Budgets
Jason loves video games. With tax, he spends about $76 each month on games. He also subscribes to two gamer magazines, each of which costs him about $40 per year. How much is Jason spending on video gaming each year?
$992
Suppose that you invest $900 in an account that earns simple interest at an APR of 5.7%. Determine the accumulated balance after eight years.
$1310.40
Consider a student loan of $8000 with an APR of 6% for 8 years. Find the monthly payment
$105.13
A single taxpayer who itemizes deductions is in the 28% marginal tax bracket. How much will his tax bill be reduced if he qualifies for a $1300 tax credit?
$1300
Which of the following is not considered a mandatory outlay in the US Federal Budget:
a. National Defense
b. Medicare
c. Interest on the debt
a. National Defense
Compute the annual cost of each of the following expenses: $16 a week on soft drinks; $170 per month on renter’s insurance. Complete the sentence: On an annual basis, the first set of expenses is % of the second set of expenses.
40.8
Suppose that you invest $12,000 in an account that earns interest at an APR of 4.1%, compounded annually. Determine the accumulated balance after 6 years.
$15,271.64
Consider a student loan of $8000 with an APR of 6% for 8 years. Find the total amount paid on the loan
$10,092.48
Diana is married, but she and her husband filed separate income taxes in 2013. She earned wages of $32,000, and she received $500 in interest from savings accounts. She also contributed $1600 to a tax deferred retirement plan, and had itemized deductions totaling $7220. Find her gross income.
$32,500
Debt is the total amount of money owed to lenders, which may result from accumulating _______________ over many years
deficits
Find the net monthly cash flow for a person who has a monthly income of 1,600 and pays 700 for rent, 100 for utilities, 200 for groceries, and puts 320 in savings
280
Suppose that you invest $2600 in an account that earns interest at an APR of 6.2%, compounded continuously. Determine the accumulated balance after 7 years.
$4012.89
Suppose you have a balance of $4300 on your credit card, which charges an APR of 15%. Assume that you charge no additional expenses to the card and you want to pay off the balance in one year of monthly payments. What is the total amount of interest you will end up paying?
$357.32
Diana is married, but she and her husband filed separate income taxes in 2013. She earned wages of $32,000, and she received $500 in interest from savings accounts. She also contributed $1600 to a tax deferred retirement plan, and had itemized deductions totaling $7220. Find her taxable income.
$19,780
Suppose that the federal debt in 2020 is $22.5 trillion. If interest rates remain at the 2016 level of 1.7% find the annual interest payment on the debt
$383 Billion
Sandy’s automobile insurance policy has an annual deductible of $500. Her bill for a recent collision repair, which was her first insurance claim of the year, was $850. How much did Sandy pay out of pocket for the repair?
$500
Suppose you set up a new IRA (individual retirement account) that pays an APR of 7%, compounded monthly. If you contribute $160 at the end of each month for 17 years, how much will the IRA contain at the end of that time?
$62,420.19
Suppose you have just obtained a 30-year home mortgage in the amount of $216,000 at an APR of 6.5%. Find the required monthly payment.
$1365.27
Denise is in the 35% tax bracket and claims the standard deduction. How much will her tax bill be reduced if she makes a $3788 contribution to charity?
$0
If she takes the standard deduction, she cannot itemize deductions such as charitable donations
In 2016, individual taxes made up about 49% of total government receipts of about $3.3 trillion. Suppose the government needed to raise an additional $600 billion through individual income taxes. How much would taxes have to increase?
38%
Thomas receives a bill for $2700 for an out-patient procedure at a local clinic. His health insurance has a $1500 deductible and a $200 co-payment for the rpocedure. The insurance company pays 80% of the remaining balance. How much of the cost does the insurance company cover?
$800
Suppose you want your daughter’s college fund to contain $120,000 after 16 years. If you can get an APR of 6%, compounded monthly, how much should you deposit at the end of each month?
$373.73
Suppose you have just obtained a 30-year home mortgage in the amount of $216,000 at an APR of 6.5%. Find the monthly payment that you would need to make in order to pay off the loan in 20 years.
$1610.44
Use the marginal tax chart found in your study guide for the following question:
Suppose a married couple with no dependents filed jointly and had a taxable income of $48,700 in 2013. How much income tax did they pay?
$6412.50
In a recent year, the total receipts for the US federal government were $2154 billion. The total outlays were $2472 billion. The deficit was $318 billion. What would the deficit have been, if there had been a 2% increase in total receipts?
$275 billion