Question

PLEASE HELP! Mr. Smith makes $20 an hour working full time. He gets about 25% of his income taken out for taxes. He came up with the following monthly budget.

Household:
Rent: $700
Cable: $85
Cell Phone: $175
Electric: $100
Food: $350

Total: 1,410

Automobile
Car: $200
Car Insurance: $100
Gas: $90
Maintenance: $15
Total: $405

How much money does he have left over monthly to put into savings?​

Answer 1

$585/month

Explanation:

To determine how much money Mr. Smith has left over monthly to put into savings, we need to first calculate his monthly income and his monthly expenses, including taxes.

Mr. Smith's hourly rate is $20, and he works full time, which is typically 40 hours per week. Therefore, his weekly income is:

$20/hour x 40 hours/week = $800/week

To find his monthly income, we multiply his weekly income by the number of weeks in a month:

$800/week x 4 weeks/month = $3,200/month

To find his monthly expenses, we add up the amounts for his household and automobile expenses:

$1,410/month (household) + $405/month (automobile) = $1,815/month

Since Mr. Smith gets about 25% of his income taken out for taxes, we need to calculate the amount of taxes he pays each month:

$3,200/month x 0.25 = $800/month (taxes)

Now we can subtract his monthly expenses and taxes from his monthly income to find out how much money he has left over to put into savings:

$3,200/month - $1,815/month - $800/month = $585/month

Therefore, Mr. Smith has $585/month left over to put into savings after paying his expenses and taxes.