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