Ed and Marta are paid $2 comma 410 after taxes every month. Monthly expenses include $777 on housing and utilities, $395 for auto loans, $164 on food, and an average of $713 on clothing and other variable expenses. Assuming that they save excess funds, calculate and interpret their savings ratio. Hint: Prepare an income statement, and then compute the ratio.
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- Ed and Marta are paid $2,440 after taxes every month. Monthly expenses include $860 on housing and utilities, $359 for auto loans, $174 on food, and an average of $712 on clothing and other variable expenses. Calculate and interpret their savings ratio. The amount of Ed and Marta's income available for savings and investment is $?. Round to the nearest dollar.Angela's monthly disposable income is $1,749. She has monthly expenses of $1,548 (including recreational expenses of $219) and net cash flow of $201 per month. Angela analyzes her personal budget and decides that she can reduce her recreational spending by $48 per month. If Angela is saving $249 per month, what is her savings rate (i.e., savings as a percentage of disposable income)? Angela's savings rate is ___%. (Round to two decimal places.)Mike and Teresa have a monthly gross income of $6,167, but they pay $502 per month in taxes. They also pay $2,974 per month in various loan payments. What is their debt service ratio? (Keep 2 decimal places)
- Diana has determined the following information about her own financial situation. She has to pay a monthly rent of $1,488, her monthly expenditure on food is $596, the phone and internet bill for the month was $55, the electricity bill for the month was $60; she spends on average $316 per month on eating out. Gasoline and monthly parking costs her $159 and her personal computer is valued at $1,067. Diana's checking account is worth $2,473 and her savings account is worth $2,393. She owns her own house that has a market value of $211,983 and her car is worth $16,008, of which she still owes $6,122 to the local bank. She pays $235 per month for her car loan. She has household possessions worth $7,109 and a home sound system worth $1,717 and she has a retirement account with $31,294 in it. She has a monthly income of $5,604. She has a mortgage of $127,571 with a payment of $550 per month, an educational loan with a balance of $14,064 and payments of $279 per month, and a MasterCard credit…An individual has monthly expenses of $1,800 for rent and $1,000 for groceries, transportation, and other necessary expenses.Which average return should the individual expect to match 25% of yearly expenses on a $100,000 investment?The Carp family makes a $30,000 down payment on a $150,000 home. They finance it for 15 years at 3 7/8%. If annual taxes are $2,970 and homeowners insurance is $940, what will their total PITI payment be? If the bank charges 2 discount points, how much will the Carp family pay for them? Referring to question #15, if the Carp's have a gross monthly income of $5,600 and total fixed monthly expenses of $2,720, which includes their house payment, calculate the housing ratio and the debt to income ratio. Do they qualify?
- Louise Mclntyre's monthly gross income is $3,100. Her employer withholds $780 in federal, state, and local income taxes and $330 in Social Security taxes per month. Louise contributes $180 each month for her IRA. Her monthly credit payments for VISA and MasterCard are $105 and $100, respectively. Her monthly payment on an automobile loan is $335. a. What is Louise's debt payments-to-income ratio?Kerry and Andy Zell are retired and after saving their entire life, they have $230,000 in a savings account paying 3% compounded daily. What is their gain or loss in purchasing power in a year in which the CPI is 5%?Angela's monthly disposable income is $3,188. She has monthly expenses of $2,869 (including recreational expenses of $404) and net cash flow of $319 per month. Angela makes a budget based on her personal cash flow statement. In two months, she must pay $389 for tags and taxes on her car. How much can Angela expect to save in the next 12 months?
- Alice makes $40,800 per year before taxes, which equal $9995 total for state income tax and all federal taxes. Alice pays $500 per month in rent, $200 per month in student loans, $480 every six months for insurance, about $25 per week in groceries, roughly $150 per month for entertainment, and exactly $70 per month for utilities. Assume 4 weeks in a month. What is her debt to income ratio?Sheila Spinney, a recent college graduate, receives a salary of $2976 each month. She pays (3)/(8) of this amount in taxes, social security, and a retirement plan. Of the remainder, (9)/(10) goes for basic living expenses. How much money remains?.Louise's monthly gross income is $2, 300. Her employer withholds $460 in federal, state, and local income taxes and $184 in Social Security taxes per month. Louise contributes $92 per month for her IRA. Her monthly credit payments for Visa, MasterCard, and Discover cards are $43, $33, and $20, respectively. Her monthly payment on an automobile loan is $353. What is Louise's debt payments to income ratio?