Math- a. Create a budget with information given. b. Create a chart of the family budget

Objectives: Identify fixed and variable expenses. Calculate interest over a period of time Create a personal family budget given specific criteria. Description: Students apply computational skills to real-world consumer application situations, including the purchase of goods and services, the cost of credit, the sale of goods and services, banking services, investments, personal income and taxes, budgeting, automobile ownership, commercial transportation, housing and retirement. Assignment Directions: a. Develop a budget for the fictitious Brown family. b. Create a chart of the family budget. Include the following: yearly gross and net income banking, housing, transportation, savings, insurance, transportation, and leisure activities additional expenses you identify as ordinary and necessary that are not listed in the narrative identify fixed and variable expenses cited resources to just additional ordinary and necessary expenses you identified ***HINT: use local newspapers or online advertisements to justify your decisions You have the following information: -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. *Remember, after you calculate expenses from the information provided and include additional expenses you identify as ordinary and necessary, you must create a chart of the family budget. For other expenses that you identify as necessary, use local research information (e.g., local sale advertisements or flyers, etc.) to determine the expenses. Explain and/or cite the sources you used to calculate the additional expenses you identify as ordinary and necessary. Be specific in your explanations and citations.