fixed expenses are expenses that don’t change from month to month. complete the following table.\n6. a)…

fixed expenses are expenses that don’t change from month to month. complete the following table.\n6. a) calculate the total of karen’s monthly fixed expenses.\n b) suggest the day of the month that karen might consider having each fixed expense deducted from her bank account. give a reason for choosing each date.\n| fixed expenses | amount | date chosen for payment | reason for date |\n| mortgage | $725 | | |\n| car payment | $298 | | |\n| home and car insurance | $114 | | |\n| student loan | $237 | | |\n| life insurance | $105 | | |\n| total | | | |\n7. why is this type of financial planning, or planning how and where to spend money, easier for someone who is paid semi - monthly than someone who is paid weekly?\n8. list other expenses that karen might have.

fixed expenses are expenses that don’t change from month to month. complete the following table.\n6. a) calculate the total of karen’s monthly fixed expenses.\n b) suggest the day of the month that karen might consider having each fixed expense deducted from her bank account. give a reason for choosing each date.\n| fixed expenses | amount | date chosen for payment | reason for date |\n| mortgage | $725 | | |\n| car payment | $298 | | |\n| home and car insurance | $114 | | |\n| student loan | $237 | | |\n| life insurance | $105 | | |\n| total | | | |\n7. why is this type of financial planning, or planning how and where to spend money, easier for someone who is paid semi - monthly than someone who is paid weekly?\n8. list other expenses that karen might have.

Answer

Explanation:

Step1: Identify fixed - expense amounts

The fixed - expense amounts are: Mortgage ($725), Car payment ($298), Home and car insurance ($114), Student loan ($237), Life insurance ($105).

Step2: Calculate total

Add all the amounts together: $725 + 298+114 + 237+105$. $725+298 = 1023$, $1023+114 = 1137$, $1137+237 = 1374$, $1374+105 = 1479$.

Answer:

a) The total of Karen's monthly fixed expenses is $1479. b)

Fixed Expenses Date Chosen for Payment Reason for Date
Mortgage 1st Usually due at the start of the month, aligns with most billing cycles.
Car payment 15th Mid - month payment can help in better cash - flow management if paid semi - monthly.
Home and car insurance 10th Gives time after the start of the month to manage other bills first.
Student loan 20th Leaves enough time after mid - month income (if semi - monthly paid) to make the payment.
Life insurance 25th Can be paid towards the end of the month after most major bills are settled.
  1. Someone paid semi - monthly has 2 regular paydays per month. This makes it easier to align fixed expenses with paydays, as there are fewer and more predictable income intervals compared to someone paid weekly, who has 4 or 5 paydays per month, making it more difficult to synchronize bill payments with income.
  2. Other expenses Karen might have include: Groceries, Utilities (electricity, water, gas), Internet and cable, Dining out, Entertainment, Clothing, and Personal care products.