Question

You are planning a trip to Disney World in Florida. You estimate for week at Disney World, you will need $1,600.00 (This includes Airfare, room and board, daily expenses, and travel). You save for 5 months and your monthly gross salary is $1,675.00. Given that Social Security is 6.2% of your biweekly income, Medicare is 1.45% of your biweekly income, your monthly expenses are $975.23, and you pay State and Federal taxes in the amount of $35.00 and $75.51 respectively biweekly, how much will you have saved up and will you have saved enough to visit Disney World in December? Round all your answers to the nearest cent.

Answer 1

this isn't too bad, just a lot of individual calculations

5 months at 1675 per month gives 5 * 1675 = 8375

interpreting biweekly as every other week, and 1 month as 4 weeks (technically a month is more than 4 weeks but let's simplify the calculation) there are (5*4)/2 = 10 biweekly payments of $837.50

the state + federal tax are $35.00 and $75.51 on a biweekly basis, so add these together and multiply by 10 to get the biweekly deductions from these two taxes

your monthly expenses are $975.23 so deduct 5 * $975.23 from the total

to account for Social Security as 6.2% of your biweekly income, and Medicare as 1.45% of your biweekly income, deduct (6.2% + 1.45%) from $837.50 and multiply the result by 10 to account for all 10 biweekly SS and medicare deductions

once you have all the deductions figured out, you can deduct them from the total of $1,600.00 to find out how much, if anything, is leftover.