Rates for a single taxpayer are 10 of taxable income up to 8,375 and 15 thereafter up to 34,000 . Ernest Silva, a single taxpayer, earned 28,00 . working days as a salesman and 5,00 . working nights as a part-time janitor in a local factory. He itemizes the following deductions: 4,800 interest on his house, 920 state taxes, 800 donation to his church, and 300 donation to the Salvation Army. He takes one exemption of 3,650 . Compute the amount of income tax.
Question 2
Compute the size of the deposit that is required every year to have a future value of 376,500 at the end of 23 years if the interest rate is 5 compounded annually. Use Tables 23-1A and 23-1B or a calculator.
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