In: Accounting
Develop a budget for the fictitious Brown family and Create a chart of the family budget
Mr. Brown is a city worker earning $16.54 per hour for a 40 hour week, 52 weeks per year. He also earns overtime at the standard overtime rate. This year he worked 500 hours overtime. He also earns a yearly bonus of $2000 for his satisfactory performance evaluation. What as his total combined income?
Mrs. Brown is a social worker with a salary of $26000 per year. She also works 10 hours per week part-time on weekends at a retail store in the mall an hourly rate of $7.50 and a commission of 10% of sales. Her yearly sales were $25,000. What is her total combined income?
Joe, their teenage son, works 20 hours per week part-time earning $6.50 per hour. Joe has a responsibility to pay for his own student class dues of $10 per semester, his own entertainment, and his own clothes and personal items. Create a projected budget for Joe that includes a detailed list of possible expenditures.
Sandy, their pre-teen daughter, is too young to work, but receives and allowance of $10 per week for completing her chores at home. Create a typical budget for a pre-teen using her allowance as income.
Their house mortgage payment is $992 monthly.
Maintenance for the home averages $200 monthly.
The family lives in an area with mass transportation available.
Family medical insurance is available through Mr. Brown's employer for $150 per month. There are routine co-payments for each visit to the doctor. The Brown family was fortunate that no family member was ill, but each member of the family had a health check-up with a co-pay of $35.00 for each visit. Mr. Brown has a monthly prescription with a co-pay of $15.00.
The family's income tax rate is 25%.
Mrs. Brown's hourly rate (her part-time work) is put into savings, which earns 10 % interest compounded annually. How much will be in the account at the end of one year?
The family owes $5000 on credit card accounts with an annual interest rate of 12%, which is 1% monthly. The required minimum monthly payment is $75.00. How long will it take to repay the balance if the minimum amount is paid? How much must they pay each month to pay off the balance in 5 years?
***Hint: Locate a credit card calculator online to configure this amount. Provide the link to the calculator that you used.
Mr. and Mrs. Brown need to save 5% of their net income for retirement. Include this in your chart.
Identify fixed and variable expenses for the Brown family.
Family Budget of Fictitious Brown Family | Amount in $ | |
Total combined income of Mr. Brown = | 44,673.20 | |
(16.54x40x52) + (16.54x500) + 2000 | ||
Total combined income of Mrs. Brown = | 32,400.00 | |
26000 + (7.5x10x52) + (25000x10%) | ||
Projected Budet for Joe: | ||
Earning of Joe | 6,760.00 | |
Expenses of Joe: | ||
Student class dues (assuming 4 semesters) | 40.00 | |
Entertainment (assuming $50 spent per week) | 2,600.00 | |
Clothes (assumed) | 1,000.00 | |
Personal Items (assumed) | 1,000.00 | 4,640.00 |
Yearly saving by Joe | 2,120.00 | |
Typical Budet for Sandy: | ||
Allowance received by Sandy | 520.00 | |
Expenses done by Sandy (assuming $8 spent per week) | 416.00 | |
Yearly saving by Sandy | 104.00 | |
Total Yearly Income of Brown Family | 83,833.20 | |
(44673.20+32400+6760) | ||
Yearly Expenditure of Brown Family: | ||
House mortgage payment | 11,904.00 | |
Home maintenance | 2,400.00 | |
Transportation Expenses | ||
(assumed $100 per person per week for 2 people) | 10,400.00 | |
Family Medical Insurance | 1,800.00 | |
Expenses on routine health check-ups for a fmaily of four | 2,400.00 | |
Expenses incurred by Joe | 4,640.00 | |
Expenses incurred by Sandy | 416.00 | |
Personal and Entertainment expenses of Mr. Brown | 5,200.00 | |
(assuming $100 spent per week) | ||
Personal and Entertainment expenses of Mrs. Brown | 6,500.00 | |
(assuming $125 spent per week) | ||
Annual expenses of Mr. Brown (clothes etc.) | 3,000.00 | |
Annual expenses of Mrs. Brown (clothes etc.) | 4,000.00 | |
Repayment of Credit Card Dues | 900.00 | |
Income Tax | 20,958.30 | |
Saving for retirement | 3,853.66 | |
78,371.96 | ||
Surplus / (Deficit) | 5,461.24 | |
Fixed Expenses for Brown Family: | ||
House mortgage payment | 11,904.00 | |
Family Medical Insurance | 1,800.00 | |
Repayment of Credit Card Dues | 900.00 | 14,604.00 |
Variable Expenses for Brown Family: |
||
Home maintenance | 2,400.00 | |
Transportation Expenses | 10,400.00 | |
Expenses on routine health check-ups for a fmaily of four | 2,400.00 | |
Expenses incurred by Joe | 4,640.00 | |
Expenses incurred by Sandy | 416.00 | |
Personal and Entertainment expenses of Mr. Brown | 5,200.00 | |
Personal and Entertainment expenses of Mrs. Brown | 6,500.00 | |
Annual expenses of Mr. Brown (clothes etc.) | 3,000.00 | |
Annual expenses of Mrs. Brown (clothes etc.) | 4,000.00 |
38,956.00 |
Mrs. Brown's Savings | |||
Month | Earning | Interest for Month | Closing Balance |
January | 300.00 | - | 300.00 |
February | 300.00 | 2.50 | 602.50 |
March | 300.00 | 5.02 | 907.52 |
April | 300.00 | 7.56 | 1,215.08 |
May | 300.00 | 10.13 | 1,525.21 |
June | 300.00 | 12.71 | 1,837.92 |
July | 300.00 | 15.32 | 2,153.24 |
August | 300.00 | 17.94 | 2,471.18 |
September | 300.00 | 20.59 | 2,791.77 |
October | 300.00 | 23.26 | 3,115.04 |
November | 300.00 | 25.96 | 3,441.00 |
December | 300.00 | 28.67 |
3,769.67 |
Credit Card Dues Repayment |
|||||
Year | Month | Opening Balance | Interest for Month | Repayment | Closing Balance |
1 | 1 | 5,000.00 | 50.00 | 75.00 | 4,975.00 |
1 | 2 | 4,975.00 | 49.75 | 75.00 | 4,949.75 |
1 | 3 | 4,949.75 | 49.50 | 75.00 | 4,924.25 |
1 | 4 | 4,924.25 | 49.24 | 75.00 | 4,898.49 |
1 | 5 | 4,898.49 | 48.98 | 75.00 | 4,872.47 |
1 | 6 | 4,872.47 | 48.72 | 75.00 | 4,846.20 |
1 | 7 | 4,846.20 | 48.46 | 75.00 | 4,819.66 |
1 | 8 | 4,819.66 | 48.20 | 75.00 | 4,792.86 |
1 | 9 | 4,792.86 | 47.93 | 75.00 | 4,765.79 |
1 | 10 | 4,765.79 | 47.66 | 75.00 | 4,738.44 |
1 | 11 | 4,738.44 | 47.38 | 75.00 | 4,710.83 |
1 | 12 | 4,710.83 | 47.11 | 75.00 | 4,682.94 |
2 | 13 | 4,682.94 | 46.83 | 75.00 | 4,654.77 |
2 | 14 | 4,654.77 | 46.55 | 75.00 | 4,626.31 |
2 | 15 | 4,626.31 | 46.26 | 75.00 | 4,597.58 |
2 | 16 | 4,597.58 | 45.98 | 75.00 | 4,568.55 |
2 | 17 | 4,568.55 | 45.69 | 75.00 | 4,539.24 |
2 | 18 | 4,539.24 | 45.39 | 75.00 | 4,509.63 |
2 | 19 | 4,509.63 | 45.10 | 75.00 | 4,479.73 |
2 | 20 | 4,479.73 | 44.80 | 75.00 | 4,449.52 |
2 | 21 | 4,449.52 | 44.50 | 75.00 | 4,419.02 |
2 | 22 | 4,419.02 | 44.19 | 75.00 | 4,388.21 |
2 | 23 | 4,388.21 | 43.88 | 75.00 | 4,357.09 |
2 | 24 | 4,357.09 | 43.57 | 75.00 | 4,325.66 |
3 | 25 | 4,325.66 | 43.26 | 75.00 | 4,293.92 |
3 | 26 | 4,293.92 | 42.94 | 75.00 | 4,261.86 |
3 | 27 | 4,261.86 | 42.62 | 75.00 | 4,229.48 |
3 | 28 | 4,229.48 | 42.29 | 75.00 | 4,196.77 |
3 | 29 | 4,196.77 | 41.97 | 75.00 | 4,163.74 |
3 | 30 | 4,163.74 | 41.64 | 75.00 | 4,130.38 |
3 | 31 | 4,130.38 | 41.30 | 75.00 | 4,096.68 |
3 | 32 | 4,096.68 | 40.97 | 75.00 | 4,062.65 |
3 | 33 | 4,062.65 | 40.63 | 75.00 | 4,028.27 |
3 | 34 | 4,028.27 | 40.28 | 75.00 | 3,993.56 |
3 | 35 | 3,993.56 | 39.94 | 75.00 | 3,958.49 |
3 | 36 | 3,958.49 | 39.58 | 75.00 | 3,923.08 |
4 | 37 | 3,923.08 | 39.23 | 75.00 | 3,887.31 |
4 | 38 | 3,887.31 | 38.87 | 75.00 | 3,851.18 |
4 | 39 | 3,851.18 | 38.51 | 75.00 | 3,814.69 |
4 | 40 | 3,814.69 | 38.15 | 75.00 | 3,777.84 |
4 | 41 | 3,777.84 | 37.78 | 75.00 | 3,740.62 |
4 | 42 | 3,740.62 | 37.41 | 75.00 | 3,703.03 |
4 | 43 | 3,703.03 | 37.03 | 75.00 | 3,665.06 |
4 | 44 | 3,665.06 | 36.65 | 75.00 | 3,626.71 |
4 | 45 | 3,626.71 | 36.27 | 75.00 | 3,587.97 |
4 | 46 | 3,587.97 | 35.88 | 75.00 | 3,548.85 |
4 | 47 | 3,548.85 | 35.49 | 75.00 | 3,509.34 |
4 | 48 | 3,509.34 | 35.09 | 75.00 | 3,469.43 |
5 | 49 | 3,469.43 | 34.69 | 75.00 | 3,429.13 |
5 | 50 | 3,429.13 | 34.29 | 75.00 | 3,388.42 |
5 | 51 | 3,388.42 | 33.88 | 75.00 | 3,347.30 |
5 | 52 | 3,347.30 | 33.47 | 75.00 | 3,305.78 |
5 | 53 | 3,305.78 | 33.06 | 75.00 | 3,263.84 |
5 | 54 | 3,263.84 | 32.64 | 75.00 | 3,221.47 |
5 | 55 | 3,221.47 | 32.21 | 75.00 | 3,178.69 |
5 | 56 | 3,178.69 | 31.79 | 75.00 | 3,135.48 |
5 | 57 | 3,135.48 | 31.35 | 75.00 | 3,091.83 |
5 | 58 | 3,091.83 | 30.92 | 75.00 | 3,047.75 |
5 | 59 | 3,047.75 | 30.48 | 75.00 | 3,003.23 |
5 | 60 | 3,003.23 | 30.03 | 75.00 | 2,958.26 |
6 | 61 | 2,958.26 | 29.58 | 75.00 | 2,912.84 |
6 | 62 | 2,912.84 | 29.13 | 75.00 | 2,866.97 |
6 | 63 | 2,866.97 | 28.67 | 75.00 | 2,820.64 |
6 | 64 | 2,820.64 | 28.21 | 75.00 | 2,773.85 |
6 | 65 | 2,773.85 | 27.74 | 75.00 | 2,726.58 |
6 | 66 | 2,726.58 | 27.27 | 75.00 | 2,678.85 |
6 | 67 | 2,678.85 | 26.79 | 75.00 | 2,630.64 |
6 | 68 | 2,630.64 | 26.31 | 75.00 | 2,581.94 |
6 | 69 | 2,581.94 | 25.82 | 75.00 | 2,532.76 |
6 | 70 | 2,532.76 | 25.33 | 75.00 | 2,483.09 |
6 | 71 | 2,483.09 | 24.83 | 75.00 | 2,432.92 |
6 | 72 | 2,432.92 | 24.33 | 75.00 | 2,382.25 |
7 | 73 | 2,382.25 | 23.82 | 75.00 | 2,331.07 |
7 | 74 | 2,331.07 | 23.31 | 75.00 | 2,279.38 |
7 | 75 | 2,279.38 | 22.79 | 75.00 | 2,227.18 |
7 | 76 | 2,227.18 | 22.27 | 75.00 | 2,174.45 |
7 | 77 | 2,174.45 | 21.74 | 75.00 | 2,121.20 |
7 | 78 | 2,121.20 | 21.21 | 75.00 | 2,067.41 |
7 | 79 | 2,067.41 | 20.67 | 75.00 | 2,013.08 |
7 | 80 | 2,013.08 | 20.13 | 75.00 | 1,958.21 |
7 | 81 | 1,958.21 | 19.58 | 75.00 | 1,902.79 |
7 | 82 | 1,902.79 | 19.03 | 75.00 | 1,846.82 |
7 | 83 | 1,846.82 | 18.47 | 75.00 | 1,790.29 |
7 | 84 | 1,790.29 | 17.90 | 75.00 | 1,733.19 |
8 | 85 | 1,733.19 | 17.33 | 75.00 | 1,675.53 |
8 | 86 | 1,675.53 | 16.76 | 75.00 | 1,617.28 |
8 | 87 | 1,617.28 | 16.17 | 75.00 | 1,558.45 |
8 | 88 | 1,558.45 | 15.58 | 75.00 | 1,499.04 |
8 | 89 | 1,499.04 | 14.99 | 75.00 | 1,439.03 |
8 | 90 | 1,439.03 | 14.39 | 75.00 | 1,378.42 |
8 | 91 | 1,378.42 | 13.78 | 75.00 | 1,317.20 |
8 | 92 | 1,317.20 | 13.17 | 75.00 | 1,255.37 |
8 | 93 | 1,255.37 | 12.55 | 75.00 | 1,192.93 |
8 | 94 | 1,192.93 | 11.93 | 75.00 | 1,129.86 |
8 | 95 | 1,129.86 | 11.30 | 75.00 | 1,066.16 |
8 | 96 | 1,066.16 | 10.66 | 75.00 | 1,001.82 |
9 | 97 | 1,001.82 | 10.02 | 75.00 | 936.84 |
9 | 98 | 936.84 | 9.37 | 75.00 | 871.20 |
9 | 99 | 871.20 | 8.71 | 75.00 | 804.92 |
9 | 100 | 804.92 | 8.05 | 75.00 | 737.97 |
9 | 101 | 737.97 | 7.38 | 75.00 | 670.35 |
9 | 102 | 670.35 | 6.70 | 75.00 | 602.05 |
9 | 103 | 602.05 | 6.02 | 75.00 | 533.07 |
9 | 104 | 533.07 | 5.33 | 75.00 | 463.40 |
9 | 105 | 463.40 | 4.63 | 75.00 | 393.03 |
9 | 106 | 393.03 | 3.93 | 75.00 | 321.96 |
9 | 107 | 321.96 | 3.22 | 75.00 | 250.18 |
9 | 108 | 250.18 | 2.50 | 75.00 | 177.69 |
10 | 109 | 177.69 | 1.78 | 75.00 | 104.46 |
10 | 110 | 104.46 | 1.04 | 75.00 | 30.51 |
10 | 111 | 30.51 | 0.31 | 30.81 |
- |
Minimum monthly payment of $111.22 to pay credit card dues of $5000 in 5 years calculated as below:
Credi Card Payment Calculator | ||||||||
Enter Values | Loan Summary | |||||||
Loan amount | 5000.00 | Scheduled Payment | 111.22 | |||||
Annual interest | 12.00 % | Scheduled Number of Payments | 60 | |||||
Loan period in months | 60 | Actual Number of Payments | 60 | |||||
Moratorium in months | 0 | Total Early Payments | 0.00 | |||||
Date of loan | 5-Aug-2018 | Total Interest | 1673.33 | |||||
Optional extra payments | ||||||||
Lender Name: | INDIABULLS | |||||||
PmtNo. | Payment Date | Beginning Balance | Scheduled Payment | Extra Payment | Total Payment | Principal | Interest | Ending Balance |
1 | 05-Sep-18 | 5000.00 | 111.22 | 0.00 | 111.22 | 61.22 | 50.00 | 4938.78 |
2 | 05-Oct-18 | 4938.78 | 111.22 | 0.00 | 111.22 | 61.83 | 49.39 | 4876.94 |
3 | 05-Nov-18 | 4876.94 | 111.22 | 0.00 | 111.22 | 62.45 | 48.77 | 4814.49 |
4 | 05-Dec-18 | 4814.49 | 111.22 | 0.00 | 111.22 | 63.08 | 48.14 | 4751.41 |
5 | 05-Jan-19 | 4751.41 | 111.22 | 0.00 | 111.22 | 63.71 | 47.51 | 4687.71 |
6 | 05-Feb-19 | 4687.71 | 111.22 | 0.00 | 111.22 | 64.35 | 46.88 | 4623.36 |
7 | 05-Mar-19 | 4623.36 | 111.22 | 0.00 | 111.22 | 64.99 | 46.23 | 4558.37 |
8 | 05-Apr-19 | 4558.37 | 111.22 | 0.00 | 111.22 | 65.64 | 45.58 | 4492.73 |
9 | 05-May-19 | 4492.73 | 111.22 | 0.00 | 111.22 | 66.29 | 44.93 | 4426.44 |
10 | 05-Jun-19 | 4426.44 | 111.22 | 0.00 | 111.22 | 66.96 | 44.26 | 4359.48 |
11 | 05-Jul-19 | 4359.48 | 111.22 | 0.00 | 111.22 | 67.63 | 43.59 | 4291.85 |
12 | 05-Aug-19 | 4291.85 | 111.22 | 0.00 | 111.22 | 68.30 | 42.92 | 4223.55 |
13 | 05-Sep-19 | 4223.55 | 111.22 | 0.00 | 111.22 | 68.99 | 42.24 | 4154.56 |
14 | 05-Oct-19 | 4154.56 | 111.22 | 0.00 | 111.22 | 69.68 | 41.55 | 4084.89 |
15 | 05-Nov-19 | 4084.89 | 111.22 | 0.00 | 111.22 | 70.37 | 40.85 | 4014.51 |
16 | 05-Dec-19 | 4014.51 | 111.22 | 0.00 | 111.22 | 71.08 | 40.15 | 3943.43 |
17 | 05-Jan-20 | 3943.43 | 111.22 | 0.00 | 111.22 | 71.79 | 39.43 | 3871.65 |
18 | 05-Feb-20 | 3871.65 | 111.22 | 0.00 | 111.22 | 72.51 | 38.72 | 3799.14 |
19 | 05-Mar-20 | 3799.14 | 111.22 | 0.00 | 111.22 | 73.23 | 37.99 | 3725.91 |
20 | 05-Apr-20 | 3725.91 | 111.22 | 0.00 | 111.22 | 73.96 | 37.26 | 3651.95 |
21 | 05-May-20 | 3651.95 | 111.22 | 0.00 | 111.22 | 74.70 | 36.52 | 3577.24 |
22 | 05-Jun-20 | 3577.24 | 111.22 | 0.00 | 111.22 | 75.45 | 35.77 | 3501.79 |
23 | 05-Jul-20 | 3501.79 | 111.22 | 0.00 | 111.22 | 76.20 | 35.02 | 3425.59 |
24 | 05-Aug-20 | 3425.59 | 111.22 | 0.00 | 111.22 | 76.97 | 34.26 | 3348.62 |
25 | 05-Sep-20 | 3348.62 | 111.22 | 0.00 | 111.22 | 77.74 | 33.49 | 3270.89 |
26 | 05-Oct-20 | 3270.89 | 111.22 | 0.00 | 111.22 | 78.51 | 32.71 | 3192.37 |
27 | 05-Nov-20 | 3192.37 | 111.22 | 0.00 | 111.22 | 79.30 | 31.92 | 3113.08 |
28 | 05-Dec-20 | 3113.08 | 111.22 | 0.00 | 111.22 | 80.09 | 31.13 | 3032.98 |
29 | 05-Jan-21 | 3032.98 | 111.22 | 0.00 | 111.22 | 80.89 | 30.33 | 2952.09 |
30 | 05-Feb-21 | 2952.09 | 111.22 | 0.00 | 111.22 | 81.70 | 29.52 | 2870.39 |
31 | 05-Mar-21 | 2870.39 | 111.22 | 0.00 | 111.22 | 82.52 | 28.70 | 2787.87 |
32 | 05-Apr-21 | 2787.87 | 111.22 | 0.00 | 111.22 | 83.34 | 27.88 | 2704.53 |
33 | 05-May-21 | 2704.53 | 111.22 | 0.00 | 111.22 | 84.18 | 27.05 | 2620.35 |
34 | 05-Jun-21 | 2620.35 | 111.22 | 0.00 | 111.22 | 85.02 | 26.20 | 2535.33 |
35 | 05-Jul-21 | 2535.33 | 111.22 | 0.00 | 111.22 | 85.87 | 25.35 | 2449.46 |
36 | 05-Aug-21 | 2449.46 | 111.22 | 0.00 | 111.22 | 86.73 | 24.49 | 2362.74 |
37 | 05-Sep-21 | 2362.74 | 111.22 | 0.00 | 111.22 | 87.59 | 23.63 | 2275.14 |
38 | 05-Oct-21 | 2275.14 | 111.22 | 0.00 | 111.22 | 88.47 | 22.75 | 2186.67 |
39 | 05-Nov-21 | 2186.67 | 111.22 | 0.00 | 111.22 | 89.36 | 21.87 | 2097.32 |
40 | 05-Dec-21 | 2097.32 | 111.22 | 0.00 | 111.22 | 90.25 | 20.97 | 2007.07 |
41 | 05-Jan-22 | 2007.07 | 111.22 | 0.00 | 111.22 | 91.15 | 20.07 | 1915.92 |
42 | 05-Feb-22 | 1915.92 | 111.22 | 0.00 | 111.22 | 92.06 | 19.16 | 1823.85 |
43 | 05-Mar-22 | 1823.85 | 111.22 | 0.00 | 111.22 | 92.98 | 18.24 | 1730.87 |
44 | 05-Apr-22 | 1730.87 | 111.22 | 0.00 | 111.22 | 93.91 | 17.31 | 1636.95 |
45 | 05-May-22 | 1636.95 | 111.22 | 0.00 | 111.22 | 94.85 | 16.37 | 1542.10 |
46 | 05-Jun-22 | 1542.10 | 111.22 | 0.00 | 111.22 | 95.80 | 15.42 | 1446.30 |
47 | 05-Jul-22 | 1446.30 | 111.22 | 0.00 | 111.22 | 96.76 | 14.46 | 1349.54 |
48 | 05-Aug-22 | 1349.54 | 111.22 | 0.00 | 111.22 | 97.73 | 13.50 | 1251.81 |
49 | 05-Sep-22 | 1251.81 | 111.22 | 0.00 | 111.22 | 98.70 | 12.52 | 1153.11 |
50 | 05-Oct-22 | 1153.11 | 111.22 | 0.00 | 111.22 | 99.69 | 11.53 | 1053.42 |
51 | 05-Nov-22 | 1053.42 | 111.22 | 0.00 | 111.22 | 100.69 | 10.53 | 952.73 |
52 | 05-Dec-22 | 952.73 | 111.22 | 0.00 | 111.22 | 101.69 | 9.53 | 851.04 |
53 | 05-Jan-23 | 851.04 | 111.22 | 0.00 | 111.22 | 102.71 | 8.51 | 748.32 |
54 | 05-Feb-23 | 748.32 | 111.22 | 0.00 | 111.22 | 103.74 | 7.48 | 644.59 |
55 | 05-Mar-23 | 644.59 | 111.22 | 0.00 | 111.22 | 104.78 | 6.45 | 539.81 |
56 | 05-Apr-23 | 539.81 | 111.22 | 0.00 | 111.22 | 105.82 | 5.40 | 433.99 |
57 | 05-May-23 | 433.99 | 111.22 | 0.00 | 111.22 | 106.88 | 4.34 | 327.10 |
58 | 05-Jun-23 | 327.10 | 111.22 | 0.00 | 111.22 | 107.95 | 3.27 | 219.15 |
59 | 05-Jul-23 | 219.15 | 111.22 | 0.00 | 111.22 | 109.03 | 2.19 | 110.12 |
60 | 05-Aug-23 | 110.12 | 111.22 | 0.00 | 110.12 | 109.02 | 1.10 | 0.00 |