Solve the problem.
-Suppose your after-tax income is $40,040. Your annual expenses are $25,017 for rent, $6199 for food and household expenses, $1253 for interest on credit cards, and $7374 for entertainment, travel, and
Other. You expect to get a 25% raise next year. Could you afford $4782 in tuition and fees without
Going into debt?

Question

Quizplus · Accepted Answer

After the 25% raise, your after-tax income will be $40,040 * 1.25 = $50,050. Your total annual expenses before the tuition and fees are $25,017 (rent) + $6,199 (food and household) + $1,253 (interest on credit cards) + $7,374 (entertainment, travel, and other) = $39,843. Adding the tuition and fees of $4,782 to your current expenses gives a total of $44,625, which is less than your projected income of $50,050, allowing you to afford the tuition and fees without going into debt.

Solve the Problem. -Suppose Your After-Tax Income Is $40,040. Your Annual Expenses Are