60.1K

Verified Solution

Link Copied!

Leyia and Larry Hartley of Columbus, Ohio have decided to start a family next year, so they are looking over their budget (illustrated in Table 3-5 as the "young married couple"). Leyia thinks that she can go on half-salary ($2,400 instead of $4,800 per month) in her job as a college textbook sales representative for about 18 months after the baby's birth; she will then return to full-time work. Looking at the Hartley's current monthly budget, identify categories and amounts in their budget where they realistically might cut back $2,400. (Hint: Federal and state taxes should drop about $600 a month ($7,200 annually) as their income drops.) The input in the box below will not be graded, but may be reviewed and considered by your instructor. Assume that Leyia and Larry could be persuaded not to begin a family for another five years. What specific budgeting recommendations would you give them for handling (i) their fixed expenses and (ii) their variable expenses to prepare financially for an anticipated $2,400 loss of income for 18 months as well as the expenses for the new baby? The input in the box below will not be graded, but may be reviewed and considered by your instructor. If the Hartley's gross income of $8,830 rises 6 percent per year in the future, what will their income be after five years? Round Future value of a Single Amount in intermediate calculations to four decimal places. (Hint: Use Appendix A-1 or the Garman/Forgue companion website.) Round your answer to the nearest dollar.

Answer & Explanation Solved by verified expert

See Answer