Cheryl purchased a whole life insurance policy having a face value of 425,500 when she was 30 years old. Based on Table 19-3 from your text, what is the cash value of her policy if she is now 40 years old?
A) 42,257
B) 40,262
C) 41,699
D) 41,134
Q. 2Naomi received weekly wages of 1,185.58. She is married and is entitled to 7 withholding allowances. How much income tax will be withheld, based on the percentage method tables in Exhibits 9-1 and 9-2 from your text?
A) 0
B) 20.29
C) 30.16
D) 82.66
Q. 3At age 20, Zia purchased a 20-payment life insurance policy with face value of 415,000. She is now 40 and wants to cancel her policy. Use Table 19-3 from your text to calculate the amount of reduced paid-up insurance to which she is entitled.
A) 41,500
B) 354,665
C) 382,530
D) 415,000
Q. 4Mary earned 41,258.75 for the past calendar year. How much did she pay for the year in social security and Medicare taxes? (Social Security Tax is 6.2 of gross wages up to 117,000. Medicare Tax is 1.45 of all gross wages.)
A) 2,931.25
B) 3,225.31
C) 3,156.29
D) 3,425.31
Q. 5Pern purchased a 20-year endowment insurance policy having a face value of 20,000 when she was 20 years old. Based on Table 19-3 from your text, what is the cash value of her policy if she is now 30 years old?
A) 2,191
B) 2,910
C) 3,324
D) 6,480
Q. 6What will be the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck of 3,960.00, if she has already earned 42,560.00 this year? (Social security tax is 6.2 of gross wages up to 117,00. Medicare tax is 1.45 of all gross wages.)
A) 283.52
B) 302.94
C) 101.87
D) 242.92
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