Questions from Personal Finance

Q: What is the formula for determining the future value of a single

What is the formula for determining the future value of a single sum when using the future value interest factor table? What information must be known to find the correct future value interest factor?...

Q: What is discounting?

What is discounting?

Q: In questions a through d, indicate whether you would use the

In questions a through d, indicate whether you would use the table for determining the future value of a single sum (FVIF), the present value of a single sum (PVIF), the future value of an annuity (FV...

Q: What formula is used to determine the present value of an annuity

What formula is used to determine the present value of an annuity? What does the present value of an annuity indicate?

Q: How would you modify the FVA equation to determine how much you

How would you modify the FVA equation to determine how much you would need to save each month to have a specific amount at a specific time in the future?

Q: Jordan sold a stock that he held for 11 months at a

Jordan sold a stock that he held for 11 months at a capital gain of $10,000. He is in the 25% marginal tax bracket. What taxes will he pay on this gain?

Q: At the beginning of the year, Arianne had a net worth

At the beginning of the year, Arianne had a net worth of $5,000. During the year she set aside $100 per month from her paycheck for savings and borrowed $500 from her cousin that she must pay back in...

Q: What is gross income? List some types of income that are

What is gross income? List some types of income that are included in gross income. What are some types of payments that you might receive that would not be included in gross income?

Q: Jarrod (from Problem 7) has an old TV worth about

Jarrod (from Problem 7) has an old TV worth about $100. Jarrod’s other assets total about $150. What is Jarrod’s debt-to-asset ratio? What does this indicate about Jarrod’s financial position? Data f...

Q: What are capital gains? When is a capital gain considered short

What are capital gains? When is a capital gain considered short term? When is it considered long term? Why is this distinction important?