Financial Mathematics- Unit 1: Income and Expenses

Logan's mom was reviewing her receipt from her last shopping trip to the local Mega Mart. On the receipt, F stands for "Food" and T stands for "Taxed." The total for food is $12.26, and the total for non-food items is $17.25. She knows that the state sales tax is 8.25% on non-food items. What was the sales tax amount for the non-food items? Round to the nearest cent, like $5.12.

$1.42

In a year, Ivan earns $10,000 in taxable income from his part-time job. Using the above table, how much federal income tax does Ivan owe?

$1006

Nolan earns $16 an hour and works 100100 hours per month. His employer takes out 25% for income tax and 2% for employment insurance. What is his net monthly pay?

$1168.00

Bob owns a bicycle shop. In 2018, Bob sold 75 bicycles. Of those, 30 were sold for $150 each and 45 were sold for $300 each. All of the bicycles were subject to a 7.5% sales tax. What were Bob's total sales taxes for 2018?

$1350 in taxes

The Chen family sold its house through a real estate agent for $330,000. If the real estate agent gets a 4.5% commission, how much did the Chen family have to pay her?

$14,850.00

Sammy is an hourly employee who makes $26 per hour as an elevator technician. He is paid overtime pay of time-and-a-half for every hour that he works over 40. He worked 50 hours last week. What was his gross pay for the week?

$1430

Chris's gross monthly earning is $3000.$3000. Calculate his net pay (take-home pay) by using the deductions below. Federal Tax: 12% State Tax: 3% Local Tax: 1% Social Security Tax: 6% Medicare Tax: 6%

$2160

Ann has several sources of income. Which would not be considered earned income?

$300.00 per month child support

Darryl went to the mall and purchased a brand new watch. The retail price of his watch was $65.49.If the sales tax rate was 8%, what was the total amount of sales tax that Darryl paid?

$5.24

Harper has budgeted $525 to purchase a new laptop. She found one on sale for $500, and the sales tax is 6.25% in her state. How much will she actually have to pay for the laptop?

$531.25

Stella earns $50,000 in taxable income in a year from her job as a dental hygienist. Using the above table, how much federal income tax does Stella owe?

$6858.50

A married couple filing jointly has a taxable income of $75,000. How much will they pay in federal income taxes?

$8612

Mr. Robinson is planning to buy a house with the appraised value of $250,000. The property tax rate is 37.658. What are his yearly property tax fees?

$9414.50

Andrew was informed by the city tax assessor that the property tax for his house is 24.28 mills. The mill rate is the dollar amount of tax that Andrew must pay for his home. Per how many dollars of the assessed home value is the mill rate applied?

1000

This is a summary of Mia's pay stub: Gross Pay: $56.00 State Tax Withholding: $1.60 Social Security Tax: $2.35 Federal Tax Withholding: $3.68 Medicare Tax: $.81 Savings Deposit: $35.00 Charity Donation: $1.00 What percent of Mia's gross pay goes for taxes?

15%

Anike needs a new pair of athletic shoes for her soccer tryouts. The regular price for the shoes is $129.00. There is a sales tax of 7%. Anike has a budget of $150.00. How much money will Anike have left after this purchase? Round to the nearest cent, like $7.15.

150−(129+129(0.07))=$11.97

Review the federal income tax brackets for married taxpayers filing jointly. If Alice and Ted together have a taxable income of $100,000, what is their tax bracket?

22%

Louis is designing large beaded-wire earrings to sell online. He records the total costs and his research in the following table. If he sells the earrings for $35, how much can he expect in hourly profit? Enter the answer as a number to the nearest hundredth, like this: 42.53

23.46

Use the following paycheck to answer the question. What percent of Zachary's pay do his deductions comprise? Round your answer to the nearest whole percent.

24%

Tamika was just hired at the Grab and Go Convenience store as a stocker. She is paid $8 an hour. She can work 35 hours a week. She is going to save all the money she makes to buy a new phone that costs $650. The total amount of deductions taken from her weekly paycheck is $28. How many weeks will Tamika have to save for to be able to buy the new phone?

3 weeks

Devon earns a base salary of $600.00 per month, plus a 4% commission on his sales. Last month he brought in $15,000.00 in sales. Write an expression to represent his total compensation and calculate how much his total compensation was.

600+.04s; $1200

Financial planners recommend that families save about 5% of their take-home pay. Ed and Sherrie save $90 each pay period from their combined paychecks, which total $1200. What percent do Ed and Sherrie save?

7.5%

Brian's gross earnings for the week of July 8, 2019, are $1227.38. His deductions comprise 23% of his total compensation. What is his net pay?

945.08

Alex is shopping for a new TV. He created a table to help him figure out the best deal. At which store will the television cost the least?

Bestern Buy in Cobb County

Lesson 3

Income Tax

Sophie, Leroy, Jose, and Maddie all work for the same IT company. Match each employee with their type of earned income.

Maddie is an hourly employee.: This employee is paid a specific amount for each hour that they work. Jose works on commission.: This employee is paid a percentage of all revenue that they generate for the company. Sophie is an independent contractor.: This employee does not have payroll taxes withheld from their paycheck. Leroy is a salaried employee.: This employee will often work 50 hours per week but receives the same amount of pay for the weeks that they only work 40 hours.

Which statement correctly explains whether she will receive a refund?

No, because Amy still must pay $18.50 to clear her tax dues.

Lesson 5

Other Income Sources

Mariam wants to rent out her house. She researches similar listings in an online rental marketplace and sees that she can rent her home for $210$ per night or $1300 per month. Mariam's house is near a beach in a moderate-sized city with good weather year-round, a famous aquarium, a water park, and lots of restaurants. To figure out if she should list her home as a short-term rental or a long-term rental, first Mariam divides 1300 by 210. 1300/210=6.2 She needs to rent her home 6-7 nights per month to match the revenue from a long-term rental. Since Mariam lives in a location likely to have tourists, she should find plenty of renters. She lists her home as a short-term rental. In her reasoning, Mariam divided 1300 by 210. If this is correct, explain why. If this is not correct, explain what she should have done.

This is correct. Dividing the rate per month by the rate per night gives the number of nights per month needed for the revenues to match:$/month÷$/night=$/month⋅night/$=# night/smonth

Lesson 1

Types of Earned Income

After working satisfactorily for 6 months, Dave received a 7% raise. His original gross monthly salary was $1083.34. What is Dave's gross annual salary? Round to the nearest cent.

XXX $13,000.08

Keisha works 60 hours in a two-week pay period and grosses $1083.34. In each two-week pay period, $50 of Keisha's salary is withheld to pay for her medical and dental insurance. This $50 is not subject to income tax. If 18% of Keisha's pay goes to her income tax withholding, how much will Keisha take home in four weeks?

XXX $888.34

The 9-1-1 service fee on telecommunications bills is what type of tax? Select all that apply.

business tax service tax fixed tax

Six friends earned side income this month. Match each situation to its type of income.

rental income: Alice earned a fee for the use of an apartment she owns. royalty income: Carl earned a fee to let a company print T-shirts of a character he designed. profit income: Elissa earned money from selling a scarf she knit after she subtracted the costs from the revenue. dividend income: Diana earned money when a company she owns stock in made a profit. capital gains: Ferdinand earned money when he sold his house for more than he paid for it. interest income: Bob earned a fee for loaning his money out.

Match the kind of tax with each scenario.

sales tax: Yvonne bought gloves that cost $10.00. At the register, she had to pay $10.80. service tax: Clyde went to an amusement park and noticed that in addition to the cost of admission, there was an additional tax for admission. payroll tax: Jake got his paycheck today. He worked 40 hours at $20 per hour. His gross pay was $800, but the amount of his paycheck was $623.15. excise tax: State citizens voted to add a 75-cent tax to each pack of cigarettes to pay for programs to help people quit smoking. property tax: Sasha bought a townhouse last year. She received a tax bill from the county showing the value of her house and the amount of tax she owes for the current year.