2. Salim and Sarah's gross pay is approximately $8500 per month last year. Their net pay is 80% of their gross pay. They live in a two-bedroom semi-detached home and their expenses are listed below. Mortgage: S2850/month Car loan: $324 / bi-weekly Property tax: $936 / quarter year or 3 months Car Insurance: $275 /month Home insurance: S55/month Car fuel: S180 / biweekly Groceries: $610 /month Utilities: S225 /month Cable TV: $65/month Entertainment: S120/month Clothing: S150/month Cellphones: S140/month Internet: S110 / month Maintenance Saving: $250/month Savings: 5% of net pay Vacation Account: $200 / month a) Create a monthly budget for Salim and Sarah and calculate their balance. You may use Google spreadsheet or the template below. (5 points) b) One year later, their net monthly increases by 5%, mortgage increased by 3% and grocery cost increased by 5%. Adjust Salim and Sarah's budget and calculate their new balance. ( points) Salim and Sarah's Monthly Budget INCOME This year After 1 year Amount Amount Net Monthly EXPENSES NOW After 1 year NOW After 1 year Amount Amount Variable Fixed Amount Amount TOTAL VARIABLE TOTAL FIXED TOTAL EXPENSES BALANCE c) Suggest two things Salim and Sarah can do with the extra balance money. (I point) Page 2 of 2 2. Salim and Sarah's gross pay is approximately $8500 per month last year. Their net pay is 80% of their gross pay. They live in a two-bedroom semi-detached home and their expenses are listed below. Mortgage: S2850/month Car loan: $324 / bi-weekly Property tax: $936 / quarter year or 3 months Car Insurance: $275 /month Home insurance: S55/month Car fuel: S180 / biweekly Groceries: $610 /month Utilities: S225 /month Cable TV: $65/month Entertainment: S120/month Clothing: S150/month Cellphones: S140/month Internet: S110 / month Maintenance Saving: $250/month Savings: 5% of net pay Vacation Account: $200 / month a) Create a monthly budget for Salim and Sarah and calculate their balance. You may use Google spreadsheet or the template below. (5 points) b) One year later, their net monthly increases by 5%, mortgage increased by 3% and grocery cost increased by 5%. Adjust Salim and Sarah's budget and calculate their new balance. ( points) Salim and Sarah's Monthly Budget INCOME This year After 1 year Amount Amount Net Monthly EXPENSES NOW After 1 year NOW After 1 year Amount Amount Variable Fixed Amount Amount TOTAL VARIABLE TOTAL FIXED TOTAL EXPENSES BALANCE c) Suggest two things Salim and Sarah can do with the extra balance money. (I point) Page 2 of 2
