Question

Student Budget #1: Marcus works part-time at a lumber yard and makes $16.50 per hour. With his academic and sports schedule, he is able to work 20 hours a week. Marcus lives at home, so he has very few bills, one of which is a cell phone that costs $110 a month. He is responsible for car insurance, which is $1500 a year, and he has to pay for gas, maintenance and repairs ($200/month). His parents also provide him with meals at home, but he likes to eat out with his friends twice a week ($15 per meal). He has health insurance under his parent's plan. Within the coming year, he wants to buy a new gaming laptop for $1600, so he has been saving $160 every month. Fill in the budget lines here for Marcus. NOTE: Use round numbers only (50, NOT 50.00 or $50). For the purposes of this exercise, Marcus's cell phone bill will be budgeted from his 'Utility' category, the category 'Food' includes groceries and eating out and the category 'Transportation' includes gas, car maintenance, and public transportation). Gross Income $ 1320 Estimated income tax (20%) Net Income $ Charity $ 0 Savings $ Housing $

Answer 1

Here's the breakdown for Marcus's budget based on the provided information:

### Income
- **Gross Income:**
- Hourly Wage: $16.50
- Hours per Week: 20
- Weekly Gross Income: $16.50 * 20 = $330
- Monthly Gross Income: $330 * 4 = $1320

- **Estimated Income Tax (20%):**
- $1320 * 20% = $264

- **Net Income:**
- $1320 - $264 = $1056

### Budget Breakdown
- **Charity:** $0
- **Savings:** $160 (for the gaming laptop)
- **Housing:** $0 (since he lives at home)

### Expenses
1. **Utilities:**
- Cell Phone: $110

2. **Transportation:**
- Car Insurance: $1500/year = $1500/12 = $125/month
- Gas, Maintenance, and Repairs: $200/month
- Total Transportation: $125 + $200 = $325

3. **Food:**
- Eating Out: $15/meal * 2 meals/week * 4 weeks = $120/month
- Total Food: $120

### Calculations for Total Expenses
- **Total Expenses:**
- Utilities: $110
- Transportation: $325
- Food: $120

- **Total Monthly Expenses:**
- $110 (Utilities) + $325 (Transportation) + $120 (Food) = $555

### Summary Budget
- **Gross Income:** $1320
- **Estimated Income Tax (20%):** $264
- **Net Income:** $1056
- **Charity:** $0
- **Savings:** $160
- **Housing:** $0
- **Total Expenses:** $555

### Remaining Balance After Expenses
Total Remaining Balance:
- Net Income - Total Expenses - Savings
- $1056 - $555 - $160 = $341

### Final Budget Summary
- **Gross Income:** $1320
- **Estimated Income Tax (20%):** $264
- **Net Income:** $1056
- **Charity:** $0
- **Savings:** $160
- **Housing:** $0
- **Utilities:** $110
- **Transportation:** $325
- **Food:** $120
- **Total Expenses:** $555
- **Remaining Balance:** $341

This covers Marcus's budget lines for a month, reflecting his income, expenses, and desired savings.