I ONLY CAN AFFORD SUM $2.00
The following is the homework assignment for Week Two covering Chapters 4-6. To submit your homework create a word document that contains your numbered answers to assignments. Please clearly indicate which chapter the homework is from and don’t forget to type your name on the document. You will then submit the file through the homework drop box. Please clearly mark your homework with: 1) your name, 2) chapter assignment is from (or Additional Problems), and 3) problem number.
Your homework will be graded and a grade posted in your Portfolio. Homework is due on January 24th.
HOMEWORK: Week Two:
Chapter 4: 4.3 #2 (p. 97)
Chapter 5: 5.3 #1 (p. 123)
Additional Homework in Week 2 Module under Activities – The following is the assignment. The above copied information have been provided to assist you in keeping track of all assigned homework.
NOTE: Due to the sensitivity of financial information –feel free to use made up numbers whenever asked to assess your personalfinances. I assure you that any information submitted will be kept confidential.
Paul Ramos just graduated from college and landed his first “real” job, which pays $23,000 a year. In ten years, what will he need to earn to maintain the same purchasing power if inflation averages 3.0 percent?
Calculate the future value of $5,000 earning 10 percent after one year assuming annual compounding. Now, calculate the future value of $5,000 earning 10 percent after 20 years.
When Derek was a small child, his grandfather established a trust fund for him to receive $20,000 on his thirty-fifth birthday. (Any earnings beyond $20,000 reverted to his grandfather.) Derek just turned 23. What is the present value of the trust today if it earns 7% interest and Derek will receive it at age 35? What is the present value of the $20,000 to be received in 17 years if he had to wait until age 40 to receive the money?
Richard Gorman is 65 years old and about to retire. He has $500,000 saved to supplement his pension and Social Security, and would like to withdraw it in equal annual dollar amounts so that nothing is left after 15 years. How much does he have to withdraw each year if he earns 7% on his money?
List and describe four non-income-based taxes. Be sure to categorize each tax as either progressive or regressive.
What are the three primary types of taxable income, as defined by the IRS?
What is taxable income and what is the formula for determining taxable income?
In addition to random selections, what are the four most common “signals” the IRS looks for when selecting taxpayers for audits?
Mrs. Hubbard, a mother of two, has been selected for an audit. Advise her on what to do to prepare for the audit and what to do if the audit does not turn out favorably.
Harry and Linda Talen are in their golden years. Discuss The best tax reduction method for them to use in reducing their estate taxes.