Leyla and Larry Hartley of Columbus, Ohio have decided to start a family next year, so they are looking over their budget (illustrated in Table 3-5 as the young married couple"). Leyla thinks that she can go on half-salary ($2,400 instead of $4,800 per month) in her job as a college textbook sales representative for about 18 months after the baby's birth, she will then return to full-time work. a. Looking at the Hartley's current monthly budget, identify categories and amounts in their budget where they realistically might cut back $2,400. (Hint: Federal and state taxes should drop about $600 a month ($7,200 annually) as their income drops.). The input in the box below will not be graded, but may be reviewed and considered by your instructor blank b. Assume that Leyla and Larry could be persuaded not to begin a family for another five years. What specific budgeting recommendations would you give them for handling (1) their fixed expenses and (ii) their variable expenses to prepare financially for an anticipated $2,400 loss of income for 18 months as well as the expenses for the new baby? The input in the box below will not be graded, but may be reviewed and considered by your instructor blank c. If the Hartley's gross income of $8,830 rises 2 percent per year in the future, what will their income be after five years? Round Future value of a single Amount in intermediate calculations to four decimal places. (Hint: Use Appendix A1 or the Garman/Forgue companion website.) Round your answer to the nearest dollar Sample Monthly Budgets for Various Family Units College Student Single Working Person Young Married Couple Married Couple with Two Young Children Married couple with Two College-Age Children $1,000 $4,400 $4,000 4,800 30 $4,000 4,400 30 $8,000 1,600 80 300 570 51,872 $4,420 $8.830 $8.430 $9.680 70 5380 $ 500 5 250 360 200 Classifications INCOME Salary 1 Salary 2 Interest and dividends Student loan withdrawals Savings withdrawals Total Income EXPENSES Fixed Expenses 4010) retirement savings IRA and Roth IRA contributions Savings automatically withheld Housing Health insurance State income taxes Life and disability insurance Homeowner/renter insurance Automobile insurance Vehicle loan payments Emergency savings Student loan payments Loans Credit card payment Federal income taxes Social Securitas 1,200 1,300 200 900 Soooooooooooooo 200 220 200 130 200 850 1080 670 1,000 720 6an 100 300 200 125 500 300 200 200 220 120 130 0 200 1080 850 1.000 670 730 640 390 100 55.550 135 400 56,230 $6.090 Health insurance State income taxes uite and disability insurance Homeowner/renter insurance Automobile insurance Vehicle loan payments Emergency savings Student loan payments Loans Credit card payment Federal income taxes Social Security taxes Real estate taxes Investments Total fixed expenses Variable expenses Other savings Food Utilities Automobile gas, oil, maintenance Medical expenses Child care Clothing Gifts and charitable contributions Personal allowances Education expenses Furnishings and appliances Personal care Entertainment Vacations Miscellaneous Total variable expenses 888888888888 130 500 230 200 580 600 120 300 60 150 500 250 200 53,450 S 51,060 200 52,740 SO $1,112 $1.872 52.880 $8.430 54.420 Leyla and Larry Hartley of Columbus, Ohio have decided to start a family next year, so they are looking over their budget (illustrated in Table 3-5 as the young married couple"). Leyla thinks that she can go on half-salary ($2,400 instead of $4,800 per month) in her job as a college textbook sales representative for about 18 months after the baby's birth, she will then return to full-time work. a. Looking at the Hartley's current monthly budget, identify categories and amounts in their budget where they realistically might cut back $2,400. (Hint: Federal and state taxes should drop about $600 a month ($7,200 annually) as their income drops.). The input in the box below will not be graded, but may be reviewed and considered by your instructor blank b. Assume that Leyla and Larry could be persuaded not to begin a family for another five years. What specific budgeting recommendations would you give them for handling (1) their fixed expenses and (ii) their variable expenses to prepare financially for an anticipated $2,400 loss of income for 18 months as well as the expenses for the new baby? The input in the box below will not be graded, but may be reviewed and considered by your instructor blank c. If the Hartley's gross income of $8,830 rises 2 percent per year in the future, what will their income be after five years? Round Future value of a single Amount in intermediate calculations to four decimal places. (Hint: Use Appendix A1 or the Garman/Forgue companion website.) Round your answer to the nearest dollar Sample Monthly Budgets for Various Family Units College Student Single Working Person Young Married Couple Married Couple with Two Young Children Married couple with Two College-Age Children $1,000 $4,400 $4,000 4,800 30 $4,000 4,400 30 $8,000 1,600 80 300 570 51,872 $4,420 $8.830 $8.430 $9.680 70 5380 $ 500 5 250 360 200 Classifications INCOME Salary 1 Salary 2 Interest and dividends Student loan withdrawals Savings withdrawals Total Income EXPENSES Fixed Expenses 4010) retirement savings IRA and Roth IRA contributions Savings automatically withheld Housing Health insurance State income taxes Life and disability insurance Homeowner/renter insurance Automobile insurance Vehicle loan payments Emergency savings Student loan payments Loans Credit card payment Federal income taxes Social Securitas 1,200 1,300 200 900 Soooooooooooooo 200 220 200 130 200 850 1080 670 1,000 720 6an 100 300 200 125 500 300 200 200 220 120 130 0 200 1080 850 1.000 670 730 640 390 100 55.550 135 400 56,230 $6.090 Health insurance State income taxes uite and disability insurance Homeowner/renter insurance Automobile insurance Vehicle loan payments Emergency savings Student loan payments Loans Credit card payment Federal income taxes Social Security taxes Real estate taxes Investments Total fixed expenses Variable expenses Other savings Food Utilities Automobile gas, oil, maintenance Medical expenses Child care Clothing Gifts and charitable contributions Personal allowances Education expenses Furnishings and appliances Personal care Entertainment Vacations Miscellaneous Total variable expenses 888888888888 130 500 230 200 580 600 120 300 60 150 500 250 200 53,450 S 51,060 200 52,740 SO $1,112 $1.872 52.880 $8.430 54.420