Question

Help me please with kim!

Answer 1

Answer: Kim - Resp after 24 months = $4,416.00

Kim - Technology Fund after 24 months = $1,120.06

Kim's Technology Fund has enough money to buy a laptop.

Kim's Savings (Resp) will last less than 6 months

Step-by-step explanation for Kim:

January - June 2019

$14.50 + 30($0.25) = $22.00/hr

$22/hr x 15 hr x 4 wks x 6 months = $7920 Gross Income

• Resp (15%): $7920(0.15) = $1188

• CPP(5%): $7920(0.05) = $396

• EI(2%): $7920(0.02) = $158.40

Taxable Income is $7920 - $1188 = $6732 (Annual Income $13,464)

• Income Tax (0% for 0-9,000 Annual): $4500(0) = $0
• Income Tax (8% for 9-25,000 Annual): ($6732-$4500)(0.08) = $178.56

→ $7,920 -($1188 + $396 + $158.40 + $0 + $158.40) = $5,999.04 Net Income

Tech Fund (5%): $5999.04(0.05) = $299.95

Food Expense (30%): $5999.04(0.3) = $1,799.71

Clothing Expense (30%): $5999.04(0.3) = $1,799.71

Entertainment Expense (25%): $5999.04(0.25) = $1,499.76

Miscellaneous Expense (10%): $5999.04(0.1) = $599.90

Other Expenses: $5,699.08

July - December 2019 (excluding August)

$22/hr x 20 hr x 4 wks x 5 months + $200 = $6800 Gross Income

• Resp (15%): $6800(0.15) = $1020

• CPP(5%): $6800(0.05) = $340

• EI(2%): $6800(0.02) = $136

Taxable Income is $6800 - $1020 = $5780 (Annual Income $12,512)

• Income Tax (0% for 0-9,000 Annual): $4500(0) = $0
• Income Tax (8% for 9-25,000 Annual): ($5780-$4500)(0.08) = $102.40

→ $6,800 - ($1020 + $340 + $136 + $0 + $102.40) = $5,201.60 Net Income

Tech Fund (5%): $5201.60(0.05) = $260.08

Food Expense (30%): $5201.60(0.3) = $1,560.48

Clothing Expense (30%): $5201.60(0.3) = $1,560.48

Entertainment Expense (25%): $5201.60(0.25) = $1,300.40

Miscellaneous Expense (10%): $5201.60(0.1) = $520.16

Other Expenses: $4,941.52

January - June 2020

same as January - June 2019

July - December 2020 (excluding August)

same as July - December 2019