Karen owns 300 shares of stock at the price of $90 a share and she would like to sell it now for $130 a share. She is in the 25% tax bracket.  She has owned it for 13 months.  How much will Karen realize if she sells the stocks? How much would she have earned if she sold it at 9 months , assuming her bracket wouldn't change?

 2. When would you recommend using an individual account, vs. a joint tenancy with right of survivorship account,  vs. a tenancy-in-common account?

 3. What is the difference between a Roth IRA and a Traditional IRA?

 4.Fred Mercury received a raise after his first year on the job to $45,800 from his initial salary of $44,000. The inflation rate averaged 2.8% for the year.

a. What was Fred's raise stated as a percentage?

b. As a percentage, what was Fred's real raise if you consider inflation?
 

5. Explain the difference between a fixed and variable expense. Provide at least 5 examples of each. Discuss ways you can account for both in budgeting and how to control expenses in general.