9. Julie has a low credit rating, plus she was furloughed from her job 2 months ago. She has a new job starting next week and expects a salary to start again in a couple of weeks. Since she is a little short on money to pay her rent, she decided to borrow $100 from a loan company, which will charge her only $10 interest if the $110 is paid no more than 1 week after the loan is made. What are the: (Draw the Cashflow) (a) nominal annual and (b) effective annual interest rates that she will pay on this loan?
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9. Julie has a low credit rating, plus she was furloughed from her job 2 months ago. She has a
new job starting next week and expects a salary to start again in a couple of weeks. Since she
is a little short on money to pay her rent, she decided to borrow $100 from a loan company,
which will charge her only $10 interest if the $110 is paid no more than 1 week after the loan
is made. What are the: (Draw the Cashflow)
(a) nominal annual and
(b) effective annual interest rates that she will pay on this loan?
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- You have just accepted your first full-time job as assistant manager. You will be earning a salary of $625 per week. That sounds like a lot of money, but you know there will be deductions from your paycheck, such as federal income tax, Social Security tax, and medical insurance. Let’s find out how much you will actually make. 1 You are single and claim no allowances. How much .is deducted from your weekly paycheck for federal income taxes? 2.Your state tax income rate is 4.2% on all gross income. How much is deducted from your weekly paycheck for state income taxes? 3.Your local tax rate is 2.1% on all gross income. How much is deducted from your weekly paycheck for local tax? .4.Social security tax is deducted at the standard rate of 6.2%. How much will you pay into Social Security each week? 5..Medicare is deducted at the standard rate of 1.45% on all earnings. How much will your pay into Medicare each week? 6..You know it’s a good idea to have medical insurance.…Like many college students, Diana applied for and got a credit card that has an annual percentage rate (APR) of 15%. The first thing she did was buy a new DVD player for $400. At the end of the month, her credit card statement said she only needed to make a minimum monthly payment of $15. Assume Diana makes her payment when she sees her statement at the end of each month. If Diana doesn't charge anything else and only makes the minimum monthly payments, approximately how many months would it take her to completely pay off the DVD player? Assume that the credit card company compounds interest at the end of each month. O 35.8 months O 37.8 months O 46.3 months O 50.0 months O 32.6 months Diana now realizes she needs to pay more than just the minimum payment (unless she wants to be paying for this DVD player until she graduates). She decides to pay twice the minimum monthly payment ($30 per month), instead. How much quicker will she pay off the DVD player? 19.5 months O 26.4 months O 21.1…Imagine that a student graduated from college with a degree in education, and they got a full-time job in teaching. This work, which usually consists of teaching five days a week, brings in about $3,200 a month. This individual is living with their parents, but have credit card bills, car payments, student loan payments, car insurance payments, etc. Their total debt is $53,000. If they cannot make all the payments due monthly on their debts, which of the following is the best answer? They can file a Chapter 13 and the trustee in bankruptcy will reduce some of their debt and extend it over a longer time. They cannot file for bankruptcy because their debt is too low. O They cannot file for a Chapter 7 Bankruptcy. They will not qualify for a Chapter 13 Bankruptcy. none of these
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