In each of the following independent cases, determine the taxpayer’s filing status and the number of personal and dependency

In each of the following independent cases, determine the taxpayer’s filing status and the number of personal and dependency exemptions the taxpayer is allowed to claim. a. Alexandra is a blind widow (her spouse died five years ago) who provides a home for her 18-year-old nephew, Newt. Newt’s parents are dead, and so Newt supports himself. Newt’s gross income is $5,000. b. Bharati supports and maintains a home for her daughter, Daru, and son-in-law, Sam. Sam earned $15,000 and filed a joint return with Daru, who had no income. c. Charlie intended to file a joint return with his spouse, Sally. However, Sally died in December. Charlie has not remarried.

This problem illustrates a deceptive way of quoting interest rates called add-on interest

This problem illustrates a deceptive way of quoting interest rates called add-on interest. Imagine that you see an advertisement for Crazy Judy's Stereo City that reads something like this: “$1,000 Instant Credit! 16.5% Simple Interest! Three Years to Pay! Low, Low Monthly Payments!” you’re not exactly sure what all this means and somebody has spilled ink over the APR on the loan contract, so you ask the manager for clarification. Judy explains that if you borrow $1,000 for three years at 16.5 percent interest, in three years you will owe: $1,000 × 1.1653 = $1,000 × 1.58117 = $1,581.17 Page 191 Now, Judy recognizes that coming up with $1,581.17 all at once might be a strain, so she lets you make “low, low monthly payments” of $1,581.17/36 = $43.92 per month, even though this is extra bookkeeping work for her. Is the interest rate on this loan 16.5 percent? Why or why not? What is the APR on this loan? What is the EAR? Why do you think this is called add-on interest?