Discussion 1
Average tax is the taxes you paid that divided by your total income. Marginal tax is the tax you will pay on your next dollar of income. The part of your income that falls within each tax bracket is taxed at the rate that specified for that tax bracket. That's why, your average percentage of your income that you pay in taxes will always less than the marginal tax rate of that tax bracket your income falls within.
Discussion 2
What is the difference between your marginal tax rate and your average tax rate?
For each capter I attach and post PPT and the Lecture Notes. for chapter 4 and 5 in case you need them
Chapter 5 Lecture Notes
THE BANKING SERVICES OF FINANCIAL INSTITUTIONS
CHAPTER 5 OVERVIEW
Using savings plans, checking accounts, and other financial services is a primary personal financial planning activity. This chapter starts with an overview of these services followed by a discussion of the changing environment of financial services caused by technology and economic conditions. Next, discussion of the different types of financial institutions is offered along with the factors to consider when selecting one. Coverage of choosing and using savings plans includes material on the types of accounts that are available. Finally, selection and use of checking accounts is presented.
LEARNING OBJECTIVES
Obj. 1 Analyze factors that affect selection and use of financial services.
Financial products such as savings plans, checking accounts, loans, and trust services are used for managing daily financial activities. Technology, opportunity costs, and economic conditions affect the selection and use of financial services.
Obj. 2 Compare the types of financial institutions
Commercial banks, savings and loan associations, mutual savings banks, credit unions, life insurance companies, investment companies, finance companies, mortgage companies, pawnshops, and check-cashing outlets may be compared on the basis of services offered, rates and fees, safety, convenience, and special programs available to customers.
Obj. 3 Compare the costs and benefits of various savings plans
Commonly used savings plans include regular savings accounts, club accounts, certificates of deposit, interest-earning checking accounts, money market accounts, money market funds, and U.S. savings bonds.
Obj. 4 Identify the factors used to evaluate different savings plans.
Savings plans may be evaluated on the basis of rate of return, inflation, tax considerations, liquidity, safety, restrictions, and fees.
Obj. 5 Compare the costs and benefits of different types of checking accounts.
https://www.dropbox.com/s/c5x9543dknbcz3w/Attachments.rar?dl=0