A saver has the following activity for his savings account. The account pays an annual rate of
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Question:
A saver has the following activity for his savings account. The account pays an annual rate of 6% compounded monthly and uses the average daily balance method of interest calculation. Use this information to answer the next 3 questions. (28 days in February) (do not use a leap year)
Day Balance
February 1-9 $825
February 10-22 $350
February 23-28 $965
- What is the average daily balance?
- What is the total amount of interest earned for the month of February?
- Instead of using monthly compounding, the account compounds interest daily. How much interest will you have earned from February 1-9?
- Keith and Ariel have a gross income of $82,000. Their adjustments are $4600, itemized deductions are $25.600, and the standard deduction is $24,400. Their taxable income is:
- Calculate the annual cost per thousand of a $176,000 term life insurance policy that costs $192/year; to a three-year $8000 credit life policy that charges a lump sum premium of $165. What is cost per $1,000 for the (1) term life insurance and the (2) credit life insurance policy?
- What would the tax liability for June Mayfield be if she has a taxable income of $190,000? (use the tax chart that is near the large tax problem)
- Assume the filer from the previous problem has had $35,000 in income taxes withheld throughout the year. Would this filer owe the government money or receive a refund.
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