gross Pay: 5450
FIT: 503
SIT: 269.78
MC: 79.03
SS: 337.9
Joey takes out a simple interest loan of $4000 for 9 months at 8%. He makes 2 partial payments, one for $540 after 4 months, and another for $900 after 7 months.
Calculate the final amount Joey will need to pay off the loan at the end of the loan term.
$2774.51
A company issues some bonds that they want to discharge in 3 years time.
If the bonds total $20,000 how much money do they need to invest now (as a lump sum) in an account earning 4% quarterly compounding interest to ensure they can cover the bonds?
$17748.98
!!!TRIPLE POINTS!!!
Suppose you retire in 2 years and you expect to die about 3 years after retirement. You need to withdraw about $500 at the beginning of each month for income during retirement.
1. Find the deposit amount you would need in your account at retirement to be able to cover these $500 payments for 3 years if your account has 12% interest compounded monthly.
2. Find the sinking fund payment you would need to be contributing during the 2 years at the end of each month (in the same account) until retirement order to have the deposit amount above
1. $15204.29
2. $563.68
Calculate the Social security and medicare taxes paid by a single person who makes $1,000,000 per year in wages.
SS: $10,918.20
MC: $21,700.00