Marc, a single taxpayer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of birmingham bonds. using the u.s. tax rate schedule for year 2017, what is his average tax rate

The correct option is a. $15,198.

Explanation:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the loan or the largest loan amount that can be gotten =?

P = Monthly payment = $350

r = Monthly interest rate = APR / 12 = 5% / 12 = 0.05 / 12 = 0.00416666666666667

n = number of months = 4 years * 12 months = 48

Substitute the values into equation (1) to have:

PV = $350 * ((1 - (1 / (1 + 0.00416666666666667))^48) / 0.00416666666666667)

PV = $350 * 43.4229559379367

PV = $15,198.0345782779

Rounding to a whole dollar amount, we have:

PV = $15,198

Therefore, the correct option is a. $15,198.