1 Jane and Bill Collins have total take home pay of $5100 a month Their monthly expenses total $4050 Calculate the minimum amount this couple needs to establish an emergency fund (LO11 1) Use the information in the Figure It Out box earlier in this chapter to complete the following table (LO11 1) Annual Deposit Rate of Return Number of Years Investment Value at the End of Time Period (derived from the table in the Figure It Out feature) Total Amount of Investment Annual Deposit x Number of years Total Amount of Earnings Investment Value at the End of Time Period Total Amount of Investment $2,000 2 10 $2,000 8 10 $2,000 4 30 $2,000 11 30 Assume you are in the 28 percent tax bracket and purchase a 3 10 percent municipal bond Use the formula presented in this chapter to calculate the taxable equivalent yield for this investment (LO11 4) Assume you are in the 35 percent tax bracket and purchase a 3 60 percent municipal bond Use the formula presented in this chapter to calculate the taxable equivalent yield for this investment (LO11 4) Three years ago, you purchased a corporate bond that pays 5 8 percent The purchase price was $1,000 What is the annual dollar amount of interest that you receive from your bond investment (LO11 5)

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1. Jane and Bill Collins have total take-home pay of $5100 a month. Their monthly expenses total $4050. Calculate the minimum amount this couple needs

1. Jane and Bill Collins have total take-home pay of $5100 a month. Their monthly expenses total $4050. Calculate the minimum amount this couple needs to establish an emergency fund. (LO11.1)

Use the information in the Figure It Out! box earlier in this chapter to complete the following table. (LO11.1)

Annual Deposit	Rate of Return	Number of Years	Investment Value at the End of Time Period (derived from the table in the Figure It Out feature)	Total Amount of Investment = Annual Deposit x Number of years	Total Amount of Earnings = Investment Value at the End of Time Period Total Amount of Investment
$2,000	2%	10
$2,000	8%	10
$2,000	4%	30
$2,000	11%	30

Assume you are in the 28 percent tax bracket and purchase a 3.10 percent municipal bond. Use the formula presented in this chapter to calculate the taxable equivalent yield for this investment. (LO11.4)

Assume you are in the 35 percent tax bracket and purchase a 3.60 percent municipal bond. Use the formula presented in this chapter to calculate the taxable equivalent yield for this investment. (LO11.4)

Three years ago, you purchased a corporate bond that pays 5.8 percent. The purchase price was $1,000. What is the annual dollar amount of interest that you receive from your bond investment? (LO11.5)