Sanderson is a bus driver who earns a monthly gross income of $3,500. His wife Norma is the manager of an automotive parts store and she earns gross income of $2,250 every two weeks. The couple has living expenses, including their mortgage and property tax, of $3,000 a month. They have other debt payments totalling $900 per month and they invest $900 a month to their registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs). Their remaining monthly discretionary expenses total $1,200 per month. Sanderson has an average tax rate of 20% and Norma’s is 25%. What is the couple’s monthly cash flow?

Answer rating: 100% (QA)

Calculations for couples monthly cash flow Gross Income of Sanderson 3500 Less tax rate 20 700 Inc... View the full answer