Consumer Mathematics

  Question #1 - Income Tax You would like to have extra spending money for the holidays, so you get a part-time job at your local discount store. The job pays $15 per hour and you work 17 hours per week. Your employer with holds 11% of your gross pay for federal taxes, 5.65% for FICA, and 4% for state taxes. Given this information, answer the following questions. (Assume this is your only job.) What is your weekly gross pay? How much is withheld per week for federal taxes? How much is your net pay? What percentage of your gross pay is withheld for taxes? Question #2 - Annuity Earnings Ricky is saving money in an annuity earning 9% annual interest compounded monthly. If he deposits $400 in the account every month for 10 years, what will the future value of his account equal? How much interest will he have earned? Question #3 - Mortgage Finances Richard and Mia purchased a home in Orlando Florida. A bank financed the purchase with a mortgage that included a 6% annual rate and 30-year term, costing the couple $850/month. Calculate the amount of money the couple borrowed and the amount of interest will they pay over the life of the loan.