Assume you work at Taco CabaƱa part time during college. Your federal income taxes are $1,500 this year (year 1) and are expected to follow a geometric gradient series with increases of 5% each year through year 6, when you plan to complete graduate studies. Calculate the present worth of the tax series at $i$ = 10% per year. The present worth of the tax series is $
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'How much federal income tax will you owe? Instructions: Enter your answer rounded to 2 decimal places: 7,272.50 What marginal tax rate applies to your last dollar of taxable income? 25 percent f As the parent of a dependent child, you qualify for the government's $2,000 per-child "tax credit:" Like all tax credits, this $2,000 credit "pays" for $2,000 of the tax You owe. Given this credit; how much money will you actually have to pay in taxes? Instructions: Enter your answer rounded to 2 decimal places: 6,272.50 Using that actual amount; what is your average tax rate relative to your taxable income in part d? Instructions: Enter your answer rounded to decimal place: 9.6 percent What is your average tax rate relative to your gross income? Instructions: Enter your answer rounded to decimal place. 9.6 percent'
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A series of equal quarterly receipts of $5000 extends over a period of five years. What is the estimated present worth of this quarterly payment series at 8% interest compounded continuously? You have just inherited $200,000 and wisely decide to invest your money in a diversified portfolio with your investment firm. Your financial advisor tells you that you can earn an average of 8% interest per year on your investment. You tell your advisor that you want to retire as soon as your account balance reaches $1,000,000. If you do not add or take money out of your account and interest does not fluctuate, how long, rounded to the nearest year, will it take before you have a $1,000,000 balance?
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Find the total value TV of the given income stream and also find its present value PV (at the beginning of the given interval) using the given interest rate. (Round your answers to the nearest cent.) R(t) = 47,000e0.05t, 0 ā¤ t ā¤ 12, at 2% When your first child is born, you begin to save for college by depositing $475 per month in an account paying 12% interest per year. You increase the amount you save by 2% per year. With continuous investment and compounding, how much will have accumulated in the account by the time your child enters college 18 years later? (Round your answer to the nearest cent.)
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