Section PF.6 – Solutions to the Practice Problems

1.
a. $437.40
b. $34.55
c. $33.46
d. $9.62
e. $359.77
f. 17.75%

2.
a. $225.72
b. $19.86
c. $17.27
d. $5.87
e. $182.72
f. 19.05%

3. Owe $1626

4. Refund $1563

5. Your annual take-home pay decreases by $7,776 rather than by $10,800.

6. Your annual take-home pay decreases by $7,392 rather than by $8,400.

7.
a. Charitable Donation: Itemized saves $550, Standard saves nothing.
b. Tax Credit: Itemized will save $2500, Standard will save $2500.

8.
a. Charitable Donation: Itemized saves $1365, Standard saves nothing.
b. Tax Credit: Itemized will save $3900, Standard will save $3900.

9. Jake’s true cost is $2720. Monique’s true cost is $3600.

10. Serenity’s true cost is $380. Moses’s true cost is $440.