Theme: Wages, Taxes, and Forming a Budget Suppose you are single and work for a company that pays you $24/hour for all regular hours and time-and-a-half for any weekly hours exceeding 40 hours. In a typical workweek, you work 44 hours. Assume you are paid biweekly. Find the following for each biweekly pay. 1) [4] Gross Wages 2) [2] FICA 3) [2] Medicare 4) [2] SDI 5) [2] State Tax (31%) 6) [2] Local Tax (1.2%) 7) [6] Federal Withholding (Assume 2 withholding allowances, use percentage method.) 8) [2] Net earnings to the nearest penny 9) [3] What percent of gross is taken away for deductions? Write your answer to the nearest tenth of a percent. Let's go car shopping. You see a S16,500 automobile and it simply has to be yours. You finance the loan after placing $5000 down with 48 equal payments. The bank approved you for a 6% interest rate, compounded monthly 10) [6] What is your monthly payment? 11) [6] Complete the first two rows of the amortization table for this car loan. Balance Amount of Interest for Portion to Principal at Pa Period Principal end of Period Now, let's go house shopping. After a down payment of S20,000, you are approved to borrow $160,000 to purchase a home at an annual interest rate of 5%. 12) [3] Use the chart in the book (chapter 12) to determine your monthly 13) [5] Find your (annual) property taxes if the assessment rate in the 14) [3] Assume that property taxes and homeowner's insurance are payment for a 30-year mortgage. township is 50% and the tax rate based on assessed value is 30 mils. (Note: The value of the home is $180,000). escrowed (paid in monthly installments). If the annual homeowner's insurance premium is $720, find the total amount that you must pay to the bank each month. Many people count on tax returns for income to help them catch up on bills buy something nice, etc. Let's say you claim head of household for tax purposes. With the new house though, your itemized deductions are $12,150. 15) [6] Use the tax table in chapter 13 of the text to calculate your income tax liability. Assume three exemptions. 16) [2] Use the federal withholding from #7 (assuming that this is typical of a paycheck) to find the annual federal tax paid. 17) [4] Determine if you will get a retund or have to pay the IKS atter you file your taxes, and the amount of money. How much do you have to pay/get refunded? And now, for the big question.... 18) [10] Consider what you spend on housing and car alone, and compare it to what you earn. How much is left per month for the other essentials (utilities, gasoline, food, etc.). Do you feel that the income supports the home and auto purchases that were made? Expiain your answer..one paragraph should be sufficient. Use the information from this problem set to answer the question and not your own income/expenses. Theme: Wages, Taxes, and Forming a Budget Suppose you are single and work for a company that pays you $24/hour for all regular hours and time-and-a-half for any weekly hours exceeding 40 hours. In a typical workweek, you work 44 hours. Assume you are paid biweekly. Find the following for each biweekly pay. 1) [4] Gross Wages 2) [2] FICA 3) [2] Medicare 4) [2] SDI 5) [2] State Tax (31%) 6) [2] Local Tax (1.2%) 7) [6] Federal Withholding (Assume 2 withholding allowances, use percentage method.) 8) [2] Net earnings to the nearest penny 9) [3] What percent of gross is taken away for deductions? Write your answer to the nearest tenth of a percent. Let's go car shopping. You see a S16,500 automobile and it simply has to be yours. You finance the loan after placing $5000 down with 48 equal payments. The bank approved you for a 6% interest rate, compounded monthly 10) [6] What is your monthly payment? 11) [6] Complete the first two rows of the amortization table for this car loan. Balance Amount of Interest for Portion to Principal at Pa Period Principal end of Period Now, let's go house shopping. After a down payment of S20,000, you are approved to borrow $160,000 to purchase a home at an annual interest rate of 5%. 12) [3] Use the chart in the book (chapter 12) to determine your monthly 13) [5] Find your (annual) property taxes if the assessment rate in the 14) [3] Assume that property taxes and homeowner's insurance are payment for a 30-year mortgage. township is 50% and the tax rate based on assessed value is 30 mils. (Note: The value of the home is $180,000). escrowed (paid in monthly installments). If the annual homeowner's insurance premium is $720, find the total amount that you must pay to the bank each month. Many people count on tax returns for income to help them catch up on bills buy something nice, etc. Let's say you claim head of household for tax purposes. With the new house though, your itemized deductions are $12,150. 15) [6] Use the tax table in chapter 13 of the text to calculate your income tax liability. Assume three exemptions. 16) [2] Use the federal withholding from #7 (assuming that this is typical of a paycheck) to find the annual federal tax paid. 17) [4] Determine if you will get a retund or have to pay the IKS atter you file your taxes, and the amount of money. How much do you have to pay/get refunded? And now, for the big question.... 18) [10] Consider what you spend on housing and car alone, and compare it to what you earn. How much is left per month for the other essentials (utilities, gasoline, food, etc.). Do you feel that the income supports the home and auto purchases that were made? Expiain your answer..one paragraph should be sufficient. Use the information from this problem set to answer the question and not your own income/expenses