Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
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Question
Chapter 2, Problem 5FPC
a.
Summary Introduction
To determine: Suggestions that can be offered regarding the career promotion.
Introduction: Identifying job opportunities is important as it gives the individuals the authority accepts or rejects the job offers and promotions based on the advantages as well as disadvantages of the relevant job offers and promotions. It is always better to conduct proper analysis prior saying ‘yes’ to a job offer or a promotion.
b.
Summary Introduction
To determine: Lifestyle factors and benefits and costs issues that may occur with the career promotion and the relocation.
Introduction: Evaluating the changes in the lifestyle factors and benefits and costs issues are important to decide upon the acceptance of the offer as such factors may have an impact towards the employee as well as her family members in the long term.
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Mary's job position is being transferred to Lexington, Kentucky from Orlando, Florida. She andher husband George are currently renting their home in Orlando, but they have decided that they want to purchase a home in Lexington. Mary's annual salary is $48,500. George has also beenable to find employment in Lexington at a factory making $39,000 per year. Mary is a planner and has saved $6200 that she can use towards the down payment on the new house. Use the above information to answer the following questions. Round all answers to 2 decimal places.
1. To save the down payment, Mary deposited monthly in a savings account earning 2.5% compounded monthly. If it took Mary 5 years to save up the down payment,how much money was Mary depositing each month?
2. If Mary and George don't want to spend more than 15% of theirmonthly income on their house payment, what is the maximum monthly payment they can afford?
Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald. She was delighted when
the offer came through at $15.20 per hour. She completed her W-4 stating that she is married filing jointly. Her company will pay her
biweekly for 80 hours (assume a tax rate of 6.2% on $142,800 for Social Security and 1.45% for Medicare).
Calculate her take-home pay for her first check. (Use Table 9.1)
Note: Round your answer to the nearest cent.
Net pay
The
tentative
amount to
withhold is:
с
Married Filing Jointly
$ 0.00
$ 0.00
$76.60
$358.84
$1,134.78
$ 2,584.86
$3,680.22
$ 6,499.82
At least But less
than-
B
A
$0
$ 965
$ 965 $ 1,731
$1,731 $4,083
$4,083 $7,610
$7,610 $ 13,652
$ 13,652 $ 17,075
$17,075 $ 25,131
$ 25,131
Plus this
percentage
D
0%
10%
12%
22%
24%
32%
35%
37%
of the
amount
that the
Adjusted
Wage
exceeds-
E
-
Table 9.1
A
At least But less
than-
TABLE 2-BIWEEKLY Payroll Period
$0
$0
$483
$ 965
$ 1,731 $ 865
$4,083 $2,041
$7,610 $3,805
$…
Se Ri Pak, age 23, recently graduated with her bachelor’sdegree in library and information sciences. She is aboutto take her fi rst professional position as an archivist with a civil engineering fi rm in a rapidly expanding area in the U.S. Southwest. While in school, Se Ri worked part time,earning about $8000 per year. For the past two years, she has managed to put $1000 each year into an individual retirement account (IRA). Se Ri owes $15,000 in studentloans on which she is obliged now to begin makingpayments. Her new job will pay $45,000. Se Ri may beginparticipating in her employer’s 401(k) retirement planimmediately, and she can contribute up to 6 percent of her salary to the plan. Her employer will contribute 1/2 of 1 percent for every 1 percent that Se Ri contributes.
Using time value of money considerations to project what her IRA might be worth at age 63?
Chapter 2 Solutions
Personal Finance (MindTap Course List)
Ch. 2.1 - Prob. 1CCCh. 2.1 - Prob. 2CCCh. 2.1 - Prob. 3CCCh. 2.1 - Prob. 4CCCh. 2.2 - Is college worth the cost? Why or why not?Ch. 2.2 - Prob. 2CCCh. 2.2 - Prob. 3CCCh. 2.3 - Prob. 1CCCh. 2.3 - Give examples of how to identify specific job...Ch. 2.3 - Prob. 3CC
Ch. 2.3 - Explain how to compare salary and living costs in...Ch. 2.3 - Prob. 5CCCh. 2 - Economic Trade-off of Graduate School. Jessica...Ch. 2 - Prob. 2DTMCh. 2 - Prob. 3DTMCh. 2 - Prob. 4DTMCh. 2 - Prob. 1FPCCh. 2 - Prob. 2FPCCh. 2 - Prob. 3FPCCh. 2 - Prob. 4FPCCh. 2 - Prob. 5FPCCh. 2 - Cover Letter. Review Figure 2-6 on page 59 and...Ch. 2 - Prob. 6AIP
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