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TMA 2

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TMA 2
TMA 2 – Part A:

Question 1:
1700x12=£20400 16827/12=£1402.25 1700/100=17x2=34+1700=£1734 1734x12=£20808 17104/12=£1425.33 1402.25x6=£8413.50 1425.33x6=£8551.98+£8413.50=£16965.48/12=£1413.79. Piper’s average net monthly income over one year would be £1413.79.

Net income Average month £ per month.
Earnings: 1413.79
Total net income: 1413.79

Rent 700.00
Council tax 91.67
Utility bills 73.34
Food 433.34
Leisure and gifts 70.00
Transport 86.67

Total Expenditure: 1455.02 Surplus/deficit: -41.23
Currently she wouldn’t be able to purchase her laptop as she has a deficit of £41.23 per month.
91.67+73.34+86.67+700.00=£951.68 1413.79-951.68=£462.11 800/12=66.67 462.11-66.67=£395.44 433.34+70.00=503.34-35.00=£468.34 468.34-395.44=£72.90 433.34-72.90=£360.44 360.44x12=£4325.28 4325.28/52=£83.18.
If she reduced her monthly leisure and gifts budget by 50% to £35.00 and reduced her food budget by £16.82 a week to £83.18 then she could save to buy her laptop in a year.
A. Pipers current household equivalised net annual income is £30448 if Larry
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