Project #38053 - Business Math!

The Social Security Administration increased the taxable wage base from $107,300 to $108,900. The 6.2% tax rate is unchanged. Joe Burns earned over $120,000 each of the past two years.


 

a.

What is the percent increase in the base? (Round your final answer to the nearest hundredth percent.)

   
 

 

 

 

Pat Maninen earns a gross salary of $3,900 each week. Assume a rate of 6.2% on $110,100 for Social Security and 1.45% for Medicare.


 

a.

What are Pat’s first week’s deductions for Social Security and Medicare? (Round your answers to the nearest cent.)

   

       

 

Social Security and Medicare tax:

Have different rates
Are paid only by employees
Are based on the number of dependents not claimed
Are paid by only the employer
None of these
 
A merit rating system for SUTA means:
Rates cannot change
State rates will always be lower
Rate varies with employment record
FUTA will increase
None of these
 
Percentage method tables can show:
Weekly period rates
Biweekly payroll rates
Semimonthly payroll rates
Monthly payroll rates
All of these
 

David is paid on a graduated commission scale at Nooter Company. He receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:
rev: 08_24_2013_QC_ 34268
$8,200
$6,200
$4,240
$4,420
None of these
 

Len Mast earned $2,300 for the last 2 weeks. He is married, is paid biweekly, and claims 3 exemptions. What is Len’s income tax? Use the percentage method. (Use Table 9.1 and Table 9.2). (Round your answer to the nearest cent.)


  Income tax   

 

Morris Leste, owner of Carlson Company, has three employees who earn $580, $645, and $805 per week. What are the total state and federal unemployment taxes that Morris owes for the first 11 weeks of the year and for week 30? Assume a state rate of 5.6% and a federal rate of 0.8%. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest cent.)

 

    
  State taxes owed   
  Federal taxes owed   
  Taxes owed for week 30   

 

Leslie Hart borrowed $15,100 to pay for her child’s education at Riverside Community College. Leslie must repay the loan at the end of 16 months in one payment with 1formula12.mml interest.

 

a.

How much interest must Leslie pay? (Do not round intermediate calculation. Round your answer to the nearest cent.)

 

  Interest   

 

b.

What is the maturity value? (Do not round intermediate calculation. Round your answer to the nearest cent.)

 

  Maturity value   

 

Bill Moore is buying a used Winnebago. His April monthly interest at 12.90% was $129.00. What was Bill’s principal balance at the beginning of April? (Use 360 days a year. Do not round intermediate calculations.)

 

  Principal balance  $  

 

On April 5, 2014, Janeen Camoct took out an 8.75% loan for $25,000. The loan is due March 9, 2015. Sabrina Bowers took out the same loan as Janeen. Sabrina’s terms, however, are exact interest. (Use Days in a year table.)

 

a.

What is Sabrina’s difference in interest? (Do not round intermediate calculations. Round your answer to the nearest cent.)

 

  Difference   

 

b.

What will she pay on March 9, 2015? (Round your answer to the nearest cent.)

 

  Amount   
 

Max Wholesaler borrowed $5,000 on a 12%, 120-day note. After 45 days, Max paid $1,750 on the note. Thirty days later, Max paid an additional $1,500. Use ordinary interest.


a.

Determine the total interest use the U.S. Rule. (Do not round intermediate calculations. Round your answers to the nearest cent.)


  Total interest amount   

b.

Determine the ending balance due use the U.S. Rule.(Do not round intermediate calculations.Round your answers to the nearest cent.)


  Ending balance due   

 

Debbie McAdams paid 12% interest on a $17,500 loan balance. Jan Burke paid $10,575 interest on a $112,500 loan. Based on 1 year:


 

a. What was the amount of interest paid by Debbie?


 

  Interest paid by Debbie   



 

b. What was the interest rate paid by Jan? (Round your answer to the nearest tenth percent.)


 

  Interest rate paid by Jan  %  


 

c.

Debbie and Jan are both in the 28% tax bracket. Since the interest is tax deductible, how much will Debbie and Jan each save in taxes? (Round your answers to the nearest cent.)


 

         Debbie      Jan
  Save in taxes  $      

 

Joyce took out a loan for $21,900 at 12% on March 18, 2013, which will be due on January 9, 2014. Using ordinary interest, Joyce will pay back on Jan. 9 a total amount of:
rev: 08_24_2013_QC_ 34268

$2,167.10
$24,068.10
$24,038.40
$2,138.40
None of these

 

With interest of $1,832.00 and a principal of $16,000 for 206 days, using the ordinary interest method, the rate is:

20%
12%
2%
10%
None of these
 
Calculate the discount period for the bank to wait to receive its money: (Use Days in a year table):

Date of note Length of note Date note discounted Discount period      
September 11 45 days October 5   days   

Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 10%. Use the ordinary interest method. (Use Days in a year table.) (Do not round intermediate calculations. Round your final answers to the nearest cent.)

 

Face value
(principal)
Rate of
interest
Length of
note
             Maturity value Date of
note
Date note
discounted
    Discount period            Bank discount           Proceeds   
$29,000 8%   50 days    February 5 March 7  days       

 

Assume the $10,000 Treasury bill, 5% for 13 weeks. Calculate the effective rate of interest. (Use calendar year. Round your answer to the nearest hundredth percent.)


  Effective rate of interest   %  

 

 

You were offered the opportunity to purchase either a simple interest note or a simple discount note with the following terms: $29,059 at 8% for 12 months. 

 

a.

Calculate the effective interest rate. (Do not round intermediate calculations. Round your final answer to the nearest tenth percent.)

 

  Effective interest rate   

 

b. Based on the effective interest rate, which would you choose?
   
 
simple discount note
simple interest note

 

The Treasury Department auctioned $29 billion in 3-month bills in denominations of $10,000 at a discount rate of 5.700%.

 

What would be the effective rate of interest? (Use calendar year. Do not round intermediate calculations. Round your answer to the nearest hundredth percent.)

 

  Effective rate of interest  %  

 

Toyota Motor Corporation has faced tough times after losing production due to natural disasters. This, coupled with the yen’s appreciation against the dollar, has Toyota anticipating net profits 51% lower than last year. If Toyota had a ¥18,000 note at 1.5% interest for 340 days, what would Toyota’s proceeds be if it discounted the note on day 220 at 3%? (Round your final answer to the nearest yen.)

 

  Proceeds ¥   
 
 
A promissory note is always an oral promise.
True
False

The principal of a promissory note is the face value.

True
False

The maturity date of a promissory note represents when only the principal is due.

True
False

Proceeds of a simple discount note equals amount borrowed minus bank discount.

True
False

A simple discount note results in:

Lower interest costs than a simple interest note
Same interest costs as a simple interest note
Interest deducted when note is paid back
Interest deducted in advance
None of these

Subject Mathematics
Due By (Pacific Time) 08/18/2014 08:30 pm
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