Math Reasoning Mid Term Review

What is 7.5% written as a decimal?

• 7.5

• 0.75

• 0.075

• None of the above

A $24 shirt is on sale for 25% off. How much is the shirt before tax?

• $6.00

• $18.00

• $30.00

• None of the above

How much is the discounted shirt from #2 with tax included if sales tax rate is 9.75% (rounded to the nearest dollar)?

• $6.59

• $20.21

• $32.93

• None of the above

You have a gross income of $75,000 and contribute 10% of your pay to a tax-deferred retirement account. What is your adjusted gross income?

• $7,500

• $67,500

• $75,000

• None of the above

You have a gross income of $50,000 and contribute 10% of your pay to a tax-deferred retirement account. The standard deduction is $14,600. What is your taxable income?

• $35,400

• $50,000

• $64,600

• None of the above

If you are single with a taxable income is $24,400, calculate the federal income tax you owe using the chart below.

• $1,160

• $2,696

• $2,928

• None of the above

What is a tax credit?

• An amount that reduces your taxable income

• An amount that reduces your taxes owed

• A card the federal government gives you to charge amounts you can’t pay in cash

• None of the above

True or false. FICA taxes are used for Social Security and Medicare benefits.

• True

• False

True or false. Gross pay is your salary prior to any withheld taxes for a pay period. Net pay is the actual amount of your check after taxes have been withheld.

• True

• False

Amount of money that we get paid for lending or investing money, or that we pay for borrowing money __________________.

• Interest

• Principal

• Dividend

• Capital