1. Thomas Franklin arrived at the
following tax information:
Gross salary, $46,660
Interest earnings, $225
Dividend income, $80
One personal exemption, $3,400
Itemized deductions, $7,820
Adjustments to income, $1,150
What amount would Thomas report as
taxable income?
34,595
2.
What would be the net annual
cost of the following checking account?
Monthly fee, $3.75; processing fee, 25 cents per check; checks written,
an average of 22 a month.
$111
3. What would be the average tax
rate for a person who paid taxes of $4,864.14 on a taxable income of $39,870?
12.2%
4. A payday loan company charges
4 percent interest for a two-week period.
What would be the annual interest rate from that company?
104%
5. What is the annual opportunity
cost of a checking account that requires a $350 minimum balance to avoid
service charges? Assume an interest rate of 6.5 percent.
$372.75
