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

14. What is the average daily balance?

15. What is the total amount of interest earned for the month of February?
16. Instead of using monthly compounding, the account compounds interest daily. How much interest will you have earned from February 1-9?
17. 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:
18. 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?
19. 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)
20. 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.

Answer rating: 100% (QA)

Answer and detailed step by step explanation 1 The average daily balance is 67183 This is calculated by adding the total amount of money in the accoun... View the full answer