1.

You are planning to buy a house in New Jersey. You put a 20% down payment, and 15-year mortgage rates are at 4.2% -Price of the house is $400,000.

Answer 1. Calculate the monthly payments.

Answer 2. Calculate the 1st month interest payment.

Answer 3. Calculate the 1st month principal payments

2.

Lisa started to put away $4000 into her traditional IRA at age 22 until age 30. By age 30 she stopped contributing to the plan. If her average rate is 8% rate of return, how much will she have in her retirement fun at age 60?

Place answer in the box below and use 2 decimals.

3.

What is the marginal tax bracket? A marginal tax bracket is the:

		a. row in the tax table. A progressive tax system means the lower an individual's income, the higher the percentage of income tax paid.
		b.Tax rate imposed on any income earned. A progressive tax system means the lower an individuals income, the higher the percentage of income tax paid.
		c. tax rate imposed on any additional (marginal) income earned. A progressive tax system means the higher an individual's income, the higher the percentage of income tax paid.
		d. range of income in a tax bracket. A progressive tax system means the higher an individual's income, the higher the percentage of income tax paid.

4.

What are itemized deductions?

		a. medical expenses and reimbursements of moving expenses
		b. veteran benefits and reimbursement of moving expenses
		c. real estate taxes and medical expenses
		d. veteran benefits and real estate taxes