1) Mark is a customer service representative and is paid \$7.25 per hour. He worked 35 hours last week. Find his gross pay.

2) Paul worked 40 hours last week and earned \$12.45 per hour. Find his gross pay.

3) Paul’s regular pay rate is \$7.25. What is Paul’s time-and-a-half pay rate?

4) Olivia’s regular pay rate is \$14.25. What is Olivia’s double-time pay rate?

5) John is paid overtime for all time worked past 40 hours in a week. Last week he worked 45.6 hours. How many hours will he be paid time-and-a-half rate?

6) Diane works on a 40 hour week basis with time-and-a-half paid for overtime work. Her regular rate is \$18.00 per hour. Last week she worked 49.8 hours. What were Diane’s gross wages for last week?

7) Alex is paid a salary of \$678 a week. How much gross pay does Alex receive for 4 weeks of work?

8) Susan makes \$105,000 a year. If she is paid bi-monthly, what are her gross wages each paycheck?

9) Brad receives a \$0.065 commission for every newspaper he sells. What commission would he earn by selling 2000 newspapers?

10) Janice sells handmade bracelets and is paid a 4% commission on all sales over \$500 for a week. She is paid a weekly salary of \$300. What total earnings did she have for a week in which her sales were \$875?

11) Jaclyn is paid 3% commission on the first \$5000 of monthly sales and 5% on all sales over \$5000. Last month her sales were \$7,250. What was her commission?

12) A salesperson sold a mattress for \$850 and received a \$80 commission. What percent commission did the salesperson receive?

13) Haley is paid \$1.50 for each necklace she makes. What was Haley’s gross pay for last week if she produced the following quantities of necklaces? M-48, T-39, W-58, TR-46, F-41

14) Sam worked 27 days last month as a temporary employee in the shipping department. His per diem pay was \$105. What was Sam’s total earning s for the month?

15) A single cashier’s weekly wages are \$460 with 1 withholding allowance. What federal income tax is withheld?

16) Jill is single and has weekly wages of \$356 a week. She claims 0 withholding allowances. What federal income tax is withheld?

17) Allie earns \$1232 a week. How much would be deducted for the Social Security tax?

18) Olivia’s weekly wage is \$347. What would her Social Security tax deduction be?

19) Alex is single with 1 withholding allowance. He earned a gross pay of \$525 last week. Federal withholding taxes, Social Security taxes of 6.2%, Medicare taxes of 1.45%, health insurance premiums of \$49.69, and union dues of \$13.12 were deducted from his gross pay. Find Alex’s net pay.

20) Dan is married with 0 withholding allowances. He earned a gross pay of \$609 last week. From his gross pay the following were deducted: federal withholding tax, Social Security tax, 6.2%; Medicare tax, 1.45%; and health insurance, \$41. What is Dan’s net pay?

Standard deductions: single = \$5450, married = \$10,900

Exemption: \$3500 each

21) Claire is single and has a gross income of \$34,300. She pays \$3100 into an approved retirement plan. Claire has deductions of \$6400. She has one exemption for herself. Find Claire’s taxable income.

22) Bob and Kathy’s income last year was: net income from business, \$24,565; interest, \$\$2365.14; rental income, \$12,030. Adjustments to income totaled \$4313.12. Find their adjusted gross income.

23) Brett is single, has a taxable income of \$13,951, and his employer deducted \$2400 in withholding taxes for the year. What is his income tax due and the amount owed or refunded?

24) Timmy’s tax return for last year shows a total tax of \$8,298. Timmy’s employer withheld \$8512 from his wages during the year. What refund should Timmy receive?

25) Allyson has calculated her federal taxable income to be \$54,300. She pays a state income tax rate of 4% on her federal taxable income. Find her state income tax.

26) Bill has a taxable income of \$58,900. He pays a city income tax of 2% on taxable income in addition to state and federal taxes. What is Bill’s city tax? What is his state tax?

27) Ben found that his job expenses for last year were: uniforms, \$425; licenses, \$350; commuting costs, \$2450. His total job benefits for the same period were \$62,123. Find his net job benefits.

28) Nina’s gross income is \$33792. She estimates that her job benefits are 28% of her annual wages. She also estimates that her yearly job expenses are special tools, \$847; union dues, \$970; commuting costs, \$1,602; uniforms, \$450. What are her net job benefits?

29) Rita has just graduated from school and is applying for two jobs. The first job pays \$9.50 an hour for a 40-hour week and the second job pays \$11.05 an hour for a 40-hour week. The job benefits are estimated to be 25% of the annual wage for the first job and 22% for the second. Yearly job expenses are estimated to be \$1,480 for the first job and \$1,796 for the second. What were the net job benefits for the first and second job?

30) Rondo earns \$3,750 per month. From those wages, \$312 in federal withholding, \$245.25 in Social Security, \$59 in Medicare, \$104 in state income taxes, and \$23.75 in health insurance are deducted. Find the percentage of gross pay that Rondo takes home to the nearest percent.

31) George earns \$400 per week. He was given a 2% raise. He is a single taxpayer who claims zero withholding allowances. Federal income and FICA (7.65%) taxes are deducted from his wages. How much did his gross wages increase? How much did his net pay increase?

32) Find the interest for six months on \$523.40 at 1.5% annual interest paid semiannually.

Steps to calculating compound interest over several periods:

• Find the interest rate per period.
• Find the number of interest periods.
• Find the multiplier in the compound interest table.
• Multiply the multiplier by the principal.
• Find the difference between the compound amount and the original deposit.

33) What compound interest is paid on a \$2,000 deposit earning 3% interest, compounded semiannually for 3 years?

34) A deposit slip lists these items: (bills) 8 fifties, 22 twenties, 9 tens, 30 fives; (coins) 24 dimes, 18 nickels, 90 pennies; (checks) \$45.67, \$99.12. The depositor received \$35.00 in cash back. What total deposit was made?

35) Ester had a balance of \$3,245.88 in her checking account. She wrote checks for \$58.90, \$110.26, and \$334.75. Her deposits were \$685 and \$220.15. What was Ester’s new balance after these transactions?

36) Julie began the day with a \$788.24 balance in her checking account. During the day she used her debit card to pay \$75 for car repairs and \$84.34 for a clothing purchase. Julie also withdrew \$45 from his account at an ATM machine. What was the balance of Julie’s checking account at the end of the day?

37) George’s checking account has a balance of \$230.24. He plans to make these payments online: rent, \$550; cable bill, \$45.15; and utility bill, \$98.47. Before making the payments, George transfers \$763.38 from his savings to his checking account. What will be the balance of his checking account after all transactions are completed?

38) Maria’s bank statement showed a closing balance of \$1,432.23, no outstanding deposits, and two outstanding checks for \$131.23 and \$86.54. Reconcile her bank statement.

39) On January 30, your check register balance is \$107.87 and your bank statement balance is \$161.96. Interest earned of \$0.43 and an ATM deposit of \$56 also appeared on the statement but had not been recorded in the register. You also find that Check 307 for \$35.29 had been entered in the register as \$32.95. Reconcile the checking account.

40) Alex had \$2500 on deposit for March and April in a money market account. Interest in the account is paid monthly. In March, the account paid 3.5% annual interest. In April, an annual interest rate of 3.75% was paid. Alex had no other deposits or withdrawals from his account. What total interest did Alex earn for the two months?

Effective rate of interest = interest earned in one year/principal

41) Find the effective rate of interest to the nearest hundredth percent if \$60.94 is earned in one year on a deposit of \$975.

Steps to calculating annuities:

• Find the interest rate per period.
• Find the number of interest periods.
• Find the multiplier in the correct table.
• Multiply the multiplier by the original amount.
• Find the amount actually deposited/received
• Find the difference between the annuity amount and the amount deposited/recieved.

42) Janet saves \$75 per month and deposits the money in an account earning 3% annual interest compounded monthly. How much will be in the account after 2 years?

43) What amount must you invest today at 6% compounded annually so that you can withdraw \$5,000 at the end of each year for the next 5 years?

44) Joe’s credit card statement for March 31 showed a previous balance of \$348.77 and new purchases of \$69.99 on 3/10, \$10 on 3/15, and \$32.14 on 3/20. He made a payment of \$252.34 on 3/25. What is Joe’s new balance?

45) When Ashley checked her credit card statement, she found that a sales slip dated 4/2 for \$13.48 was posted as \$13.84. She also found that a purchase for \$23.45 was unauthorized. If the new balance on the statement was \$439.87, what is her correct balance?

46) Lori’s credit card statement for December showed a membership fee of \$50, a late fee of \$24, a finance charge of \$7.56, and an over-the-limit fee of \$10. What was the total cost of the card to Lori in December?

47) Gina decided to switch credit cards in July. When she did, she paid an annual membership fee of \$50. She also paid a balance transfer fee of 6% of her old card’s \$847.28 balance. During the next 12 months, she paid an average monthly finance charge of \$42.44 on her unpaid balance. What was Gina’s total cost for using her credit card for the year?

Step 1: Find the monthly rate (APR/12) or the daily rate (APR/365)—rounded to the ten

thousandths place.

Step 2: Rewrite the periodic rate as a decimal

Step 3: Substitute your variables into the finance charge formula

Finance charge = Balance x periodic rate x number of periods

48) Jessi is charged a finance charge on a credit card balance of \$600. Her card has an APR of 18%. What will her finance charge be if the company uses a monthly periodic rate?

49) George must pay finance charges on a balance of \$1536. The credit card has ana APR of 19%, and uses a daily periodic rate. What will he be charged in finance charges for a 30 day billing cycle?

The August credit card statement for Brent had a previous balance of \$187.43, new purchases and fees of \$192.45, and payments and credits of \$150. The card’s APR is 20% is calculated using a monthly periodic rate.

50) What is Brent’s finance charge and new balance using the previous balance method?

51) What is Brent’s new balance using the adjusted balance method?

Step 1: Find the monthly rate (APR/12) or the daily rate (APR/365)—rounded to the ten

thousandths place.

Step 2: Rewrite the periodic rate as a decimal

Step 3: Substitute your variables into the finance charge formula

Finance charge = Balance x periodic rate x number of periods

52) Bob used his credit card in an ATM to borrow \$350 on a cash advance. His card company charged a cash advance fee of \$10 and a daily periodic interest rate of 0.0345%. If Bob paid the cash advance and finance charges back at the end of 25 days, what was the total finance charge on the cash advance?

53) Xavier’s credit card has an APR of 14% for purchases and 23% for cash advances. They use an average daily balance method with a daily periodic rate for purchases. They use a daily periodic rate for cash advances and a cash advance fee of 3%. In a 31 day billing cycle, Xavier has an average daily balance for purchases of \$154.32. He took a cash advance of \$350 during the billing cycle and must pay finance charges on the cash advance for 25 days. What are his total finance charges?

54) Ricky borrows \$2465 at 7% exact interest for 82 days. How much interest must he pay on the loan and how much will be due at maturity?

55) Sherry signed a promissory note for \$6300 at 13% ordinary interest for 175 days. Find the interest and amount due she will pay when the note is due.

56) Find the interest from December 2 to December 29 on \$600 at 8.5%.

57) Find the interest from January 4 to March 15 on \$3200 at 9%.

58) Find the daily interest factor for \$253 borrowed at 11% exact interest.

59) Find the ordinary interest from November 10 to November 30 on \$800 at 8% interest.

60) A lawnmower has a cash price of \$1250. To buy it on an installment plan, you would pay \$100 down and \$42 a month for 36 months. Find the finance charge.

61) A car sound system that sells for \$175.33 can be bought for \$25 down and \$28.12 a month for 6 months. What is the installment price and by what percent, to the nearest tenth, does the installment price exceed the cash price?

62) The Spalding’s borrowed \$800 on a 1 year simple interest installment loan at 19% interest. The monthly payments were \$74.23. Find the amount of interest, amount applied to the principal, and the new balance for the first monthly payment.

63) Henry borrowed \$600 on a 1 year simple interest installment loan at 17% interest. The monthly payments were \$54.02. Find the amount of interest, amount applied to the principal, and the new balance for the first monthly payment.

64) Troy took out a \$5400 simple interest loan at 7.5% interest for 24 months to buy a car. His monthly payment is \$238.41. After making payments for 12 months, his balance is \$2,841.23. He decides to pay the loan off with his next payment. How much will his final payment be?

65) How much did Troy save by paying off his loan early?

66) Myranda borrowed \$1100 on a 12 month loan with a finance charge of \$92. Find the finance charger per \$100 borrowed of the amount financed and the APR.

67) Find the APR for a loan with a finance charge of \$40.65 per \$500 for 12 payments.

FORMULA CHEAT SHEET

Gross pay= # of hours worked x hourly rate

Time-and-a-half= 1.5 x regular pay rate

Double-time= 2 x regular pay rate

Commission= quantity sold x rate of commission

Commission= sales x rate of commission

Rate of commission= amount of commission/sales

Gross pay = # of pieces produced x piece rate

Gross pay= number of days worked x per diem rate

Tip amount= total bill x tip percent

Tip amount= number of units x tip per unit

FORMULAS:

Net pay = Gross Pay – Deductions

Taxable Income = Adjusted Gross Income – Deductions and Exemptions

Total Employee Benefits = Benefit 1 + Benefit 2 + …

Total Employee Benefits = Benefit Rate x Gross Pay

Total Job Benefits = Gross Pay + Employee Benefits

Net Job Benefits = Total Job Benefits – Job Expenses

FEDERAL WITHHOLDING CHARTS

INCOME TAX DUE TABLE