91Ó°ÊÓ

In Exercises 1-2, find the gross income, the adjusted gross income, and the taxable income. A taxpayer earned wages of 52,600\(, received 720\) in interest from a savings account, and contributed 3200\( to a tax-deferred retirement plan. He was entitled to a personal exemption of 4050\) and had deductions totaling 7250$.

In Exercises 1-10, express each fraction as a percent. \(\frac{2}{5}\)

In Exercises 1-10, \((n)\) a. Find the value of each annuity. Round to the nearest dollar. b. Find the interest. $$ \begin{array}{|l|l|l|} \hline \text { Periodic Deposit } & \text { Rate } & \text { Time } \\ \hline \begin{array}{l} \$ 2000 \text { at the end of } \\ \text { each year } \end{array} & \begin{array}{l} 5 \% \text { compounded } \\ \text { annually } \end{array} & 20 \text { years } \\ \hline \end{array} $$

Exercises 1-2 involve credit cards that calculate interest using the average daily balance method. The monthly interest rate is \(1.5 \%\) of the average daily balance. Each exercise shows transactions that occurred during the March 1-March 31 billing period. In each exercise, a. Find the average daily balance for the billing period. Round to the nearest cent. b. Find the interest to be paid on April 1, the next billing date. Round to the nearest cent. c. Find the balance due on April 1 . d. This credit card requires a \(\$ 10\) minimum monthly payment if the balance due at the end of the billing period is less than \(\$ 360\). Otherwise, the minimum monthly payment is \(\frac{1}{36}\) of the balance due at the end of the billing period, rounded up to the nearest whole dollar. What is the minimum monthly payment due by April 9? $$ \begin{array}{|ll|c|} \hline \text { Transaction Description } & \text { Transaction Amount } \\ \hline \text { Previous balance, } \$ 7150.00 & \\ \hline \text { March 1 } & \text { Billing date } & \\ \hline \text { March 4 } & \text { Payment } & \$ 400 \text { credit } \\ \hline \text { March 6 } & \text { Charge: Furniture } & \$ 1200 \\ \hline \text { March 15 } & \text { Charge: Gas } & \$ 40 \\ \hline \text { March 30 } & \text { Charge: Groceries } & \$ 50 \\ \hline \text { March 31 } & \text { End of billing period } & \\ \hline \text { Payment Due Date: April 9 } & \\ \hline \end{array} $$

In Exercises 1-10, use $$ P M T=\frac{P\left(\frac{r}{n}\right)}{\left[1-\left(1+\frac{r}{n}\right)^{-n t}\right]} . $$ Round answers to the nearest dollar. Suppose that you decide to borrow \(\$ 40,000\) for a new car. You can select one of the following loans, each requiring regular monthly payments: Installment Loan A: three-year loan at \(6.1 \%\) Installment Loan B: five-year loan at \(7.2 \%\). a. Find the monthly payments and the total interest for Loan A. b. Find the monthly payments and the total interest for Loan B. c. Compare the monthly payments and the total interest for the two loans.

In Exercises 1-10, use $$ P M T=\frac{P\left(\frac{r}{n}\right)}{\left[1-\left(1+\frac{r}{n}\right)^{-n t}\right]} $$ to determine the regular payment amount, rounded to the nearest dollar. In terms of paying less in interest, which is more economical for a \(\$ 150,000\) mortgage: a 30 -year fixed-rate at \(8 \%\) or a 20 -year fixed-rate at \(7.5 \%\) ? How much is saved in interest?

In Exercises 1-12, the principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. a. Find how much money there will be in the account after the given number of years. (Assume 360 days in a year.) b. Find the interest earned. Round answers to the nearest cent. \(\$ 9500\) \(6 \%\) quarterly 5 years

Suppose your credit card has a balance of \(\$ 3600\) and an annual interest rate of \(16.5 \%\). You decide to pay off the balance over two years. If there are no further purchases charged to the card, a. How much must you pay each month? b. How much total interest will you pay?

In Exercises \(1-8\), the principal \(P\) is borrowed at simple interest rater for a period of time t. Find the simple interest owed for the use of the money. Assume 360 days in a year. \(P=\$ 15,500, r=11 \%, t=90\) days

In Exercises 1-10, use $$ P M T=\frac{P\left(\frac{r}{n}\right)}{\left[1-\left(1+\frac{r}{n}\right)^{-n t}\right]} . $$ Round answers to the nearest dollar. Suppose that you decide to buy a car for \(\$ 37,925\), including taxes and license fees. You saved \(\$ 12,000\) for a down payment and can get a five-year loan at \(6.58 \%\). Find the monthly payment and the total interest for the loan.