CYAF 222 practice midterm || A+ Score Secured.
A tax that requires a higher income person to pay a higher precentage of his/her income in taxes
is called a ___ tax whereas the ____ tax rate is the rate at which your last dollar earned is taxed
correct answers progressive
marginal
Andrea is managing her finances and has an opportunity to earn some extra money developing a
webpage for a start-up business. The owners of the new business have agreed to pay her $7,500
once the project has been completed. Andrea is in the 15% marginal tax bracket this year but
next year, after she gets married, she will be in the 25% marginal tax bracket. If Andrea pushes to
finish the project this calendar year, her estimated income tax liability on the extra earnings will
be $ ___
and if she takes longer and completes the work next calendar year (after January 1) her
estimated income tax liability on the extra earnings will be $___
. correct answers 1125
1875 (after Jan. 1st)
Invest now or later? Twins Barbara and Mary are both age 27. Beginning at age 27, Barbara
invests $2000 per year for ten years and then never sets aside another penny. Mary waits 10 years
and then invests $2000 per year for the next 30 years. Assuming they both earn 7 percent, how
much will each twin have at age 67?
Step 1: Barbara starts investing $2000 annually for ten years and then stops. When Barbara
reaches age 37 she has accumulated $[___]. correct answers 7739.3690
Perry Hajda had 4 credit cards in his billfold when his wallet was stolen. He reported the cards
missing as soon as he discovered the loss (after 2 days), but the following charges were incurred
before he reported the stolen cards:
, $175--Kohl's
$150--Visa
$35--MasterCard
$120--Shell Fuel Card
How much is Perry's maximum legal liability for the fraudulent charges on these cards? correct
answers 185.0000
A grace period is the time period in days during which deposits or withdrawals can be made and
still earn the same interest as other savings from a given day of the interest period. correct
answers True
A low asset-to-debt ratio is a positive indicator of financial well-being. correct answers True
An ill-advised credit purchase can have negative effects on your budget for years. correct
answers True
Simone and Jake are a married couple filing their income taxes jointly. The have 4 dependent
children, Conner (age 6), Lucy (age 10), Melinda (age 14), and Ben (age 16). Based on the
information provided below, their taxable income is $[ ].
Simone's total income is $60,000 but $5,000 qualify as exclusions
Jake's gross income is $54,000
Together, their adjustments total $9,000
Their itemized deductions total $10,500
The standard deductions for a married couple filing jointly is $11,400
Personal exemptions are $3,650 each
they are eligible for the Child Tax Credit which is $1,000 per qualifying child under the age of 17
correct answers 66700.00
A tax that requires a higher income person to pay a higher precentage of his/her income in taxes
is called a ___ tax whereas the ____ tax rate is the rate at which your last dollar earned is taxed
correct answers progressive
marginal
Andrea is managing her finances and has an opportunity to earn some extra money developing a
webpage for a start-up business. The owners of the new business have agreed to pay her $7,500
once the project has been completed. Andrea is in the 15% marginal tax bracket this year but
next year, after she gets married, she will be in the 25% marginal tax bracket. If Andrea pushes to
finish the project this calendar year, her estimated income tax liability on the extra earnings will
be $ ___
and if she takes longer and completes the work next calendar year (after January 1) her
estimated income tax liability on the extra earnings will be $___
. correct answers 1125
1875 (after Jan. 1st)
Invest now or later? Twins Barbara and Mary are both age 27. Beginning at age 27, Barbara
invests $2000 per year for ten years and then never sets aside another penny. Mary waits 10 years
and then invests $2000 per year for the next 30 years. Assuming they both earn 7 percent, how
much will each twin have at age 67?
Step 1: Barbara starts investing $2000 annually for ten years and then stops. When Barbara
reaches age 37 she has accumulated $[___]. correct answers 7739.3690
Perry Hajda had 4 credit cards in his billfold when his wallet was stolen. He reported the cards
missing as soon as he discovered the loss (after 2 days), but the following charges were incurred
before he reported the stolen cards:
, $175--Kohl's
$150--Visa
$35--MasterCard
$120--Shell Fuel Card
How much is Perry's maximum legal liability for the fraudulent charges on these cards? correct
answers 185.0000
A grace period is the time period in days during which deposits or withdrawals can be made and
still earn the same interest as other savings from a given day of the interest period. correct
answers True
A low asset-to-debt ratio is a positive indicator of financial well-being. correct answers True
An ill-advised credit purchase can have negative effects on your budget for years. correct
answers True
Simone and Jake are a married couple filing their income taxes jointly. The have 4 dependent
children, Conner (age 6), Lucy (age 10), Melinda (age 14), and Ben (age 16). Based on the
information provided below, their taxable income is $[ ].
Simone's total income is $60,000 but $5,000 qualify as exclusions
Jake's gross income is $54,000
Together, their adjustments total $9,000
Their itemized deductions total $10,500
The standard deductions for a married couple filing jointly is $11,400
Personal exemptions are $3,650 each
they are eligible for the Child Tax Credit which is $1,000 per qualifying child under the age of 17
correct answers 66700.00
