Answer: Kim - Resp after 24 months = $4,416.00
Kim - Technology Fund after 24 months = $1,120.06
Kim's Technology Fund has enough money to buy a laptop.
Kim's Savings (Resp) will last less than 6 months
Step-by-step explanation for Kim:
January - June 2019
$14.50 + 30($0.25) = $22.00/hr
$22/hr x 15 hr x 4 wks x 6 months = $7920 Gross Income
- Resp (15%): $7920(0.15) = $1188
- CPP(5%): $7920(0.05) = $396
- EI(2%): $7920(0.02) = $158.40
Taxable Income is $7920 - $1188 = $6732 (Annual Income $13,464)
- Income Tax (0% for 0-9,000 Annual): $4500(0) = $0
- Income Tax (8% for 9-25,000 Annual): ($6732-$4500)(0.08) = $178.56
→ $7,920 -($1188 + $396 + $158.40 + $0 + $158.40) = $5,999.04 Net Income
Tech Fund (5%): $5999.04(0.05) = $299.95
Food Expense (30%): $5999.04(0.3) = $1,799.71
Clothing Expense (30%): $5999.04(0.3) = $1,799.71
Entertainment Expense (25%): $5999.04(0.25) = $1,499.76
Miscellaneous Expense (10%): $5999.04(0.1) = $599.90
Other Expenses: $5,699.08
July - December 2019 (excluding August)
$22/hr x 20 hr x 4 wks x 5 months + $200 = $6800 Gross Income
- Resp (15%): $6800(0.15) = $1020
- CPP(5%): $6800(0.05) = $340
- EI(2%): $6800(0.02) = $136
Taxable Income is $6800 - $1020 = $5780 (Annual Income $12,512)
- Income Tax (0% for 0-9,000 Annual): $4500(0) = $0
- Income Tax (8% for 9-25,000 Annual): ($5780-$4500)(0.08) = $102.40
→ $6,800 - ($1020 + $340 + $136 + $0 + $102.40) = $5,201.60 Net Income
Tech Fund (5%): $5201.60(0.05) = $260.08
Food Expense (30%): $5201.60(0.3) = $1,560.48
Clothing Expense (30%): $5201.60(0.3) = $1,560.48
Entertainment Expense (25%): $5201.60(0.25) = $1,300.40
Miscellaneous Expense (10%): $5201.60(0.1) = $520.16
Other Expenses: $4,941.52
January - June 2020
same as January - June 2019
July - December 2020 (excluding August)
same as July - December 2019
[tex]\boxed{\begin{array}{l|r|r|r|r||r}\underline{KIM}&\underline{Jan-Jun'19}&\underline{Jul-Dec'19}&\underline{Jan-Jun'20}&\underline{Jul-Dec'20}&\underline{Totals\quad }\\Gross&\$7920.00&\$6800.00&\$7920.00&\$6800.00&\$29440.00\\Resp&\$1188.00&\$1020.00&\$1188.00&\$1020.00&\$4416.00\\Net&\$5999.04&\$5201.60&\$5999.04&\$5201.60&\$22401.28\\Other&\$5699.08&\$4941.52&\$5699.08&\$4941.52&\$21281.20\\Tech&\$299.95&\$260.08&\$299.95&\$260.08&\$1120.06\end{array}}[/tex]
