Answer:
To calculate James' fixed monthly expenses, we need to consider his rent, credit card payment, car payment, insurance premiums, and 401(k) contribution.
1. Rent: As James lives alone in an apartment, his monthly rent is a fixed expense. However, the exact amount is not provided in the question. Therefore, we cannot determine the specific value for this expense.
2. Credit Card Payment: James has a credit card balance of $3,235. To calculate his monthly payment, we need to know the interest rate and minimum payment percentage required by the credit card company. Without this information, we cannot determine the exact monthly payment.
3. Car Payment: James financed a new car worth $28,000 with a term of five years (60 months). His monthly payment is $554. This amount will remain constant throughout the term of the loan.
4. Insurance Premiums: James has health insurance and disability insurance through his employer, which cost him $185 per month. These premiums are fixed expenses that he pays regularly.
5. 401(k) Contribution: James contributes 4% of his gross income to his 401(k). However, we do not have information about his gross income in the question. Therefore, we cannot calculate the exact amount he contributes each month.
In summary, based on the information provided in the question, we can only determine that James' fixed monthly expenses include his car payment ($554) and insurance premiums ($185). The specific values for rent, credit card payment, and 401(k) contribution cannot be determined without additional information.
Explanation: