## Rachael has a job assembling a certain car accessory.

Rachael has a job assembling a certain car accessory.
Last month she made a total of 424 items. Calculate her gross pay (in \$) if she is paid on the following differential piecework schedule.
Pay Level Items produced Rate per Item
1 1–160 \$9.58
2 Over 160 \$11.41
\$

Inez wants to have \$14,750 in 5 years. Use the present value formula to calculate how much Inez should invest now at 4% interest, compounded quarterly in order to reach her goal.
\$11,800.00\$12,080.30 \$12,088.28\$12,123.42

3.
Georgia bought outdoor furniture for a total purchase price of \$2,050.75. State taxes were 5.75%. Find the amount of the sales tax. (Round your answer to the nearest cent.)
\$97.65\$111.51 \$116.08\$117.92

4.
Suppose you wish to have \$11,000 in 13 years. Use the present value formula to find how much you should invest now (in \$) at 6% interest compounded semiannually in order to meet your goal. (Round your answer to the nearest cent.)
\$

5.

Ross is single with an adjusted gross income of \$69,100, and he uses the standard deduction for single filers. After first finding his taxable income, calculate his tax liability (in \$).
\$

6.
Find the amount (in \$) of interest and the maturity value of the loans. Use the formula
MV = P + I
to find the maturity value. (Round your answers to two decimal places.)
Principal Rate (%) Time Interest Maturity Value
\$185,000 14
1
2
5 months \$ \$

7.
Suppose you bought a sofa for a total purchase price of \$1,584.97. Sales tax was 4%. What was the amount of the sales tax (in \$)? (Round your answer to the nearest cent.)
\$

8.
The financial officer of Toys and Noise arranges a loan of \$8,500, at 8.5% interest, for 31 months. Find the amount of simple interest. (Round to the nearest cent.)
\$1,445.00\$1,866.46 \$2,239.75\$3,290.32

9.
Gina’s base pay rate is \$14.25 per hour, with overtime pay of time-and-a-half, and double-time for holidays. Calculate her gross pay if she worked 4.5 holiday hours in addition to 39 hours Monday through Saturday. (Round your answer to the nearest cent.)
\$619.88\$651.94 \$684.00\$961.88

10.
Maria invests \$4,200, at 6% interest, compounded quarterly for one year. Use Table 11-1 to calculate the annual percentage yield (APY) for her investment (as a %). Note: “Annual percentage yield” is also known as “effective interest rate.” (Round your answer to two decimal places.)
%

11.
A store manager obtained a loan of \$35,000, at
6
3
8
%
interest, for 14 months to purchase supplies. Find the amount of simple interest. (Round to the nearest cent)
\$2,231.25\$2,603.13
\$3,114.38\$31,237.50

1. Rachael’s gross pay is \$4,643.68.

``````Pay Level Items produced Rate per Item Total
1 1–160 \$9.58 \$1,532.80
2 Over 160 \$11.41 \$3,110.88
Total: \$4,643.68``````

2. Inez should invest \$12,088.28 now at 4% interest, compounded quarterly in order to reach her goal of \$14,750 in 5 years.

``````PV = FV / (1 + r/n)^(n*t)
``````

Where:

• PV is the present value
• FV is the future value
• r is the interest rate
• n is the number of compounding periods per year
• t is the number of years
``````PV = \$14,750 / (1 + 0.04/4)^(4*5)
``````
``````PV = \$12,088.28
``````

3. The amount of the sales tax is \$117.92.

``````Sales tax = purchase price * sales tax rate
``````
``````Sales tax = \$2,050.75 * 0.0575
``````
``````Sales tax = \$117.92
``````

4. You should invest \$6,702.12 now at 6% interest, compounded semiannually in order to reach your goal of \$11,000 in 13 years.

``````PV = FV / (1 + r/n)^(n*t)
``````

Where:

• PV is the present value
• FV is the future value
• r is the interest rate
• n is the number of compounding periods per year
• t is the number of years
``````PV = \$11,000 / (1 + 0.06/2)^(2*13)
``````
``````PV = \$6,702.12
``````

5. Ross’s tax liability is \$12,625.50.

``````Taxable income = adjusted gross income - standard deduction
``````
``````Taxable income = \$69,100 - \$12,950
``````
``````Taxable income = \$56,150
``````

Tax table for single filers with taxable income between \$55,951 and \$59,750:

Tax bracket Marginal tax rate
12% First \$55,950
22% Over \$55,951

Tax calculation:

``````Income tax = (\$55,950 * 0.12) + (\$56,150 - \$55,950) * 0.22
``````
``````Income tax = \$6,714 + \$411.50
``````
``````Income tax = \$12,625.50
``````

6.

Loan 1:

• Interest = \$185,000 * 0.14 * (5/12) = \$1,875.00
• Maturity value = \$185,000 + \$1,875.00 = \$186,875.00

Loan 2:

• Interest = \$185,000 * 0.14 * (7/12) = \$2,625.00
• Maturity value = \$185,000 + \$2,625.00 = \$187,625.00

7. The amount of sales tax is \$63.39.

``````Sales tax = purchase price * sales tax rate
``````
``````Sales tax = \$1,584.97 * 0.04
``````
``````Sales tax = \$63.39
``````

8. The amount of simple interest is \$1,445.00.

``Simple``