FOCUS ON PERSON FIN-CONNECT ACCESS
6th Edition
ISBN: 9781264106776
Author: Kapoor
Publisher: INTER MCG
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Chapter 3, Problem 14P
a)
Summary Introduction
To determine: The amount of savings in taxes for the current year.
b)
Summary Introduction
To determine: The
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- You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.arrow_forwardOn December 30, you make a $4,100 charitable donation. a. If you are in the 32 percent tax bracket, how much will you save in taxes for the current year? (Assume your other itemized deductions exceed the standard deduction amount.) Tax savings b. If you deposit that tax savings in a savings account for the next four years at 6 percent, what will be the future value of that account? Use Exhibit 1-A. (Round FV factor to 3 decimal places. Round your answers to 2 decimal places.) Future valuearrow_forwardNew parents wish to save for their newborn's education and wish to have $40,000 at the end of 17 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 4.5% compounded annually? (Round your answers to two decimal places.) How much interest would they earn over the life of the account? Determine the value of the fund after 11 years. How much interest was earned during the 11th year?arrow_forward
- To be sure that you understand how to use the tables in Appendix A at the end of this book, solve the following exercises. Ignore income tax considerations. The correct answers, rounded to the nearest dollar, appear on page 855. Q.You have just turned 65 and an endowment insurance policy has paid you a lump sum of $400,000. If you invest the sum at 6%, how much money can you withdraw from your account in equal amounts at the end of each year so that at the end of 7 years (age 72), there will be nothing left?arrow_forwardAt the end of this year, you intent to contribute $5000 to your retirement account. You are committed to increasing your contribution by 2% each year. If you can earn a 6% average annual return in your savings account, how much money will you have in your account after you make 45 contributions?arrow_forwardYou choose to invest your $3,435 income tax refund check (rather than spend it) in an account earning 6% compounded annually. How much will the account be worth in 30 years? (Use the Table provided.) (Round your answer to the nearest cent.) Wortharrow_forward
- 1) Suppose that you want to create a "college fund" for your newborn child and place $300 in a bank account at the end of each of the next 20 years. If that account earns an annual rate of return of 7%, how much will be in that account at the end of the twentieth year? A) $13,420.00 B) $12,977.53 C) $13,178.20 D) $11,828.32 E) $12,298.65arrow_forwardGinger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?arrow_forwardSuppose you are in the 35% tax bracket (because you make $210,000) and have $6000 to put into a retirement account. How much tax do you pay on the $6000 this year if you put the money into a Traditional IRA? $arrow_forward
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How to Calculate your Income Tax? Step-by-Step Guide for Income Tax Calculation; Author: ETMONEY;https://www.youtube.com/watch?v=QdJKpSXCYmQ;License: Standard YouTube License, CC-BY
How to Calculate Federal Income Tax; Author: Edspira;https://www.youtube.com/watch?v=2LrvRqOEYk8;License: Standard Youtube License