Question

1.) you have a credit card with an initial balance of $3,168 and an interest rate of 12.75 % APR if you make no payments on the car for 3 months how much is your balance by the end of the third month?

A.) $3,571.92
B.) $3,270.06
C.) $3,201.66
D.) $3,860.43

2.) your gross pay is $2,759 your involuntary deductions are FICA 7.65 percent Federal withholding 12% and state withholding 7% how much are you allowed for housing and fixed expenses?
A.) $772.52
B.) $993.24
C.) $728.54
D.) $566.64

3.) You are paid $8.25/hour. You work 35 hours/week for 3 weeks. Your involuntary deductions are FICA (7.65%), federal withholding (13%), and state withholding (9%). How much is your realized income?
A 203.13
B 866.25
C 288.75
D 609.39

Answer 1

The answers are:

1) C - $728.54

2) D - $609.39

3) B - $3,270.06

Answer 2

1.) [B]

2.) [C]

(3.) [D]

Explanation:

1.) Initial amount = $3168

Annual percentage rate = 12.75

per month percentage rate = 1.06%

Interest after 3 months = P*R*T/100

= 3168*1.06*3/100

= 100.74 (aprox)

Balance after 3 months = 3168-100.74

= $3270.06 (aprox) (B.)

2.) Gross pay = $2759

Total interest rate = 7.65%+12%+7% = 26.65%

interest amount= 26.65% *2759 =$728.24 (aprox)

Housing and fixing expenses= $728.54 (C.)

3.) 1 hour = $8.25

1 week= 35 hours

3 weeks = 35*3 hours = 105 hours

Total income= 105 hours = $8.25*105= $866.25

Total interest to be deducted = 7.65+13+9 = 29.65 %

Income after deducting interest = $866.25-256.843 = $609.407

(D.)