BUSN 380 DEVRY COMPLETE PROBLEM SET PACKAGE

8. If you borrow $8,000 with a 5 percent interest rate to be repaid in five equal payments at the end of the
next five years, what would be the amount of each payment? (Note: Use the present value of an annuity
table in the Chapter 1 Appendix.)
9. Based on the following data, compute the total assets, total liabilities, and net worth. Liquid assets,
$3,670 Household assets, $89,890 Investment assets, $8,340 Long-term liabilities, $76,230 Current
liabilities, $2,670
10.Which of the following employee benefits has the greater value? Use the formula given in the
“Financial Planning Calculations” – “Tax-Equivalent Employee Benefits” box found in Chapter 2 to
compare these benefits. (Assume a 28 percent tax rate.)
A nontaxable pension contribution of $4,300 or the use of a company car with a taxable value of $6,325.
BUSN 380 DeVry Week 2 Problem Set 2
Problem Set 2
1. Thomas Franklin arrived at the following tax information:
Gross salary, $46,660
Interest earnings, $225
Dividend income, $80
One personal exemption, $3,400
Itemized deductions, $7,820
Adjustments to income, $1,150
What amount would Thomas report as taxable income?
2. What would be the net annual cost of the following checking account?
Monthly fee, $3.75; processing fee, 25 cents per check; checks written, an average of 22 a month.
3. What would be the average tax rate for a person who paid taxes of $4,864.14 on a taxable income of
$39,870?
4. A payday loan company charges 4 percent interest for a two-week period. What would be the annual
interest rate from that company?
5. What is the annual opportunity cost of a checking account that requires a $350 minimum balance to
avoid service charges? Assume an interest rate of 6.5 percent.
BUSN 380 DeVry Week 3 Problem Set 3