6.5.0: Exercises
- Page ID
- 171717
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)In the following exercises, categorize each expense as a necessary expense or an expense that is a want.
Rent
Dinner at a restaurant.
Car payment
New game system
Gym membership
Electric bill
Heating bill
Phone bill
Netflix
Student Loan Payment
Explain how a necessary expense for one person could be a want expense for another person.
Explain how a necessary expense may be partly a necessary expense and partially a want expense.
In the following exercises, create the budget, including totals and how much the income exceeds or falls short of the expenses, based on the information given.
Per month: paychecks = $3,680, consulting = $900, Mortgage = $1,198.00, Utilities = $376, Cell phone = $67.50, Car payments = $627.85, Car insurance = $183.50, Student loans = $833, Food = $450, Gasoline = $275, Internet = $69, Dining out = $250, Credit cards = $375, entertainment = $300
Per month: paychecks = $2,750, child support = $500, Mortgage = $945.50, Utilities = $195, Cell phone = $37.50, Car payments = $298.23, Car insurance = $163.50, Student loans = $438, Food = $250, Gasoline = $175, Internet = $49, Netflix = $15, After school care = $711, Credit cards = $150, entertainment = $150
Per month: paychecks = $4,385, Rent = $1095, Utilities = $165, Cell phone = $67.50, Car payments = $467.35, Car insurance = $243.75, Student loans = $1,150, Food = $325, Gasoline = $260, Internet = $99, Netflix = $15, Amazon = $23, Gym membership = $49, entertainment = $650
Per month: paychecks = $3,460, Gig job = $173, Rent = $895, Utilities = $165, Car payments = $195.80, Car insurance = $123.30, Food = $265, Gasoline = $185, Internet = $39, Hulu = $15, Amazon = $23, Credit cards $97.60, Entertainment = $600
In the following exercises, determine the amount of money that should be allocated to each of the three categories of the 50-30-20 budget philosophy guidelines.
Referring to Exercise 13: Monthly income = $4,580.00
Referring to Exercise 14: Monthly income = $3,250.00
Referring to Exercise 15: Monthly income = $4,385.00
Referring to Exercise 16: Monthly income = $3,633.00
In the following exercises, evaluate the given budget with respect to the 50-30-20 budget philosophy guidelines.
For the following exercises, Kiera and Logan sit down to make their budget. Kiera works full time as a mental health counselor and sells kids toys on her own. Logan works as a branch manager at a local bank and works part-time at the nearby bar. They collect their financial document to work out their budget. Kiera’s paychecks from her job as a mental health counselor, after taxes and per month, total $3,021. Logan’s paychecks from the bank, after taxes and per month, total $3,827. Kiera’s income from toy sales for the last 3 months were $140, $87, and $475. Logan’s take-home pay from the bartending job for the last 3 months were $540, $310, and $449.
Determine how much income Kiera and Logan have per month.
For the following exercises, Kiera and Logan gather their bills from the last 6 months. Their fixed expenses, with costs, are rent for $1,350, Kiera’s car payment for $275, Logan’s car payment of $380, student loans (they each have students loans) for $934, car insurance for $289, internet service for $39, Netflix for $15, Amazon Prime for $24, gym membership for $99, and cell phones for $250. The variable cost expenses, and their average costs for the last 6 months, are utilities for $370, gasoline for $500, food for $475, clothing for $225, and miscellaneous entertainment expenses for $535. They always pay off their credit card bill and carry no balance.
Create their budget, using the income from Exercise 25.
Categorize each expense as a need or a want. Find the total for each, along with remaining income.
Determine if Kiera and Logan can afford to buy a new computer, which would cost $330 per month for the next 6 months.
In the following exercises, the Federal Paycheck Calculator was used to estimate monthly take-home pay. The annual salary, before taxes and deductions, is provided. Then, the monthly take-home pay after taxes and deductions is given (which means the monthly take-home pay is not just the annual salary divided by 12!). In each case, apply the 50-30-20 budget philosophy to the monthly take-home income. Note: These are based on living in Indianapolis, Indianapolis, unmarried and with no dependents.
Annual salary: $30,000. Monthly take home: $1,938
Annual salary: $40,000.00. Monthly take home: $2,564
Annual salary: $50,000. Monthly take home: $3,144
Annual salary: $70,000. Monthly take home: $4,229
Annual salary: $100,000. Monthly take home: $5,840
Annual salary: 150,000. Monthly take home: $8,506
In the following exercises, the Federal Paycheck Calculator was used to estimate monthly take-home pay. The hourly pay, before taxes and deductions, is provided. Then, the monthly take-home pay after taxes and deductions is given (which means the monthly take-home pay is not just the hourly pay times 174 hours!). In each case, apply the 50-30-20 budget philosophy to the monthly take-home income. Note: These are based on living in Tempe, Arizona, unmarried and with no dependents.
Hourly pay: $12.15 (minimum wage in Tempe, Arizona as of September 2022). Monthly take home: $1,698
Hourly pay: $15.00. Monthly take home: $2,083
Hourly pay: $17.50. Monthly take home: $2,421
Hourly pay: $19.75. Monthly take home: $2,725
Hourly pay: $25.00. Monthly take home: $3,369
Hourly pay: $35.00. Monthly take home: $4,547