Caroline, who files as head of household, received $9,000 of social security benefits. her agi before the social security benefits was $27,000. she also received $200 of tax- exempt interest. what is the amount of taxable social security benefits?

$4,500

Explanation:

First we have to calculate the provisional income which shall be calculated as follow:

AGI amount:                                                         $27,000

Tax exempt interest                                              $200

50% of your social security benefit                       $4,500

(0.50*9,000)

Total provisional income                                       $31,700

Since the amount of provisional income is greater than the base amount of  $25,000 for Head of house hold but less than $34,000, therefore the Caroline will have to pay taxes on 50% of the social security benefits and hence the amount of taxable social security benefit shall be $4,500

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

i might look it up later.