To calculate Nancy's monthly budgets based on her net annual income of $63,000, we can follow these steps:
1) Calculate Nancy's Net Monthly Income
To find the monthly income, divide the annual income by 12 months.
\[ \text{Net Monthly Income} = \frac{\text{Net Annual Income}}{12} = \frac{63,000}{12} = 5,250 \]
2) Monthly Rent Budget
Housing budget is typically 30% of the net monthly income.
\[ \text{Monthly Rent Budget} = \text{Net Monthly Income} \times 0.30 = 5,250 \times 0.30 = 1,575 \]
3) Monthly Food Budget
Food budget is typically 20% of the net monthly income.
\[ \text{Monthly Food Budget} = \text{Net Monthly Income} \times 0.20 = 5,250 \times 0.20 = 1,050 \]
4) Monthly Transportation Budget
Transportation budget is typically 11% of the net monthly income.
\[ \text{Monthly Transportation Budget} = \text{Net Monthly Income} \times 0.11 = 5,250 \times 0.11 = 577.50 \]
Summary of Budgets
- Net Monthly Income: $5,250
- Monthly Rent Budget: $1,575
- Monthly Food Budget: $1,050
- Monthly Transportation Budget: $577.50
Feel free to ask if you need further assistance!