24 Questions
| Attempts: 78

This quiz will refresh your memory on some things in Chapter 7.

Questions and Answers

- 1.A taxpayer earned wages of $52,600, received $720 in interest from a savings account, and contributed $3200 to a tax deferred retirement plan. He was entitled to a personal exemption of $3500 and had deductions totaling $5450.
- Find the gross income.
- Find the adjusted gross income.
- Find the taxable income.

- 2.Describe one way calculating tax is similar to calculating the discount for an item on sale.
- 3.Describe one difference in calculating the total price with tax and calculating the sale price.
- 4.Under what circumstances should taxpayers itemize deductions?
- 5.What is the difference between a tax credit and a tax deduction?
- 6.Are discounted loans good for consumers? Explain why or why not.
- 7.What is the difference between simple interest and compound interest?
- 8.Explain how to select the best investment from two or more investments.
- 9.24% of 170 is what number?
- A.
52

- B.
40.8

- C.
34.1

- D.
56.4

- 10.3 is 60% of what number?
- A.
2

- B.
7

- C.
5

- D.
10

- 11.18 is what percent of 90?
- A.
20%

- B.
26%

- C.
30%

- D.
15%

- 12.An exercise machine with an original price of $860 is on saleat 12% off. What is the sale price of the machine?
- A.
$706.80

- B.
$730.80

- C.
$756.80

- D.
$740

- 13.Suppose that the local sales tax rate is 6% and you purchase a car for $32,800. How much tax do you pay?
- A.
$980

- B.
$1500

- C.
$2000

- D.
$1968

- 14.A fax machine regularly sells for $380. The sale price is $266.Find the percent decrease of the sale price from the regular price.
- A.
30%

- B.
20%

- C.
15%

- D.
45%

- 15.
- In addition to income tax, people are required to pay the federal government FICA (Federal Insurance Contribution Act) taxes. For people who are not self employed, the 2008 FICA tax rates were as follows:

- 7.65% on the first $102,000 from wages and tips
- 1.45% on income in excess of $102,000

- 16.Use the table for 7.2 to calculate the tax owed for a single person with no dependents with a taxable income of $18,000.Round to the nearest cent.
- 17.The principal P is borrowed at simple interest rate r for a period of time t. Find the simple interest owed for the use of the money.P = $4000, r = 6%, t = 1 year
- A.
$240

- B.
$250

- C.
$230

- D.
$300

- 18.The principal P is borrowed at simple interest rate r for a period of time t. Find the loan’s future value, A, or the total amount due at time t. Round answer to the nearest cent.P = $3000, r = 7%, t = 2 years
- A.
$3000

- B.
$3420

- C.
$4352

- D.
$3455

- 19.The principal P is borrowed and the loan's future value, A, at time t is given. Determine the loan’s simple interest rate, r, to the nearest tenth of a percent.P = $2000, A = $2150, t = 1 year
- A.
.075%

- B.
3%

- C.
7.5%

- D.
.03%

- 20.A bank offers a CD that pays a simple interest rate of 6.5%.How much must you put in this CD now in order to have $3000 for a class trip to Europe in two years?
- A.
$2654.87

- B.
$2550.78

- C.
$2677.99

- D.
$2456.98

- 21.You invest $3700 in an account paying 3.75% interest compounded daily. What is the account’s effective annual yield?
- A.
3.82%

- B.
6%

- C.
4.4%

- D.
3%

- 22.A 30-year-old worker plans to retire at age 65. He believes that$500,000 is needed to retire comfortably. How much should be deposited now at 7% compounded monthly to meet the $500,000 retirement goal?
- A.
$45,456

- B.
$43,456

- C.
$47,456

- D.
$40,456

- 23.The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Find
__how much money will be in the account__after the given number of years, and__how much interest was earned__. Round to the nearest cent. Principal: $12000 / Rate: 6.5% / Compounded: quarterly / Time: 1 year- A.
$12,100.05

- B.
$12,780.30

- C.
$12,799.22

- D.
$12,560.99

×

Wait!

Here's an interesting quiz for you.