Questions from Personal Finance

Q: Matt is self-employed as a carpenter. He made $

Matt is self-employed as a carpenter. He made $42,000 after expenses in 2015. How much did he contribute to FICA taxes?

Q: Jarrod is a college student. All of Jarrod’s disposable income is

Jarrod is a college student. All of Jarrod’s disposable income is used to pay his college-related expenses. Although he has no liabilities (Jarrod is on a scholarship), he does have a credit card that...

Q: Angela earns $2,170 per month before taxes in her

Angela earns $2,170 per month before taxes in her full-time job and $900 before taxes in her part-time job. About $650 per month is needed to pay taxes. What is Angela’s disposable income? Why is it i...

Q: Angela (from problem 1) inspects her checkbook and her credit

Angela (from problem 1) inspects her checkbook and her credit card bills and determines that she has the following monthly expenses: Rent………..……………….….$500 Internet……………………………30 Electricity………………………....

Q: Stuart is in the 25% tax bracket. Recently, he

Stuart is in the 25% tax bracket. Recently, he sold stock that he had held longer than a year for a gain of $20,000. How much tax will Stuart pay on this gain?

Q: Angela makes a budget based on her personal cash flow statement.

Angela makes a budget based on her personal cash flow statement. In two months, she must pay $375 for tags and taxes on her car. How will this payment affect her net cash flow for that month? Suggest...

Q: From the information in Problems 1 through 3, how much can

From the information in Problems 1 through 3, how much can Angela expect to save in the next 12 months? Data from Problem 1: Angela earns $2,170 per month before taxes in her full-time job and $900...

Q: The Sampsons realize that the first step toward achieving their financial

The Sampsons realize that the first step toward achieving their financial goals is to create a budget capturing their monthly cash inflows and outflows. Dave and Sharon’s combined in...

Q: Jesse has just learned that she won $1 million in her

Jesse has just learned that she won $1 million in her state lottery. She has the choice of receiving a lump-sum payment of $312,950 or $50,000 per year for the next 20 years. Jesse can invest the lump...

Q: The Sampsons realize that the first step toward achieving their financial goals

The Sampsons realize that the first step toward achieving their financial goals is to create a budget capturing their monthly cash inflows and outflows. Dave and Sharon’s combined income is now about...