Question

natalie doak moved 1,000 kilometres from winnipeg, on march 1, 2021, to a new job and earned $40,000 in her new work location. her employer reimbursed the costs of selling her old residence and purchasing her new residence. she did not receive any allowance or reimbursement in respect of the following expenses, all of which she paid in 2021:moving van ........................................................................................................................ $ 2,600travelling costs to move natalie and family (four persons in all) .............................. 900cost of cleaning house in new work location ................................................................ 100cost of painting and installing new carpets and windows ........................................... 10,000cost of maintaining vacant former residence for three months until it was sold(mortgage interest and property taxes of $3,000 per month) ...................................... 9,000cost of changing address on legal documents ............................................................... 100house hunting trips for new residence ...................................................................... $25,700travelling costs consist of three meals a day for four persons over three full days, gas and other car costs, and hotel for two nights at $100 per night.

Answer 1

Mary Ann can save 10% of her after-tax monthly income of $2,589.10, as her monthly expenses total $2,145, leaving her with $444.10, which is more than her savings goal of $258.91.

Step-by-step explanation:

The question relates to constructing a budget table for an individual and analyzing if they can save a certain percentage of their income based on given expenses. To address this, we must calculate Mary Ann's total expenses and compare them with her after-tax income.

• Rent: $790
• Cell phone: $75
• Utilities: $45
• Cable TV and internet: $65
• Groceries: $450
• Entertainment: $250
• Car payment: $350
• Gasoline: $120

Total monthly expenses are the sum of the individual costs, giving us a total of $2,145. Mary Ann's after-tax monthly income is $2,589.10. Therefore, if she wants to save 10% of her after-tax income, which is $258.91, we subtract the total expenses from her income:

$2,589.10 (income) - $2,145 (expenses) = $444.10

Since $444.10 is greater than the desired savings of $258.91, Mary Ann can successfully save 10% of her income and will have $185.19 leftover after expenses and savings.