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Calculating a personal budget

Personal Budgeting - Jennifer Swartz works as an interior decorator for Modern Fashion Corporation. Her annual salary is $36,500. Of that amount, 20% is withheld for federal income taxes, 7.15% for state taxes, 7.65% for FICA taxes, and 2% as a contribution to the United Way. Another 5% is deposited directly into a company credit union for savings. Jennifer has four monthly payments: $225 for her car, $80 for furniture, $410 for rent, and $100 to repay college loans. Jennifer's other monthly expenses are approximately: Prepare both a monthly budget and an annual budget for Jennifer that identifies gross salary, net take-home pay, net disposable income, and net surplus or deficit.

Food expense . . . . . . . . . . . . . . . . . . . . . $250
Clothing exppense . . . . . . . . . . . . . . . . . . . 100
Entertainment expense . . . . . . . . . . . . . . . . . 125
Utilities expense . . . . . . . . . . . . . . . . . . . 80
Insurance expense . . . . . . . . . . . . . . . . . . . 30
Gas & maintenance expenses on car. . . . . . . . . . . 180
Missellaneous expenses . . . . . . . . . . . . .. . . . 200
Total . . . . . . . . . . . . . . . . . . . . . . . . $965

****Prepare both a monthly budget and an annual budget for Jennifer that identifies gross salary,net take-home pay, net disposable income, and net surplus or deficit.

Prepare both a monthly budget and an annual budget for Jennifer that identifies gross salary,
net take-home pay, net disposable income, and net surplus or deficit.

Solution Summary

This problem illustrates how to set up a personal budget by month and annually.

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