9 Questions

We love budgets. We love Gross vs net income.

Questions and Answers

- 1.What is the difference between gross vs net pay?
- A.
Gross is the amount of money you get after taxes Net is before taxes

- B.
Gross and Net amounts are pretty much the same when you make between $40,000.00 and $60,000.00 every year.

- C.
Net is the amount of money after taxes Gross is the amount before taxes no matter how much money you make.

- D.
Net is the amount of money after taxes gross is the amount before taxes only when you make more than $20,000.00.

- E.
None of the Above

- 2.Murtle is paid biweekly. In each two-week period, she works 64 hours and earns $15.15 per hour. She is married, and she and her husband have one child.The Social Security deduction is 6.2% and the Medicare deduction is 1.45%. State and federal taxes are also deducted. Help Murtle calculate the deductions from her paycheck. State taxes : ____________$75.98________________________________ Federal taxes: __________$50.45________________________________How much is Murtles paycheck every 2 weeks after all of her taxes is taken out
- A.
About $900.00

- B.
About $970.00

- C.
About $770.00

- D.
About $550.00

- E.
About $850.00

- 3.1. Chad makes $150,000.00 per year salary at his job. What is the maximum amount of money that Chad should have in a monthly debt payments (back-end)?
- A.
$54,000.00

- B.
$6000.00

- C.
$4500.00

- D.
None of the above

- 4.Moe makes $42,000.00 per year at her job. What is the maximum amount of money per month that Moe should have according to the (front-end)?
- A.
$980.00

- B.
$1,100.00

- C.
$11,760.00

- D.
None of the Above

- 5.Molly and her husband make a combined gross salary of $210,000.00. They have car payments of $500.00 and $320.00. They also have a credit card payment of $200 per month. They have $600 student loan payments. According to the front-end ratio, how much can they pay monthly for a home loan?
- A.
$10,000.00

- B.
$58,800.00

- C.
$4,900.00

- D.
None of the Above

- 6.Molly and her husband make a combined gross salary of $210,000.00. They have car payments of $500.00 and $320.00. They also have a credit card payment of $200 per month. They have $600 student loan payments. According to the back-end ratio, how much of a payment could they have for a new home?
- A.
$75,600.00

- B.
$6,300.00

- C.
$4,680.00

- D.
$5,280.00

- E.
None of the Above

- 7.1. In Numbers (the spreadsheet application) you start every formula with
- A.
A dollar sign

- B.
An equals sign

- C.
The cell letter and number you want to start with

- D.
All of the above

- E.
None of the above

- 8.If the Regular Expense Total was in cell B24 and the Discretionary Expense Total was in B34 what would the formula look like for Total Expenses:
- A.
=B24+B34

- B.
B24+B34=

- C.
B24+B34

- D.
None of the Above

- E.
A and B would work

- 9.
- A.
Gross income,Net income

- B.
Total expenses, Gross income

- C.
Net income, total expenses

- D.
Regular expenses and Discretionary Expenses, Net Income

- E.
Both c and d