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nutrition_man nutrition_man
wrote...
Posts: 41
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11 years ago
I have a couple of take home questions that are apart of my test I need help on. I think I have some figured out, but I want to double check.

1. Jean and Jim have liquid assets of $3,600 and other assets of $42,800. Their total liabilities equal $26,000. What is their net worth?

I have so far... New worth = all assets - all liabilities. So, that is (3600+42800)-26000= $20,400 Right?

2. Inflation this coming year is expected to be 4 percent. If Mr. Gonza earned $37,000 this year, how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures?

Here I'm assuming they are asking for what he needs (such as a raise) to help with inflation, so...
37000(0.4)=1480. Then $37,000+1480= $38,480.

3. The Hamptons want to have $1,750,000 for their retirement in 30 years. How much should they save annually if they think they can earn 8% on their investments?

Sounds like simple math, but I'm not sure.

4. Jamie has taxable income of $45,000. She is single and her tax rates are 10% for the first 7k; 15% on everything from $7k-28.4k; and 25% on everything up to $45k. What is Jamie's tax liability? Marginal Tax Rate? Average Tax Rate?

I only need to figure out the Marginal Tax rate.

5. George is single and his standard deduction for the year is $5,800. If he is in the 35% marginal tax bracket, how much tax would he save by using his itemized deductions of $12,600?

I don't even know where to start.




Help Please.
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Answer rejected by topic starter
wrote...
#1
Donated
11 years ago
Glad to see you're not following forum rules.

Quote from: nutrition_man (11 years ago)
1. Jean and Jim have liquid assets of $3,600 and other assets of $42,800. Their total liabilities equal $26,000. What is their net worth?

I have so far... New worth = all assets - all liabilities. So, that is (3600+42800)-26000= $20,400 Right?

$3,600
+$42,800

Quote from: nutrition_man (11 years ago)
2. Inflation this coming year is expected to be 4 percent. If Mr. Gonza earned $37,000 this year, how much must he earn the following year just to keep up with inflation and maintain the balance between his income and his increasing expenditures?

Here I'm assuming they are asking for what he needs (such as a raise) to help with inflation, so...
37000(0.4)=1480. Then $37,000+1480= $38,480.

The income should rise by the same amount of inflation to maintain the existing balance between income and expenditures. Hence he should earn, 37,000 * (1+0.04) = $38,48
nutrition_man Author
wrote...
#2
11 years ago
What rule(s) am I not following?

I ended up figuring all of them out on my own...for those that care.
wrote...
#3
Donated
11 years ago
Quote from: nutrition_man (11 years ago)
What rule(s) am I not following?

I ended up figuring all of them out on my own...for those that care.

Two questions per thread. and descriptive title
Answer rejected by topic starter
wrote...
#4
11 years ago
Financial insurance company marketing firms hash out bland advertising. See how one marketing firm develops a financial marketing idea designed to knockout traditional insurance company compensation.
Dan Jones
wrote...
#5
Donated
10 years ago
1. The income should rise by the same amount of inflation to maintain the existing balance between income and expenditures. Hence he should earn, 37,000 * (1+0.04) = $38,480

2. It is an annuity with present value = 0, future value of $1,000,000, number of periods = 25 and interest rate of 10%. Solving for annual payments (using a financial calculator), she should save $10,168.07 annually.
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