Question 1. A resident of the United States has a base income of $23,000 after adjustments for deductions. New legislation by Congress would tax this income at a rate of 11 percent. What tax would be due?
Question 2. Find the simple interest on $8537 at 10% per annum for 8 months.
Question 3. Find the simple exact interest on $24,281 at 12 3/4% (per annum) from June 8 of one year to February 14 of the next year.
Question 4. Find the effective rate corresponding to 3% compounded quarterly.
Question 5. What is the ending balance from an initial deposit of $5,000 at 14% compounded monthly for 4 years?
Question 6. Find the amount of interest earned on a deposit of $1,609.25 at 13% compounded monthly for 90 months.
Question 7. Find the present value of $10,425 in 39 months at 13.75% compounded monthly.
Question 8. Find the value of an annuity where $275 is deposited at the end of each quarter for 3 years and the interest rate is 9.5% compounded quarterly.
Question 9. Determine the amount of each payment to be made to a sinking fund with 10 annual payments compounded at 14% annually, in order that enough money will be available to pay off a loan of $5,000.
Question 10. Find the present value of an ordinary annuity with monthly payments of $274.14 for 48 months at 12% compounded monthly.
EC. An alumnus wants to set up a trust (which earns 9% interest compounded semiannually) to provide a grant to his alma mater of $10,000 every six months, beginning six months from now, for six years. How much should be deposited in the trust?