The tooal amount of interest on a loan of 6,000 for 150 days is 210.50.using the ordinary interest(360 days)method,what is the rate of interest on the loan.Round off answer to the nearest hundredth.
I think it is 8.42%
Darrell owns a consulting business and has an estimated annual income of 63,000.His Social Security tax is 12.4%,Medicare is 2.9%,and his estimated federal income tax rate is 22%.How much quarterly estimated tax must Darrell send to the IRS for the first quarter?
I have 5,874.75
Could someone check these to see if I am right.
%Int. = (210.50/6000) 100 = 3.508%
for 150 days.
%Int.=(3.508% / 150 days )360days/yr = 8.42% / yr
Thank You Henry
Annual Taxes = (12.4 + 2.9 + 22)% / 100%)63000 = 23499 /yr.
Quarterly Taxes = 23499 / 4 = 5874.75.
Glad I could help!
To calculate the rate of interest on the loan using the ordinary interest method, we need to find the annual interest rate. Here's how you can do it:
Step 1: Convert the given interest rate of 210.50 for 150 days into an annual rate.
To do this, we use the formula: Annual Interest = (Interest * 360) / (Principal * Time)
Plugging in the given values:
Annual Interest = (210.50 * 360) / (6,000 * 150)
Step 2: Calculate the rate of interest.
Rate of Interest = (Annual Interest / Principal) * 100
Using the calculated values from step 1:
Rate of Interest = ((210.50 * 360) / (6,000 * 150)) * 100
Solving this equation will give us the rate of interest on the loan. The rounded answer to the nearest hundredth is correct, and it is 8.42%.
For the second question regarding Darrell's quarterly estimated tax payment, let's calculate it using the given information:
Step 1: Calculate the total estimated tax payment.
Total Estimated Tax = Annual Income * (Social Security tax rate + Medicare tax rate + Federal income tax rate)
Plugging in the given values:
Total Estimated Tax Payment = 63,000 * (0.124 + 0.029 + 0.22)
Step 2: Calculate the quarterly estimated tax payment.
Quarterly Estimated Tax Payment = Total Estimated Tax Payment / 4
Using the calculated value from step 1:
Quarterly Estimated Tax Payment = (63,000 * (0.124 + 0.029 + 0.22)) / 4
The calculated value for the quarterly estimated tax payment is $5,874.75, which matches your answer. So, your calculations for both questions are correct.