How much should mr heffernan pay each month

Assignment Help Financial Accounting

Reference no: EM132641031

Time Value of Money

(1) word document with all answers written in the designated answer boxes (50% of the grade)

(2) an excel sheet that shows how you reached these answers (50% of the grade).

Mr. Donald Heffernan, a 35 years old account manager At Wells Fargo has gross annual income after all deductibles of $85,000. Mrs. Heffernan quit her job at Walmart to take care of their twin kids, Luke and Christine. So Mr. Heffernan is the only income earner at his house hold.

Mr. Heffernan is filing income using the following "Married filing jointly" tax rate schedule.

Taxable income over Not Over Tax rate

$0 18,450 10%

18,451 74,900 15%

74,901 151,200 25%

151 ,201 230,450 28%

230,451 411,500 33%

411,501 464,850 35%

464,581 ....... 39.6%

Problem 1: MR. Heffernan thinks it is finally time to start taking care of his student loan that has been outstanding for a while now. He has $120,000 outstanding balance. He wants to make monthly payments to pay off that balance to in 10 years. If the interest rate on this outstanding balance is 3%, how much should Mr. Heffernan pay each month?

Reference no: EM132641031

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