1. Consider the following question and determine what you need to solve: Phil has $2,000 and he needs $8,000 in 8 years. How much does he have to put in each year, starting a year from today, to reach his goal if he earns a 5% rate of return? So what are we solving for?

a.N

b.pv

C.pmt

d. rate

1. Ben and Jack both earned $60,000 this year. Ben (age 30) is married with two children, and Jack (age 68) is single with no dependents. Which of the following is true regarding the amount of Social Security taxes they will pay?

a.They will pay the same amount of Social Security taxes.

b.Jack will pay less Social Security taxes because he is over age 65.

1. Which of the following is not a tax filing status?

a.head of household

b. qualifying widower with dependent children

c. married filing jointly

d. head of business

4.For tax purposes, head-of-household refers to

a. a widow(er) with no dependents but with debts from death of spouse three years earlier.

b. the person with the larger income when a couple is filing a joint return.

c. a single individual who owns a home

d. a single individual with dependents.