Question

1) How long would it take a savings fo $20, 000 to become $50,000 if the interest rate is...

a) 2%?

b)3%?

c)5%?

2) How much money would you have to deposit into a savings account that lays 3.35% interest in order to have $10,000 after...

a) 5 years

b) 10 years

c) 15 years

3) Suppose you take $ 25,000 and deposit some of it into a saveings account that pays 2.1% interest. You then take the rest of the money and deposit it into a CD (certificate of deposit) that pays 3.9% interest. At the end of 10 years, the total value of both accounts is $32,680. How much was deposited into each account?

4) Suppose your filing status is married filing jointly, and you have taxable income of $53,599. However, there is an error in your tax filing--you forgot to report the interest that you earned on a $10,009 deposit into a savings account at 4% interest. How much extra are you going to owe in federal taxes?

5) It is common in financial planning to use the previous year's tax structure to plan for the next year. At the beginning of 2010 Jeff tried to plan his finances so that at the end of the year, he would owe nothing in taxes, and he also would not receive any money back from the IRS-in other words, he comes out even. He calculated his taxable earnings to be $50,510 for the upcoming year. However, his calculations did not take into account $125,000 that he deposited into a saving account payubg 2.5% interest. To still come out even with hus federal taxes, how much extra should ha have withheld from each of his bi-weekly paychecks? His filing status is single.

Answer 1

please send remaining questions as new question.Thank you!