You are borrowing money to buy a car. If you can make payments of $320 per month starting one month from now at an interest rate
1 answer:
Answer:
the present value is $12,151.67
Explanation:
The computation of the amount that should be borrowed today i.e. present value is shown below:
Given that
PMT = $320
Rate of interest = 12 ÷ 12% = 1%
NPER = 4 × 12 = 48
FV = $0
The formula is shown below
= -PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $12,151.67
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Answer:
a. The net pay is correct.
Explanation:
Suppose the missing part of the question which is the gross pay and the federal tax is 1020.00 and 107.00 respectively.
Then, Social Security tax 6.2% of the gross pay =
Social Security tax 6.2% of the gross pay = 0.062 × 1020
Social Security tax 6.2% of the gross pay = $63.24
the Medicare tax is 1.45% of gross pay =
the Medicare tax is 1.45% of gross pay = 0.0145 × 1020
the Medicare tax is 1.45% of gross pay = $14.79
the state tax is 19% of federal tax =
the state tax is 19% of federal tax = 0.19 × 107
the state tax is 19% of federal tax = $20.33
Hence, to determine if Juanita's net pay is correct, we have the summation of all our estimated figures minus the gross pay.
i.e
Juanita's net pay = $1020 - $(107 + 63.24 + 14.79 + 20.33)
Juanita's net pay = $1020 - 205.36
Juanita's net pay = $814.64