Question

Gina is a single woman who lives by herself and is a district manager for a chain of home improvement stores. She earns an annual salary of $55, 000. However, she pays $1,040 a month for federal income taxes, $475 a month for Social Security, and $200 a month for Medicare. Gina also has several fixed expenses. She drives a 2003 vehicle her payment is $466 per month. She pays $117 per month for car insurance. Her rent is $985 per month, her health insurance is $95 per month. She puts $200 a month in her savings account. Gina also has variable expenses which is food $249 a month, $145 a month for gas for her car and $260 a month for entertainment.

After Gina paid her fixed expense, how much money does she have left over for monthly variable expenses?


$1, 654.33


$1, 005.33


$654


$954

Answer 1

Monthly income = 55,000 / 12 = $4,583.33

Monthly taxes = 1,040 + 475 + 200 = $1,715
Income after taxes = 4,583.33 - 1,715 = $2,868.33

Fixed expenses = 466 + 117 + 985 + 95 + 200 = $1,863

Amount left for variable expenses = 2,868.33 - 1,863 = $1,005.33

Answer: $1,005.33