You Are Looking for a New Truck and See the Following

question 57

Multiple Choice

You are looking for a new truck and see the following advertisement."Own a new truck! No money down.Just five easy annual payments of $8000." You know that you can get the same truck from the dealer across town for only $31,120.The interest rate for the deal advertised is closest to:

• A)9%.
• B)8%.
• C)8.5%.
• D)10%.

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Definitions:

Self-Employed Health Insurance

A tax deduction available to self-employed individuals for premiums paid on medical, dental, and long-term care insurance for themselves and their dependents.

Above-The-Line

refers to deductions that taxpayers are allowed to subtract from gross income to arrive at the adjusted gross income, which are beneficial as they are not subject to itemized deductions limitations.

Child Support Payment

Payments made by a non-custodial parent to support their child or children's living expenses.

Alimony Payment

Payments made to a spouse or former spouse under a separation or divorce agreement, which can be deductible for the payer and reportable as income for the recipient, under certain conditions.