1) Victor has a $10,000 cash-value policy purchased 15 years ago when he was 25 years old. The policy will be paid at age 65. Find the cash value of insurance
2) Jen caused a 3 car accident near her home in Akron, Ohio. She has the Ohio minimum liability coverage with no collision or comprehensive coverage. Jason, the driver of one of the other cars, suffered injuries leading to $42,000 in medical bills. No other injuries were suffered. The damage toJen's car was $2000 and she caused $22,000 in damage to the other two cars. How much of the amount of bodily injury and property danage will be covered by the insurance policy? How much of the amount of bodily injury and property damage will be paid for by Jen?
3) Dr.Houselover has an annual income of $129,000. She has monthly payments for auto loan ($300), student loan ($250) and credit card payments ($400). Using a 36 percent back-end ration, what are the monthly mortgage payments (including taxes and insureance) she can afford?
4) Jack earned 6.5% last year on a $7500 investment in taxable bonds. If the applicable tax rate was 25%, what is Jack's after-tax profit?
5) Jules is deciding between a corporate (taxable) bond which has annual return of 5.9% and municipal (tax-free) bond that has an annual return of 4.3%. If jules is in the 25% tax bracket, which bond should she choose?
6) Jim is a 53 year old. He is in the 28% marginal tax bracket and earned 6.25% this year on the funds in his IRA. Ignoring any taxes paid on the original investment, what is Jim's after tax return on his IRA this year?