Question

I need help on my assignment this is what i have so far guys let me know if it is wrong or what i should change

Question : Nancy and Shawn Miller are a newly married couple in their early 30s. They are currently renting a one-bedroom apartment in the city but would like to purchase a two-bedroom condominium within the next two years. Their combined gross annual income is $96 000. Each month, they pay $700 in wedding debt and $610 for student loans. Rent is $1200 and includes utilities. Their monthly transit passes cost $200. They spend $520 each month on groceries and an additional $275 for cable, Internet, and telephone. Approximately $250 is spent every month on clothing. They like to have about $350 per week in discretionary income for leisure and miscellaneous expenses, such as movies, books, and CDs. They would like to save $15 000 over the next two years for a down payment. Create a monthly budget for Nancy and Shawn. Assume tax deductions of 30 percent

My answers :

Gross Income XXX $96 000
Deductions (XXX) TAX (30%)
Disposable Income XXX $67 200 every month= 5600
Necessities
Rent $1200 xxx
Debt Payments $700 xxx
Student Loan Payments $610 xxx
Cable, Internet, Phone $275 xxx
Groceries $520 xxx
Transit Passes $200 xxx
Clothes $250 xxx
Total Necessities XXX $15,255
Discretionary Income XXX $51975
Every month = 4331.25
Entertainment $350 xxx
Leftover Income for Savings (help)
XXX

and 3 other questiosn i need help with
Questions (15 Marks)
⦁ How much money is left over at the end of the month? Is this enough to save $15,000 in two years?


⦁ How much would they have to save each month to achieve their $15 000 goal within two years?


⦁ How would you recommend Shawn and Nancy trim their budget in order to have more money for savings?

Answer 1

Answer:

No ; $625 ; cut down expenses

Explanation:

Annual Gross =$96000

Amount after tax : (1 - 0.3) * 96000 = $67,200

Monthly Total Expenses :

$(700 + 610 + 1200 + 200 + 520 + 275 + 250 + (350*4)) = $5,155

After - tax monthly :

67,200 / 12 = $5600

Amount left :

$5600 - $5155 = $445

If total amout left is saved for 2 years :

Amount saved = ($445 * 24) = $10,680

$10,680 < $15,000 ; therefore, it won't be enough for the purchase.

Monthly saving to earn $15000 in 2 years

2years = 24 months

$15000 / 24

= $625

Grocery expenses , clothing, discretionary cost and cable expenses could be all be cut down in other to increase saving.