MGF 1107 – Liberal Arts Math | A+ Graded
Questions with Step-by-Step Solutions
If he makes an IRA contribution of $963, by how much will his tax bill decrease?
FICA - ✔✔Towanda is single with one dependent child. She is filing as head of household. She
earned $59244 in wages, tips and salary, and earned $155 in taxable interest or dividends.
She had $9593 in itemized deductions. How much did she pay in FICA?
Payment goals - ✔✔Suppose that your retirement goal is to accumulate $161000 after 17
years, and that you have an investment fund that will pay a nominal annual rate of 5.11%
compounded monthly . What should be the amount of the regular monthly payment in order
to accomplish your goal (payments to be made at the end of each month )?
Future investment value - ✔✔Find the future value of investment account into which you
deposit $150 each week at a rate of 2.42% compounded weekly for 21 years.
Interest earned - ✔✔Suppose you deposit $175 into an investment account each quarter,
and, after 28 years, the value of the account is $54635. How much interest did you earn?
Simple interest - ✔✔What is the future value for a loan of $788 at 10.78% simple interest
over a period of 5 years?
Compound interest - ✔✔How much money is in a savings account after 6 years if the principle
is $155 and the nominal annual interest rate is 2.13% compounded monthly?
Compound interest (future) - ✔✔Suppose that after 6 years you want to have $2600 in an
account that pays 4.40% compounded monthly. How much should you deposit now in order
to achieve your goal?
APY - ✔✔What is the annual percentage yield if the nominal annual interest rate is 4.72%
compounded monthly?
Daily interest rate - ✔✔Find the daily interest rate if the annual interest rate for a credit card
is 18.45%.
Questions with Step-by-Step Solutions
If he makes an IRA contribution of $963, by how much will his tax bill decrease?
FICA - ✔✔Towanda is single with one dependent child. She is filing as head of household. She
earned $59244 in wages, tips and salary, and earned $155 in taxable interest or dividends.
She had $9593 in itemized deductions. How much did she pay in FICA?
Payment goals - ✔✔Suppose that your retirement goal is to accumulate $161000 after 17
years, and that you have an investment fund that will pay a nominal annual rate of 5.11%
compounded monthly . What should be the amount of the regular monthly payment in order
to accomplish your goal (payments to be made at the end of each month )?
Future investment value - ✔✔Find the future value of investment account into which you
deposit $150 each week at a rate of 2.42% compounded weekly for 21 years.
Interest earned - ✔✔Suppose you deposit $175 into an investment account each quarter,
and, after 28 years, the value of the account is $54635. How much interest did you earn?
Simple interest - ✔✔What is the future value for a loan of $788 at 10.78% simple interest
over a period of 5 years?
Compound interest - ✔✔How much money is in a savings account after 6 years if the principle
is $155 and the nominal annual interest rate is 2.13% compounded monthly?
Compound interest (future) - ✔✔Suppose that after 6 years you want to have $2600 in an
account that pays 4.40% compounded monthly. How much should you deposit now in order
to achieve your goal?
APY - ✔✔What is the annual percentage yield if the nominal annual interest rate is 4.72%
compounded monthly?
Daily interest rate - ✔✔Find the daily interest rate if the annual interest rate for a credit card
is 18.45%.
