Quiz 3
1) Use the table below for problem 1.
a) (5 points) Suppose Tim is a single man who has a taxable income of $42,000 per year. Use the table on the left to calculate Tim’s Federal taxes for the year. Show all work/ calculations.
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b) (2 points) What is Tim’s effective tax rate? Show all work/ calculations.
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2) (5 points) Bob invests $280 per month into an account that gives 1.9% annual interest, how much will Bob have in the account after 20 years? Solve the problem by hand using the appropriate formula, and show all work.
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3) (5 points) I invest a large sum of money into an account that gives 2.8% annual interest compounded monthly. I leave the money in the account for 30 years. At the end of the 30 years I now have $315,700. How much did I originally invest? Solve the problem by hand using the appropriate formula, and show all work.
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4) I find a house that is selling for $325,000. The bank offers me a 4.1% APR for the 30-year loan.
a) (5 points) How much will my mortgage payment be each month? Solve the problem by hand using the appropriate formula, and show all work.
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b) (2 points) If the house also has $9,430 of property taxes each year, then how much will I need to budget for the mortgage + property taxes each month? Show all work.
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5) (Excel problem) (5 points) Open Excel and fill in the cells from A10 through D371 with the necessary formulas in columns A, B, C, D to solve the problem posted below. I should be able to find your final answer at the end of column D in your file.
6) (Excel problem) (5 points) In Excel, fill in the cells with the necessary formulas in columns A, B, C, D to solve the problem posted below. I should be able to find your final answer at the end of column D in your file.
Sample Solution
