Question

Your client, age 29 and unmarried, came into your office today. She provided you with the following information: Her income is $76,000. She contributes 6% of her salary to a 401(k), receiving a 3% salary match from her employer. She also saves $250 per month into a Roth IRA. She has fixed expenses of $28,500 and discretionary expenses totaling $1,500 per month.
Her federal income tax rate is 15%, State is 5%, Social Security and Medicare (FICA) is 7.65%
She has cash assets totaling $12,500, non-retirement investment assets of $22,500 (with a goal to use the money for a house downpayment in the next year or two), retirement-related investment assets of $27,000, and personal property worth an estimated $39,000 (including her car, currently estimated to be worth $21,000). She rents and does not own a home just yet. Her only debt is an auto loan, in which the original principal balance was $20,000, financed at 3.00% for 4 years (paid monthly). She’s paid 28 months as of today.

What is her total savings rate? (2 pts)

What is her monthly payment on her auto loan? (2 pts)

How much total principal does she have left to pay off on her auto loan as of today? (1.5 pts)

How much of her auto loan is considered short-term debt to be paid off in the next 12 months? (1.5 pts)

What is her current net worth? (2 pts)

Answer 1

savings Rate = - Savings Disposable income. Disposable income = $76000 miques tarees. (15•2+5%+7.651) = $54986. sarionys - = 250 x12 $ 7500 . + 76000 x64 Savings Rate = 1500 54986 13.64% = & Monthly payment of auto loan $ 20000 AAE (31/127,48 monina) $442.69. = Remain ing months = 20 montry Total Principal left = $20000 - 11374.4793_B; = $8625.52 + The amount of c amount of $11374.4793_ha sbeln witha cft came with found out using compet

function in Excel 7 Shotturnauto loan _ 442.69_X 12 months -= $5312.28 current mee worth = Avet - liabilirio = 12500 + 22500 + 27000 + - 39000 - 8625.52 = $92374 48. Scanned with CamScanner