Option #1: Consumer Mathematics Option 1

Question #1 - Income Tax

Compute the FICA taxes for a self-employed individual who make an annual net profit of $153,000.If the same person's net income was reduced to $103,000, what would be the FICA taxes for those earnings?

Question #2 - Annuity Payment

Jake is saving money for a down payment on a car. He needs $1,800 in 10 months to make his down payment and is saving money in an annuity yielding an annual interest rate of 7% compounded monthly. If the annuity requires that Jake make monthly investments, what annuity payment must Jake make to save enough for his down payment?

Question #3 - Mortgage Financing

Paul wants a home that costs $195,000.He wants to finance the home for 15 years with a 5% annual rate mortgage. He plans to

Requirements:

• Show all your work so that the instructor clearly sees how you solved the problem.
• Make sure your final answer is clear and visible.