Pete's wife earns 37,400 per year. If Pete dies, his family would require 56,700 to cover their living expenses. Some of the yearly expenses would be offset by 2,400 from stock dividends, but this is still not enough. How much insurance should Pete have to cover the shortfall, given a 13.1 prevailing interest rate? (Round to nearest 1,000)
A) 159,000
B) 129,000
C) 156,000
D) 147,000
Q. 2Find the amount of income tax withheld from Karen's semimonthly gross paycheck of 1,937.50 using the percentage method tables in Exhibits 9-1 and 9-2 from your text. Karen is married and claims 4 withholding allowances.
A) 159.50
B) 152.48
C) 97.75
D) 101.27
Q. 3At age 30, Ravonda purchased a whole life insurance policy with a face value of 115,325. 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) 21,491.58
B) 21,450.45
C) 18,340.00
D) 26,222.22
Q. 4Find the amount of income tax withheld from Sun Jung's monthly paycheck of 8,612.50 using the percentage method tables in Exhibits 9-1 and 9-2 from your text. Sun Jung is single and claims 2 withholding allowances.
A) 1,156.36
B) 1,279.24
C) 1,605.86
D) 1,754.27
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