1.) You applied for your dream job and just found out you got it. Your contract...

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1.) You applied for your dream job and just found out you got it. Your contract states that you will be making $45,000 a year. To budget your expenses, you figure out that your tax rate is 16%, your insurance will be $250 a month, and you want to put 4% away for your retirement. What is your monthly gross income per month, monthly taxes, monthly insurance, monthly retirement and net income (after deducting taxes, insurance and retirement) each month? Monthly Gross - 3,750 Monthly Taxes -$600 Monthly Insurance - $250 Monthly Retirement - $150 Monthly Net Income - $2,750 2.) Doing some research, you decide you want to spend 27% of your monthly net income on an apartment. What is your monthly budget for housing? Housing Allowance - $742.50 3.) You estimate that it will cost you $420 a month to eat and your car payment is $350 a month. What percentage of your net income are your eating expenses and car payment each? % Net Income spent for Food - 15.27% % Net Income spent for Car Payment - 12.73% 4.) After you worked for a year, you received a 10% raise, and your health insurance increased to $300 a month. Now you want to now put 5% away for retirement. What is your new yearly gross income, your monthly gross income, monthly taxes, monthly insurance, monthly retirement and your new net income per month? 10% Raise Gives you a New Yearly Income - New Monthly Gross Income - New Monthly Taxes - New Monthly Insurance - New Monthly Retirement - New Monthly Net Income- 5.) Continuing from number 4, you decided to support your favorite charity by donating $50 a month. What percentage of your new net income is this? 6.) Continuing from number 4, you decide to take some dance lessons for fun, but want to spend no more than 2% of your monthly budget (monthly net income) on the dance lessons. How much can you afford to spend? 7.) How much money do you have left at the end of the month assuming your rent, car payment, food budgets did not increase and you are giving to your charity and paying for dance lessons; how much do you have left for your personal use? 8.) The company that you worked for is being forced to take 4% of your salary a month and put in a Retirement Savings Plan tax free (you will not pay taxes on this 4% - this amount will be taken off the top leaving a new amount as your monthly gross, etc). You still want to keep putting 5% away for retirement as you originally planned. What does your monthly budget look like now? The amount of housing allowance, food and car payment has not changed but the percentage has. Don't forget you are still paying for dance lessons. Monthly Gross - Monthly Taxes - Monthly Insurance - Monthly Retirement - Monthly Net Income- Monthly Net Income Left for Personal Use - % Net Income for Housing Allowance - % Net Income spent for Food - % Net Income spent for Car Payment - % Net Income spent for charity - 1.) You applied for your dream job and just found out you got it. Your contract states that you will be making $45,000 a year. To budget your expenses, you figure out that your tax rate is 16%, your insurance will be $250 a month, and you want to put 4% away for your retirement. What is your monthly gross income per month, monthly taxes, monthly insurance, monthly retirement and net income (after deducting taxes, insurance and retirement) each month? Monthly Gross - 3,750 Monthly Taxes -$600 Monthly Insurance - $250 Monthly Retirement - $150 Monthly Net Income - $2,750 2.) Doing some research, you decide you want to spend 27% of your monthly net income on an apartment. What is your monthly budget for housing? Housing Allowance - $742.50 3.) You estimate that it will cost you $420 a month to eat and your car payment is $350 a month. What percentage of your net income are your eating expenses and car payment each? % Net Income spent for Food - 15.27% % Net Income spent for Car Payment - 12.73% 4.) After you worked for a year, you received a 10% raise, and your health insurance increased to $300 a month. Now you want to now put 5% away for retirement. What is your new yearly gross income, your monthly gross income, monthly taxes, monthly insurance, monthly retirement and your new net income per month? 10% Raise Gives you a New Yearly Income - New Monthly Gross Income - New Monthly Taxes - New Monthly Insurance - New Monthly Retirement - New Monthly Net Income- 5.) Continuing from number 4, you decided to support your favorite charity by donating $50 a month. What percentage of your new net income is this? 6.) Continuing from number 4, you decide to take some dance lessons for fun, but want to spend no more than 2% of your monthly budget (monthly net income) on the dance lessons. How much can you afford to spend? 7.) How much money do you have left at the end of the month assuming your rent, car payment, food budgets did not increase and you are giving to your charity and paying for dance lessons; how much do you have left for your personal use? 8.) The company that you worked for is being forced to take 4% of your salary a month and put in a Retirement Savings Plan tax free (you will not pay taxes on this 4% - this amount will be taken off the top leaving a new amount as your monthly gross, etc). You still want to keep putting 5% away for retirement as you originally planned. What does your monthly budget look like now? The amount of housing allowance, food and car payment has not changed but the percentage has. Don't forget you are still paying for dance lessons. Monthly Gross - Monthly Taxes - Monthly Insurance - Monthly Retirement - Monthly Net Income- Monthly Net Income Left for Personal Use - % Net Income for Housing Allowance - % Net Income spent for Food - % Net Income spent for Car Payment - % Net Income spent for charity -

Answer rating: 100% (QA)

Answer 1 Monthly Income Breakdown Monthly Gross Income 3750 correct Monthly Taxes 600 correct We can assume this is after standard deductions Monthly Insurance 250 correct Monthly Retirement 150 corre... View the full answer