Answered step by step
Verified Expert Solution
Question
1 Approved Answer
undefined 1. The following figures represent Shirley's income and expenses: Wages: full time @$50/hr.; part time (25 hrs/wk) @40/hr. Social Security Tax = 5% of
undefined
1. The following figures represent Shirley's income and expenses: Wages: full time @$50/hr.; part time (25 hrs/wk) @40/hr. Social Security Tax = 5% of total wages Clothing = $250/mo. Mortgage = $800/mo. Trust Fund Income = $650/mo. Property Taxes = $4800/yr. Food = $100/wk. Savings = $365/mo. Medical expenses = $50/wk. Transportation expenses = $150/wk. Credit card expenses = $125/wk A] Based on the figures above what is Shirley's discretionary income (show calculations). B] Shirley would like to purchase a car at the end of the next 12 months. She plans to save a 20% of her discretionary income over that period. She also has a bond that will mature at the end of this year. That bond will pay her $10,000. That money will also be used toward the car purchase. The car costs $39,500. Will Shirley be able to purchase the car at the end of the next 12 months (show your calculations)? If not how many more months must she saveStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started