Question

Latisha is graduating from Queens College next semester and she just landed a job at a hospital as a compliance manager. She is excited at the prospect of this new opportunity. She would like to get more organized financially because she believes her new salary will now allow her to move into her own place. She talks to her friend, Brad, who sends her his monthly budget. It is a good place to start. Rent in the Bronx, however, is much higher than in New Jersey. Where Brad commutes from, so she will have to budget for $1350 for new apartment per month. Her car payment is also more: $ 285 per month. The good news is that Latisha's new job will be paying her $37.00 per hour. Below is a sample of Brad's budget, which (with the exception of the three changes outline above) Latisha plans to utilize to organize her monthly finances. 4% Brad's Budget Income Salary $23.00 per hour 40 hours per week Expenses Federal Income tax 22% State income tax 3% Social Security/Medicare 6.2% Medical Insurance $ 64.00 per month Life insurance $15.00 per month 401(K) contribution Savings Rent $750 per month Auto payment $ 230 per month Auto insurance $ 160 per month Water $ 24 per month Gas $60 per month Electricity $75 per month Cable/ Internet $ 140 per month Phone/ Cellphone $93 per month Other Utilities $ 34 per month Round all of your answers to the nearest dollar (no cents). 4. What is Latisha's weekly salary (post-taxes and deductions)? Assume the deductions are per week (per pay period) 5. What is Latisha's monthly salary (post-taxes and deductions)? Remember that her rent and car payment are different from Brad's 7. Suppose Latisha owes $900 a month in credit card payments. How much of her take home pay (discretionary Funds) is now left? 8.If she wanted to save 5% of what was left after making her credit card payments, how much would that be? 9.After Latisha has paid all of her bills and contributed to her savings. What is she left with for groceries and incidentals? Divide this number by 4 weeks to get the per week amount she is allotting to groceries, shopping, hair products/haircuts. Entertainment etc.?

Answer 1

Latish salary : 37* 40= 1480

less medical insurance 16

less life insurance 3.75

net taxable income per week = 1460.25

Less taxes = 31.20% of 1460.25= 455.60

Ne Income = 1004.65