James has a yearly salary of $34,200. His employer withholds $3773 in state and federal taxes and $3293 in FICA taxes throughout the year. He has the following monthly costs: transportation is $190, cell phone bill is $65, student loans require $240 in repayment, and rent is $400. He is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $260, internet is $100, health insurance is $336, and groceries are $200. How much money is left each month for discretionary spending after all necessities are accounted for? Round your answer to the nearest cent, if necessary.

Answer 1

First, let's calculate James's total annual taxes withheld:
$3773 + $3293 = $7066

Now, let's calculate James's total annual costs for transportation, cell phone bill, student loans, and rent:
$190 + $65 + $240 + $400 = $895 per month
$895 * 12 = $10,740

Now, let's calculate James's total annual costs for utilities, internet, health insurance, and groceries:
$260 + $100 + $336 + $200 = $896 per month
$896 * 12 = $10,752

Now, let's add all of James's annual costs together:
$7066 + $10,740 + $10,752 = $28,558

Now, let's subtract James's total costs from his yearly salary to find out how much money is left each month for discretionary spending:
$34,200 - $28,558 = $5,642

Finally, let's divide the remaining amount by 12 to find out how much is left each month for discretionary spending:
$5,642 / 12 = $470.17

Therefore, James has approximately $470.17 left each month for discretionary spending after all necessities are accounted for.