You deposit $2000 in an account earning 6% interest compounded continuously. How much will you have in

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Question:

You deposit $2000 in an account earning 6% interest compounded continuously. How much will you have in the account in 15 years?
Round your answer to the nearest cent.

2. Suppose you want to have $400,000 for retirement in 35 years. Your account earns 9% interest. How much would you need to deposit in the account each month?

3. Suppose you want to have $600,000 for retirement in 20 years. Your account earns 8% interest.
a) How much would you need to deposit in the account each month?

b) How much interest will you earn? Round your answer to the nearest cent.

4. Announcers present music, news, and sports, and may provide commentary or interview guests about these or other important topics. Some act as masters of ceremonies (emcees) or disc jockeys (DJs) at weddings, parties, or clubs.

Many announcers work in radio and television studios. Some announcers are self-employed; others work part time. The median annual wage for announcers was $29,010 in May 2014.

SOURCE: United States. Department of Labor. "Announcers." Occupational Outlook Handbook. 17 Dec. 2015. Web. 8 March 2016.

A newscaster earns an annual salary of $34,600. They want to invest 10% of their monthly paycheck in order to save for retirement in 42 years. If they invest this money at 2% compounded monthly, how much money will they have at retirement?

a) How much will be saved each year?

b) What will be the monthly deposit? Round your answer to the nearest cent.

c) What will be the amount in the account after 42 years?

5. Suppose you invest $200 a month for 7 years into an account earning 8% compounded monthly. After 7 years, you leave the money, without making additional deposits, in the account for another 20 years. How much will you have in the end?

Suppose instead you didn't invest anything for the first 7 years, then deposited $200 a month for 20 years into an account earning 8% compounded monthly. How much will you have in the end?

6. You want to buy a car. The loan amount will be $15,000. The company is offering a 5% interest rate for 36 months (3 years). What will your monthly payments be?

7. Roberto bought a $270,000 house, paying 10% down, and financing the rest at 4.4% interest for 30 years. His monthly payments are $1216.85. How much will he really pay for his $270,000 house?

Robert will pay a total of $ for the house

8. You want to buy a $151,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan at 5.9% interest for the rest.

a) How much is the loan amount going to be?

b) What will your monthly payments be?

c) How much total interest do you pay?

d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be?

e) How much money in interest will you save if you finance for 15 years instead of 30 years?

9. Henry has a credit card that has 21% APR which is compounded monthly. The required minimum payment is 2% of the outstanding balance. Henry typically only pays the minimum payment. After his most recent payment, he had $1900 left on the card.

The credit card company applies the APR to what wasn't paid and sends a the next month's bill (which is called the outstanding balance). This problem approximates what happens for credit card bills.

a) How much will Henry's next credit card bill show for the outstanding balance? $[Hint: Use the FV spreadsheet command: Divide the interest rate by 12 months (as usual), put a 1 in for nper (for 1 month), put a 0 in for PMT (he isn't paying anything more), put what remained on the card after his payment ($1900) for pv]

b) How much is Henry's next minimum payment?

c) Assuming that Henry only pays the minimum what is the amount that remains unpaid?

d) The process will then repeat. Find the new outstanding balance using FV formula as described in part a using the new amount that is unpaid?

e) When minimum payments on credit cards that have high interest rates are made, the outstanding balances from one credit card bill to the next won't show a lot of progress because of the high interest. Let's explore this for Henry. How much did Hery's debt decrease by?

f) What amount of money from Henry's payment in part b went to the credit card company as profit? $

If you have credit card debt, pay more than the minimum if you can.

Here some information from government websites (watch out for people trying to rip you off!): (1) https://dfr.oregon.gov/financial/manage/Pages/debt-management.aspx and (2) https://consumer.ftc.gov/articles/settling-credit-card-debt. Do more research on the ideas suggested in this article: https://www.creditkarma.com/credit-cards/i/best-way-to-pay-off-multiple-credit-cards

10. Rajesh is filing single and he has an adjusted gross income (AGI) of $83,000 for the 2018 tax year. He qualifies for the standard deduction of $12,000. Use the following 2018 Federal tax rate schedule to calculate his 2018 Federal income tax.

If your filing status is single;

and taxable income is more than:	but not over:	your tax is:
$ 0	$9,525	10% OF the taxable income
$9,525	$38,700	$952.50 plus 12% of the excess over $9,525
$38,700	$82,500	$4,453.50 plus 22% of the excess over $38,700
$82,500	$157,500	$14,089.50 plus 24% of the excess over $82,500
$157,500	$200,000	$32,089.50 plus 32% of the excess over $157,500
$200,000	$500,000	$45,689.50 plus 35% of the excess over $200,000
$500,000	_______	$150,689.50 plus 37% OF THE AMOUNT OVER $500,000

Rajesh's 2018 tax is: $
(Round to the nearest dollar.)

What is Rajesh's effective tax rate?

(Write as a percent, rounded to one decimal place.)

11. Graphic designers create visual concepts using computer software or by hand to communicate ideas that inspire, inform, and captivate consumers. They develop the overall layout and production design for various applications such as for advertisements, brochures, magazines, and corporate reports.

SOURCE: United States. Department of Labor. "Graphic Designers." Occupational Outlook Handbook. 17 Dec. 2015. Web. 7 March 2016.

Employee's Rates	Matching Rates Paid bythe Employer	Self-Employed Rates
7.65% on first $118,500 of income 1.45% on income above $118,500	7.65% on first $118,500 paid in wages 1.45% on wages above $118,500	13.3% on first $118,500 of net earnings 2.9% on earnings above $118,500
¹FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income.

Suppose a graphic designer earns $77,000 and is not self-employed. How much will the designer have to pay in FICA taxes?