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FUNOMENOMICS MATH CHALLENGE #1
Assume you earn a salary of $70,000 per year.
(1) How much do you pay in Federal taxes under the Bush tax cut plan?
(2) How much would you pay if the tax cut plan expired?
(3) When you compare the two plans, what is the difference in after-tax income?
(4) What is the Federal tax percent increase if the tax cut plan expires?
(5) If at the end of each year, you invest $2,000 of your tax savings in the stocks that earn an average return of 5%, ut have to pay 20% in dividends tax, how much will you have acquired at the end of three years?
(6) If, at the end of each year, you invest $2,000 of your tax savings to earn a guaranteed minimum of 5% per year in a tax-advantaged annuity, how much will you have acquired at the end of three years?
Hint: Rate information provided in fine print below.
ANSWERS
Assume you earn a salary of $70,000 per year.
(1) How much do you pay in Federal taxes under the Bush tax cut plan?
(2) How much would you pay if the tax cut plan expired?
(3) When you compare the two plans, what is the difference in after-tax income?
(4) What is the Federal tax percent increase if the tax cut plan expires?
(5) If at the end of each year, you invest $2,000 of your tax savings in the stocks that earn an average return of 5%, ut have to pay 20% in dividends tax, how much will you have acquired at the end of three years?
(6) If, at the end of each year, you invest $2,000 of your tax savings to earn a guaranteed minimum of 5% per year in a tax-advantaged annuity, how much will you have acquired at the end of three years?
Hint: Rate information provided in fine print below.
ANSWERS 