Question

In Jan. 2020 Mary Jones was earning $40,000 in net income and spending $39,000 on a yearly basis. Mary Jones loses her job on April 1, 2020, and regains the same job ---at the same pay ---exactly six months later on October 1, 2020. During the six month layoff period, in the first three months, April, May and June, she earns $600 a week in EXTRA unemployment benefits -- IN ADDITION TO the $347 a week he earns, which is the average UI benefit for the workers in our state. Thus, for these 13 weeks, she earns $947 per week. In the next three months, July, August and September, she earns $347 per week in UI benefits. She and her family cut back on their spending by ten percent during the six months duration of unemployment, but then they go back to spending $39,000 on a yearly basis after he goes back to work. What is her net income level and spending level for 2020

Answer 1

Answer:

to determine her income level, we must add Mary's net salary during the first 3 months + total unemployment benefits for the first 13 weeks (April, May and June) + unemployment benefits for the next 13 weeks (July, August and September) + her normal income received during the last part of the year

total income = ($40,000 x 1/4) + ($947 x 13 weeks) + ($347 x 13 weeks) + ($40,000 x 1/4) = $10,000 + $12,311 + $4,511 + $10,000 = $36,822

total spending = normal spending level during 6 months + reduced spending level for the other 6 months

total spending = ($39,000 x 1/2) + ($39,000 x 1/2 x 9/10) = $19,500 + $17,550 = $37,050