Do you have a total or gross income at 3800 each month your deductions are Fica 7.65%, federal tax 12.25% and state tax 9.1% using your realized income what is your monthly spending budget for housing 28% in total fixed expenses 36%.
First, we need to calculate the deductions from the gross income:
Fica deduction = 7.65% * 3800 = $290.70
Federal tax deduction = 12.25% * 3800 = $465.50
State tax deduction = 9.1% * 3800 = $345.80
Total deductions = $290.70 + $465.50 + $345.80 = $1,102
Realized income = Gross income - Total deductions = $3,800 - $1,102 = $2,698
Now, we can calculate the spending budget:
Housing budget = 28% * $2,698 = $755.44
Total fixed expenses budget = 36% * $2,698 = $971.28
Monthly spending budget = Housing budget + Total fixed expenses budget = $755.44 + $971.28 = $1,726.72
Therefore, the monthly spending budget for this person is $1,726.72.
Do you have $2300 in credit card debt with an APR of 17.5%. You have $400 set aside each month as a payment towards that credit card at the end of the first month. How much interest is earned and after your payment, how much of your balance remains? Then do the same calculations for month 2.
For the first month:
Interest earned = (17.5%/12) * $2300 = $33.96
Balance before payment = $2300
Balance after payment = $2300 - $400 = $1900
Balance after interest = $1900 + $33.96 = $1933.96
Therefore, after the first month, $33.96 interest is earned and the remaining balance is $1933.96.
For the second month:
Interest earned = (17.5%/12) * $1933.96 = $28.39
Balance before payment = $1933.96
Balance after payment = $1933.96 - $400 = $1533.96
Balance after interest = $1533.96 + $28.39 = $1562.35
Therefore, after the second month, $28.39 interest is earned and the remaining balance is $1562.35.
You’re going to buy a house for 225,000. You are making a 20% down payment. Your interest rate is 5.4%. How much is your loan amount? How much interest is accrued after your first month?
To find the loan amount, we need to subtract the down payment from the house price:
Loan amount = $225,000 - 20% * $225,000 = $180,000
To calculate the interest accrued after the first month, we need to first find the monthly interest rate:
Monthly interest rate = 5.4% / 12 = 0.45%
Then, we can calculate the interest accrued on the loan amount after the first month:
Interest accrued = 0.45% * $180,000 = $810
Therefore, the loan amount is $180,000 and after the first month, $810 interest is accrued.
Give me pros and cons of buying a used car vs. a new car? Leasing a car vs. buying a car?
Pros and Cons of Buying a Used Car vs. a New Car:
Buying a Used Car:
Pros:
- Lower cost: Used cars generally cost less than new cars.
- Slower rate of depreciation: Used cars have already gone through the steepest part of the depreciation curve, so they don’t lose their value as quickly as new cars.
- Lower insurance premiums: Used cars are generally cheaper to insure than new cars.
Cons:
- Risk of higher maintenance costs: Used cars may require more maintenance and repair work than new cars, which can be costly.
- Limited warranty: Used cars often come with a limited warranty, or none at all.
- Fewer options: Used cars may not have all the latest features and technologies available in newer models.
Buying a New Car:
Pros:
- Latest features and technologies: New cars often have the latest safety features, technology, and fuel efficiency.
- Warranty: A new car comes with a manufacturer’s warranty, which can provide peace of mind.
- Customization: Buyers can usually choose the specific features and options they want on a new car.
Cons:
- Higher cost: New cars generally cost more than used cars.
- Steep rate of depreciation: New cars lose their value quickly, leading to a higher cost of ownership over time.
- Higher insurance premiums: New cars may be more expensive to insure than used cars.
Pros and Cons of Leasing a Car vs. Buying a Car:
Leasing a Car:
Pros:
- Lower monthly payments: Lease payments are usually lower than loan payments on a new car.
- No down payment: Many leases require no money down, which can make a lease more affordable than buying with a down payment.
- Latest features: Lessees have the option of trading in for a new car every few years to access the latest features and technologies.
Cons:
- Mileage limitations: Lessees are often limited to a certain number of miles per year, with penalties for exceeding the limit.
- No equity: Lease payments do not contribute to ownership of the car.
- Fees and charges: Lessees may face fees for excessive wear and tear, early termination, or extra mileage.
Buying a Car:
Pros:
- Ownership: Buying a car provides ownership and assets that can be sold or traded.
- No mileage limitations: Owners can drive as many miles as they want without penalties.
- No restrictions on customization: Buyers can add aftermarket parts or accessories or modify the vehicle as they wish.
Cons:
- Higher upfront costs: Buying a car typically requires a down payment and higher monthly payments than leasing.
- Depreciation: Like new cars, owned cars lose value over time, leading to a lower resale value.
- Maintenance and repairs: Owners are responsible for all maintenance and repair costs after the warranty expires.