Mr. Nixon and Mr. Ryan are employed by HD Inc., which provides its employees with free parking. If the parking were not availabl
e, Mr. Nixon would pay $20 a month to a city garage. Mr. Ryan uses public transportation to commute. HD offers a complete family medical plan to its employees in which both Mr. Nixon and Mr. Ryan participate. Mr. Nixon’s family consists of five people, while Mr. Ryan is single. Consequently, Mr. Nixon’s annual cost of comparable medical insurance would be $16,400, and Mr. Ryan’s cost would be just $8,200. Assume that Mr. Nixon and Mr. Ryan cannot deduct their annual medical insurance premiums. Mr. Nixon has a 24 percent marginal tax rate. How much additional salary would he have to earn to provide himself with parking and medical insurance? Mr. Ryan has a 37 percent marginal tax rate. How much additional salary would he have to earn to provide himself with parking and medical insurance?
1 answer:
You might be interested in
Answer:
30 year fixed, 10% down at a fixed rate of 5%
Explanation:
given data
buying a townhouse = $276,650
savings = $28,000
earns a month = $4,475
solution
when here 10% down fix rate than cover for the down payment is
cover for the down payment = 10% of $276,650
cover for the down payment = $27,665
and here monthly income is $4,475
so mortgage will be = 30% of $4475
mortgage = $1,342.50
so by balance of mortgage is = $276,650 - $27,665
balance of mortgage = $248,985
so Total monthly repayment is
Total monthly repayment = $248,985 × +
Total monthly repayment = $1037.45 + $691.63
Total monthly repayment = $1729.08
so 30 year fixed, 10% down at a fixed rate of 5%