AccountingHenry makes $13.67/hr. at his job and henormally works 43 hours per week. His expenseseach month are $940/month for rent,$529.26/month for utilities, and $410/month forfood and clothing. He wants to buy a car, butthe payments are $382.74/month. If Henry pays15% of his income to taxes and insurance, canhe afford this new car? Give your answer as theamount of money left after the car payment isadded or give a negative number of the moneyhe earns is not enough. Assume a month is 4weeks.Round to the nearest cent.

Solution Working note Calculation of total income Income per hour =13.67 Hours worked…

e payments are $382.74/month. If Henry pay 5% of his income to taxes and insurance, can e afford this new car? Give your answer as th mount of money left after the car payment is dded or give a negative number of the mone e earns is not enough. Assume a month is 4 reeks

e payments are $382.74/month. If Henry pay 5% of his income to taxes and insurance, can e afford this new car? Give your answer as th mount of money left after the car payment is dded or give a negative number of the mone e earns is not enough. Assume a month is 4 reeks

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 16E

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Accounting
Henry makes $13.67/hr. at his job and he
normally works 43 hours per week. His expenses
each month are $940/month for rent,
$529.26/month for utilities, and $410/month for
food and clothing. He wants to buy a car, but
the payments are $382.74/month. If Henry pays
15% of his income to taxes and insurance, can
he afford this new car? Give your answer as the
amount of money left after the car payment is
added or give a negative number of the money
he earns is not enough. Assume a month is 4
weeks.
Round to the nearest cent.

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