As part of his cash management plan, Jose Ramirez invested money in a 5 year CD paying 2 percerit interest. Assume that two years after the purchase of the CD. the economy enters a boom period, and the prices of goods and services rise at an annual inflation rate of 5 percent (a) Whatrate is Jose actually earning on this investment if he has to pay 20 percent income tax on the interest 0.1606 O 0.16% 0% 2x You created a budget for this year assuming that your variable expenses will be 4.00% higher than they were last year. If it turns out that inflation is actually 5.00% for the year, how much budget variance per month will this cause if your monthly variable experises averaged $1600 per month last year? O +$16 O $64 $16 O +$BO Approximately how long will it take to double your money if you can earn 29% per year? 29 years O 1 years O 2 years 28 years Sharon and Brian are planning their budget for the next year. Their monthly fixed rate mortgage payment is currently $1500 with monthly utilities amounting to $150. Assuming an inflation rate of 3%, what should they project for next year? O Mortgage payment of $1500 and taxes plus insurance of $155 Mortgage payment of $1545 and taxes plus insurance of $155 O Mortgage payment of $1545 and taxes plus insurance of $150 O Mortgage payment of $1500 and taxes plus insurance of $150 The Kenneths' current year budget includes $19000 for their fixed mortgage payments and $11000 in variable expenses. If they estimate inflation at 3%, their budget forecast for next year will be O $11330. O $33000 $30000. $30330 John and Patricia want to have liquid assets of at least six times their monthly expenses as an emergency fund. They currently have $3900 saved. Their total annual expenses equal $62400. How much more do they need to save? O $58500 O $5200 O $31200 $27300 You are in the 24 percent marginal tax bracket and itemize deductions. What impact will an additional $1300 of itemized deductions have on your federal income taxes owed? It will have no effect on my taxes owned It will increase my taxes owed by $312. O it will reduce my taxes owed by $312 It will reduce my taxes owed by $1300. Cassandra is 19 years old. Her parents claim her as a dependent on their taxtorm, and her carned income this year was 513.000. Does she need to file a tax return? No, because her parents chim her as a dependent No, because he income was under $13.200. Yes, because she is over age 18 Yes because her income exceeded the limit for not having to nie The standard deduction for married couples filing a joint tax return is O twice the standard deduction for single filers. O the same as the deduction for head of household. O less than twice the standard deduction for single filers. O more than twice the standard deduction for single filers. If the total of your annual expenses in certain allowed categories exceeds the standard deduction for your federal filing status, you can O take a personal exemption. O report itemized deductions on Schedule A and subtract the allowed total from your adjusted gross income. O subtract the difference from the standard deduction and itemized deductions from your taxable income O only subtract the amount of the standard deduction from your adjusted gross income. Federal income tax returns must be: O filled out by hand, if not completed electronically. O typed or completed electronically. O typed if not completed electronically, O filled out by hand, typed, or completed electronically. Linda started a new job with a salary of $51000. If she contributed $3200 to her employer-sponsored retirement plan and $6700 to her employer health care plan during the year. What taxable income will her employer report to the IRS on the W-2 statement at the end of the year? O $51000 $41100 O $47800 $44300 Margaret sold some stocks for a profit of $3700 after holding them for 7 years. If she is in the 22% tax bracket, how much tax will she owe on these transactions? O $740 O $555 O $814 $0 In order to ensure that you'll pay the lowest tax rate on any proht you make from the sale of an investment, you should own the investment for 6 months e Textbook a 9 months 6 months 18 months Save for Liter 12 months ninutes ago Attempts:0 of 1 used Submit If the U.S. tax system were suddenly reformed to include a flat tax of 15 percent on all income. would be the most likely to pay more income taxes than under the current system. households e Textbook and Media median-income high-income average income low-income A new employee decides to participate in her employer's health plan and pays $550 per month (pretax). This employee is saving per year if she is in the 24% tax bracket O $550 O $6600 $3300 $1584 Kenneth contributed $1600 to his dependent care spending account last year. He used all the money for after-school care. How much did he save last year it his marginal tax rate is 24% and his average tax rate is 11%? $176 O $1600 $208 $384