1. Tim Lewis has an annual income of $38,750 and is paid monthly. Using the federal income tax rate of 15%, what amount annually should Timothy expect to pay in federal taxes? (show all work and write answers in complete senteneces)

2. Tim has another $200 deducted from his monthly paycheck each month for insurance and state taxes. What is the amount Tim takes home each month on his monthly paycheck after all taxes (federal and state) and all insurance costs are paid? (show all work and write answers in complete sentences)

3. Tim rents an apartment for $900 per month, pays his car payment of $450 per month, has utilities that cost $330 per month and spends $476 per month on food and entertainment. Determine Tim's monthly expenses. (show all work and write answers in complete sentances)

4. Tin (who is currently 20 years old) wants to to retire at the age of 65 with !1,000,000 in savings. Determine the monthly payment into an IRA if the APR is 8.5% and he wishes to begin making payments at the following ages (show all work and write answers in complete senetamces ) A - 20 years old. Does Tim have enough money currently to make these monthly payments? Why or why not?

B - 30 years old. Does Tim make enough money currently to make these monthly payments? Why or why not?

C - 40 years old. Does Tim make enough money currently to make these monthly oayemmrs ? Why or why not?

5. Tim has a credit card with an APR 29.99% and a balance of $4,875. He wants to pay $200 each month on the xard . How many months will it take him to clear the debt? (show all your work and write your answers in complete sentances )

6. Write a brief paper no more than one page, typed, double spaced, size 12 font that explains why Tim does or does not have enough money to pay $200 each month on his credit card. If he does have enough, give him some advice as to whether or not paying $200 each month on his credit card is a good idea . If he does not have enouh , give him some advice about what he should do instead. Assume of all his taxes and expenses are listed in #1-3, and assume that he is 20 years old and is wanting to retire at 65 years old with $1,000,000 in savings, as listed in #4 part A.