The tax rate that determines the amount of tax that you will be paying on the next dollar of your taxable income earned is called the:

a.

variable tax rate.

b.

average tax rate.

c.

marginal tax rate

question 2

Today, you are purchasing a 20-year, 6 percent annuity at a cost of $120,000. The annuity will pay annual payments starting 1 year from today. What is the amount of each payment?

a.

$11,013.20

b.

$10,462.15

c.

$10,754.40