Question

1. steven sassone pays $248.78 semiannually for insurance. 14. mary lean winters pays $103.26 quarterly for insurance. use the annual budgets to find the monthly budget for each item. 15. bill valente annual monthly disposable income $33,280 clothing $2100 debt service $1980 food $4200 hobbies $120 housing $8400 insurance $2100 medical $2100 recreation $1200 savings $3000 transportation $4200 utilities $1800 vacation $1200 miscellaneous $880 16. della smith annual monthly $46,217 $3000 no debt $6600 $200 $13,000 $3000 $3000 $300 $2400 $6000 $3000 $5000 $717

Explanation:

Step1: Recall the conversion formula

To convert annual budget to monthly budget, divide the annual amount by 12 since there are 12 months in a year.

Step2: Calculate Bill Valente's monthly budgets

Disposable income: $\frac{33280}{12}\approx2773.33$
Clothing: $\frac{2100}{12} = 175$
Debt service: $\frac{1980}{12}=165$
Food: $\frac{4200}{12} = 350$
Hobbies: $\frac{120}{12}=10$
Housing: $\frac{8400}{12}=700$
Insurance: $\frac{2100}{12}=175$
Medical: $\frac{2100}{12}=175$
Recreation: $\frac{1200}{12}=100$
Savings: $\frac{3000}{12}=250$
Transportation: $\frac{4200}{12}=350$
Utilities: $\frac{1800}{12}=150$
Vacation: $\frac{1200}{12}=100$
Miscellaneous: $\frac{880}{12}\approx73.33$

Step3: Calculate Della Smith's monthly budgets

Disposable income: $\frac{46217}{12}\approx3851.42$
Clothing: $\frac{3000}{12}=250$
Debt service: 0 (no debt)
Food: $\frac{6600}{12}=550$
Hobbies: $\frac{200}{12}\approx16.67$
Housing: $\frac{13000}{12}\approx1083.33$
Insurance: $\frac{3000}{12}=250$
Medical: $\frac{3000}{12}=250$
Recreation: $\frac{3000}{12}=250$
Savings: $\frac{300}{12}=25$
Transportation: $\frac{2400}{12}=200$
Utilities: $\frac{6000}{12}=500$
Vacation: $\frac{3000}{12}=250$
Miscellaneous: $\frac{5000}{12}\approx416.67$

Step4: Round to appropriate values

Round the values as per the requirements of the problem (usually to two - decimal places for money values).

Answer:

Bill Valente:
Disposable income: $\$2773.33$
Clothing: $\$175$
Debt service: $\$165$
Food: $\$350$
Hobbies: $\$10$
Housing: $\$700$
Insurance: $\$175$
Medical: $\$175$
Recreation: $\$100$
Savings: $\$250$
Transportation: $\$350$
Utilities: $\$150$
Vacation: $\$100$
Miscellaneous: $\$73.33$

Della Smith:
Disposable income: $\$3851.42$
Clothing: $\$250$
Debt service: $\$0$
Food: $\$550$
Hobbies: $\$16.67$
Housing: $\$1083.33$
Insurance: $\$250$
Medical: $\$250$
Recreation: $\$250$
Savings: $\$25$
Transportation: $\$200$
Utilities: $\$500$
Vacation: $\$250$
Miscellaneous: $\$416.67$