Show your work (Show the formula, the values of the variables in the formula, and the result of the formula).

Final answers should be rounded to the nearest cent (two decimal places). Beware of rounding intermediate results.

1. A resident of the United States has a base income of $23,000 after adjustments for deductions. New legislation by Congress would tax this income at a rate of 11 percent. What tax would be due?

2. Find the simple interest on $8537 at 10% per annum for 8 months.

3. Find the simple exact interest on $24,281 at 12 3/4% (per annum) from June 8 of one year to February 14 of the next year.

4. Find the effective rate corresponding to 3% compounded quarterly.

5. What is the ending balance from an initial deposit of $5,000 at 14% compounded monthly for 4 years?

6. Find the amount of interest earned on a deposit of $1,609.25 at 13% compounded monthly for 90 months.

7. Find the present value of $10,425 in 39 months at 13.75% compounded monthly.

8. Find the value of an annuity where $275 is deposited at the end of each quarter for 3 years and the interest rate is 9.5% compounded quarterly.

9. Determine the amount of each payment to be made to a sinking fund with 10 annual payments compounded at 14% annually, in order that enough money will be available to pay off a loan of $5,000.

10. Find the present value of an ordinary annuity with monthly payments of $274.14 for 48 months at 12% compounded monthly.

EC. An alumnus wants to set up a trust (which earns 9% interest compounded semiannually) to provide a grant to his alma mater of $10,000 every six months, beginning six months from now, for six years. How much should be deposited in the trust?