Simple & Compound Interest Questions and Answers

Required information The following information applies to the questions displayed below For 2023 Sherri has a short term loss of 2 870 and a long term loss of 7 200 b How much loss will Sherri carry over to 2024 and what is the character of the loss carryover Long term capital loss

Assume a tax rate of 6 2 on 142 800 for Social Security and 1 45 for Medicare No one will reach the maximum for FICA Complete the following payroll register Use the percentage method to calculate FIT for this weekly period Use Table 9 1 Note Do not round intermediate calculations and round your final answers to the nearest cent FICA Employee Marital status Gross pay FIT Social Security Medicare Net pay Pat Brown S 2 800 2 349 15 173 60 40 60 237 65

For a given location the daily number of sunlight hours fluctuates throughout the year Suppose that the number of sunlight hours is given by the following function D t 12 6 1 cos 2 365 In this equation D t is the number of hours of sunlight in a day and t is the number of days after June 21st Find the following If necessary round to the nearest hundredth Amplitude of D hours of sunlight in a day Maximum number of hours of sunlight in a day Period of D days X

A local Dunkin Donuts makes blueberry muffins that cost 69 each Past experience shows that 15 of the muffins will spoil and have to be discarded Assuming that this shop wants a 30 markup based on cost and produces 200 muffins each muffin should sell for 90 91 1 50 1 06 None of these

Arley s Bakery makes fat free cookies that cost 1 60 each Arley expects 40 of the cookies to fall apart and be discarded Arley wants a 35 markup on cost and produces 200 cookies What should Arley price each cookie Note Round your answer to the nearest cent Price per cookie x This is a numeric cell so please

2 Daniel borrowed 50 000 with a promise to repay the loan over a period of 10 years in monthly installments What is the amount of the monthly payment if the nominal annual interest rate is 12 compounded monthly

4 a Coles Home Solutions policy is to charge 1 25 interest each month on unpaid credit balances What is the nominal interest rate that Coles is charging What is the effective annual interest rate

Yolanda borrowed 20 000 from her parents to start a bakery She paid them back 25 500 What was the simple rate of interest on this loan if she repaid the loan after a 4 years b 6 years c 8 years

Front Range Cabinet Distributors in Colorado Springs Colorado sells to its contractors with a 46 markup om cost If the selling price to the contractors is 9 532 what is the original cost to Front Range Cabinet Distributors Note Round your answer to the nearest cent Based on cost

7 The Pretzel Co purchased a new machine for their factory today The machine requires maintenance at the following rates for the first 6 years Year Maintenance Cost 0 0 1 0 2 1500 3 1750 4 1900 5 6 2300 2500 If the bank pays interest at 9 how much must Pretzel Co set aside today to meet the maintenance costs for the next 6 years

Consider the circles shown to the right Assume one circle is selected at random and each circle is equally likely to be selected Determine the probability of selecting a number less than 5 given that the number is less than 6 1 3 6 The probability of selecting a number less than 5 given that the number is less than 6 is Type an integer or a simplified fraction

Complete the following Note Do not round intermediate calculations Round your final answers to the nearest cent Amount of invoice 040 Terms Invoice date Answer is complete but not entirely correct Actual partial payment made Date of partial payment Amount of payment to be credited Balance outstanding

Required information The following information applies to the questions displayed below Lionel is an unmarried law student at State University Law School a qualified educational institution This year Lionel borrowed 32 500 from County Bank and paid interest of 1 950 Lionel used the loan proceeds to pay his law school tuition Calculate the amounts Lionel can deduct for interest on higher education loans under the following circumstances Note Leave no answer blank Enter zero if applicable b Lionel s AGI before deducting interest on higher education loans is 84 000 Interest deduction

2 NeverReady Inc manufacturers thousands of batteries each hour When the manufacturing process is working properly the batteries have lifetimes that follow a slightly right skewed distribution with u 9 hours A quality control supervisor selects a simple random sample of batteries every hour and measures the lifetime of each If she is convinced that the mean lifetime of all batteries produced tha hour is less than 9 hours at the 5 significance level then all those batteries are discarded The sample for a specific hour gives the statistics below Should all the batteries produced this hour be discarded Support your answer with an appropriate hypothesis test 4 points Min 5 6 Max 8 6 8 9 Sx 0 21 n 30 Median 8 8

Determine whether the following statement is true or false If you deposit 12 000 in an in investment account today it can double in value to 24 000 in just a couple decades even at a relatively low interest rate 4 False True

Determine whether the following statement is true or false 5E 1 2 3 15 True False

The current gasoline price is 3 89 per gallon and it is projected to increase next year by 3 5 the following year 7 the third year What is the average inflation rate for the projected gasoline price for the next three years The average inflation rate is Round to two decimal places

The following data indicate the median price of unleaded gasoline during the last 20 years for California residents Click on the following icon in order to copy its contents into a spreadsheet Period 2001 2021 The price index inBound to Assuming that the base period price index 100 is 2001 compute the price index for the unleaded gasoline price for the year 2021 Price 1 05 3 58 ACCED

Irse Packet on marginal analysis The daily cost in dollars of producing LG ultra high definition televisions is given by C x 7x3 30x 40x 900 where x denotes the number of thousands of televisions produced in a day a Compute the average cost function C x C x b Compute the marginal average cost function C x C x c Using the marginal average cost function C x approximate the marginal average cost when 3000 televisions have been

Marginal Analysis Elasticity Course Packet on marginal analysis The weekly demand for Math Wars The Force Multiplies video games is given by p 560 X 7 3500 Video where x is the number of thousands of video games produced and sold and p is in dollars Using the Marginal Revenue function R x approximate the marginal revenue when 14 000 video game have been produced and sold dollars

Marginal Analysis Elasticity Course Packet on marginal analysis Let C x represent the cost and R x the revenue in dollars associated with producing and selling x units of Dr Little s Winning at Love A Strategy Guide to the Game of Tennis If C 30 63 am R 30 63 which one of the following statements is true O Since marginal cost equals marginal revenue total profits are negative when 30 items have been sold O Producing and selling the 31st item vill have little to no effect on total profits O Since marginal cost equals marginal revenue total profits are positive when 30 items have been sold O Producing and selling the 31st item will decrease total profits O Producing and selling the 31st item will increase total profits

17 Curtis invests 225 000 in a city of Athens bond that pays 4 25 percent interest Alternatively Curtis could have invested the 225 000 in a bond recently issued by Initech Incorporated that pays 5 50 percent interest with similar risk as the city of Athens bond Assume that Curtis s marginal tax rate is 24 percent If Curtis invested in the Initech Incorporated bonds what would be his after tax rate of return from this investment 00 59 09 Multiple Choice 2 66 percent 4 25 percent 4 18 percent 0 86 percent

25 00 58 20 Leonardo who is married but files separately earns 70 000 of taxable income He also has 19 200 in city of Tulsa bonds His wife Theresa earns 54 200 of taxable income How much money would Leonardo and Theresa save if they file jointly instead of separately for 2023 Use tax rate schedule Multiple Choice Nothing 223 20 668 85 10 660 00 Mens s

3 Assume that John s marginal tax rate is 17 percent If a city of Austin bond pays 7 8 percent interest what interest rate would a corporate bond have to offer for John to be indifferent between the two bonds 01 58 51 Multiple Choice 22 10 percent 9 40 percent 7 80 percent 6 47 percent None of the choices are correct

7 Curtis invests 650 000 in a city of Athens bond that pays 8 75 percent interest Alternatively Curtis could have invested the 650 000 in a bond recently issued by Initech Incorporated that pays 10 00 percent interest with similar risk as the city of Athens bond Assume that Curtis s marginal tax rate is 24 percent How much explicit tax would Curtis incur on interest earned on the Initech Incorporated bond 01 57 49 Multiple Choice 49 800 00 15 600 00 13 650 00 42 525 00

5 Jackson has the choice to invest in city of Mitchell bonds or Sundial Incorporated corporate bonds that pay 7 4 percent interest Jackson is a single taxpayer who earns 70 000 annually Assume that the city of Mitchell bonds and the Sundial Incorporated bonds have similar risk What interest rate would the city of Mitchell have to pay in order to make Jackson indifferent between investing in the city of Mitchell and the Sundial Incorporated bonds for 2023 Use tax rate schedule 01 58 13 Multiple Choice 5 77 percent 7 40 percent 5 97 percent 5 17 percent None of the choices are correct

Leonardo who is married but files separately earns 60 500 of taxable income He also has 15 400 in city of Tulsa bonds His wife Theresa earns 50 400 of taxable income 10 If Leonardo and his wife are married filing jointly in 2023 what is Leonardo and Theresa s effective tax rate for 2023 Use tax rate schedule Note Round your final answer to two decimal places 01 57 03 Multiple Choice 12 00 percent 15 53 percent 17 83 percent 22 00 percent

B Find the quartile of the distribution and draw the boxplot for the given dataset Suppose we have measured 9 females and their heights in inches sorted from smallest to largest are 59 60 62 64 66 67 69 70 72

Which expression has a value of 1 A 2 4 B 24 1 C 28 2 2 8 2 D O A O B O C

00 32 24 If Julius has a 22 percent tax rate and a 9 percent after tax rate of return 32 500 of income in three years will cost him how much tax in today s dollars Use Exhibit 3 1 Note Round discount factor s to three decimal places Multiple Choice 5 520 25 090 7 150 32 500 None of the choices are correct Sub

In tax year 1 an electronics packaging firm had a gross income of 32 000 000 8 000 000 in salaries 7 000 000 in wages 1 100 000 in depreciation expenses a loan principal payment of 250 000 and a loan interest payment 200 000 Determine the net income of the company in tax year 1 The corporate tax rate is 21 The net income of the company in tax year 1 is Round to the nearest dollar

The Vermont Construction Company purchased a hauling truck on January 1 2022 at a cost of 34 000 The truck has useful life of eight years with an estimated salvage value of 7 000 The straight line method is used for book purposes For tax purposes the truck would be depreciated with the MACRS method over its five year class life Determine the annual depreciation amount to be taken over the useful life of the hauling truck for both book and tax purposes Click the icon to view the MACRS depreciation schedules Compute the depreciation amounts for the hauling truck and fill in the table below Round to the nearest dollar SL Depreciation MACRS Depreciation n 1 3 4 GA 69 A 69 S SA

The population of a country has been decreasing for several decades In 1990 the population was about 173 million people In 2010 the population was about 170 million people Determine the percent decrease in the country s population during this time period The country s population decreased by about during this time period Round to one decimal place as needed

Suppose the price of apples increases from 23 to 26 and in response quantity demanded decreases from 108 to 96 Using the mid point formula what is the price elasticity of demand Note your answer should be correct to two decimal places and be sure to express your answer as a positive number Your Answer

The total cost of producing 25 tons of butter is 45000 If average variable cost is 825 then what is the firm s average fixed cost enter answer as just a number no commas dollar signs or the like Your Answer

Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the d Merchandise gross 3 b S C d 5 000 20 000 75 000 10 000 Terms 2 10 n 60 1 15 n 90 1 10 n 30 3 15 n 45 Payment

You want to receive 5 000 per month for the next 5 years How much would you need to deposit today if you can earn 0 75 per month What monthly rate would you need to earn if you only have 200 000 to deposit