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A common complaint about income tax is "I can't afford to work more because it will put me in a higher tax bracket." Is it possible that being in a higher bracket means you actually lose money? Explain your answer.

48\. Suppose that the local sales tax rate is \(7 \%\) and you purchase a graphing calculator for \(\$ 96\). a. How much tax is paid? b. What is the calculator's total cost?

A dictionary that normally sells for \(\$ 16.50\) is on sale at \(40 \%\) off. a. What is the discount amount? b. What is the dictionary's sale price?

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?

You would like to have \(\$ 75,000\) available in 15 years. There are two options. Account A has a rate of \(4.5 \%\) compounded once a year. Account B has a rate of \(4 \%\) compounded daily. How much would you have to deposit in each account to reach your goal?

An account has a nominal rate of \(4.2 \%\). Find the effective annual yield, rounded to the nearest tenth of a percent, with quarterly compounding, monthly compounding, and daily compounding. How does changing the compounding period affect the effective annual yield?

How much should you deposit at the end of each month in an IRA that pays \(8 \%\) compounded monthly to earn \(\$ 60,000\) per year from interest alone, while leaving the principal untouched, when you retire in 30 years?

Suppose that you have \(\$ 10,000\) in a rather risky investment recommended by your financial advisor. During the first year, your investment decreases by \(30 \%\) of its original value. During the second year, your investment increases by \(40 \%\) of its first-year value. Your advisor tells you that there must have been a \(10 \%\) overall increase of your original \(\$ 10,000\) investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your original \(\$ 10,000\) investment?

The price of a color printer is reduced by \(30 \%\) of its original price. When it still does not sell, its price is reduced by \(20 \%\) of the reduced price. The salesperson informs you that there has been a total reduction of \(50 \%\). Is the salesperson using percentages properly? If not, what is the actual percent reduction from the original price?

Explain how to use the sales tax rate to determine an item's total cost.