Learn About Budgets Accounting Trivia!

The correct answer explains that net pay is the amount of money received after taxes have been deducted, while gross pay is the amount before any taxes have been taken out. This is true regardless of the amount of money one earns. Therefore, the answer accurately distinguishes between gross and net pay.

The formula for Total Expenses would be "=B24+B34". This formula adds the Regular Expense Total (in cell B24) and the Discretionary Expense Total (in cell B34) together to calculate the total expenses.

To calculate Murtle's paycheck after all deductions, we need to calculate the total deductions first. The Social Security deduction is 6.2% of her earnings, which is 0.062 * (64 * $15.15). The Medicare deduction is 1.45% of her earnings, which is 0.0145 * (64 * $15.15). The state taxes deduction is given as $75.98 and the federal taxes deduction is given as $50.45. Adding up all these deductions, we get the total deductions as $75.98 + $50.45 + Social Security deduction + Medicare deduction. Subtracting the total deductions from the total earnings, which is (64 * $15.15), we get Murtle's paycheck every 2 weeks after all taxes are taken out, which is about $770.00.

In Numbers (the spreadsheet application), you start every formula with an equals sign. This is because the equals sign indicates to the program that you are entering a formula and not just a regular value. By starting a formula with an equals sign, you are instructing Numbers to perform a calculation or operation based on the values or functions that follow the equals sign.

The front-end ratio is a measure used by lenders to determine how much of a borrower's income can be allocated towards housing expenses. It is calculated by dividing the total monthly housing expenses by the gross monthly income. In this case, Molly and her husband have a combined gross salary of $210,000.00. Their monthly housing expenses include car payments ($500.00 + $320.00), credit card payment ($200.00), and student loan payments ($600.00), which totals to $1,620.00. Therefore, according to the front-end ratio, they can pay a maximum of $1,620.00 for their home loan. None of the given answer options accurately represent this amount.

Molly and her husband's combined gross salary is $210,000.00. They have car payments of $500.00 and $320.00, a credit card payment of $200 per month, and $600 student loan payments. The back-end ratio is a measure of the maximum percentage of their gross income that can be used for debt payments, including a mortgage. To calculate this, we subtract their total monthly debt payments ($500 + $320 + $200 + $600 = $1,620) from their monthly gross income ($210,000 / 12 = $17,500), and then multiply the result by 0.28 (the maximum back-end ratio). Therefore, the maximum monthly payment they could have for a new home is $17,500 * 0.28 - $1,620 = $4,680.00.

Chad's maximum monthly debt payments (back-end) should be $4500.00. This is because the back-end ratio is calculated by dividing the total monthly debt payments by the monthly gross income. In this case, Chad's annual salary is $150,000.00, so his monthly gross income would be $12,500.00. The maximum back-end ratio recommended is typically 36%, which means that the total monthly debt payments should not exceed 36% of the monthly gross income. Therefore, 36% of $12,500.00 is $4500.00, making it the correct answer.

Moe makes $42,000 per year at her job. To calculate the maximum amount of money per month, we divide her annual salary by 12 (months in a year). Therefore, $42,000 / 12 = $3,500. The front-end ratio is typically 28% of the monthly income. So, 28% of $3,500 is (0.28 * $3,500) = $980.00. Therefore, the maximum amount of money per month that Moe should have according to the front-end is $980.00.

To create a balanced budget, it is important for my net income to equal my total expenses. This means that after deducting all regular and discretionary expenses from my net income, the result should be zero. Both option C (net income, total expenses) and option D (regular expenses and discretionary expenses, net income) correctly represent this concept.