Sangster Math, June 16

 Algebra test on Monday June 20, 2022

d) Consider other expenses related to their home, can they afford living there?  

property tax: $3300/year;                           fuel for car: $5000/year

hydro, water, gas = $2600/year;                 Maintenance for house= $2000/year;

Maintenance for house= $3000/year;        day care for two children=$9000/year

Cable, TV, internet, phone = $3750/year;

Insurance for car and house = $4000/year;

 

 

 

 

3300 + 2600 + 3000 + 3750 + 4000 + 5000 + 2000 + 9000 

= 32650 Total expenses per year (goes up by 5% every year)

 

 

 

e) Calculate the total expenses (house related, child care, mortgage and car payments, excluding food) for the year and convert it to a monthly expenses. (ie. Divide by 12)

 

Annual total expenses 32650  

Mortgage payment every year(475 x12) = 5700

Car payment every year  (155 x 12) = 1860

 

Raymond and wife earns $48000/year

Total expenses 32650 + 5700 + 1860 = $55560/year

 

The Raymond family does not have enough money to pay for everything even if they don’t eat (really SAD). Expenses > Salary

 

 

f) Consider Raymond and his wife income, can they afford the new car and the new house even they don’t have to eat.  Compare the two numbers (income and total expenses)

 

The Raymond family does not have enough money to pay for everything even if they don’t eat (really SAD). Expenses > Salary

-       The situation now is similar to many families

-       About 20% of all Toronto mortgage holders will lose their homes

 

 

 

g) If you were Raymond, will you move to Far Far Away?  (NO, spend too much on gas, too exhausted after work to take care of kids) What are your choices to reduce expenses and/or increase income?  List two alternatives for each.

- two ways to increase income

1) Get another job (Uber, work from home) 

2) Downsizing – rent out their basement (about $1000 to $1200/month)

 

 

- two ways to reduce expenses

3) one parent stays home to take care of kids, no daycare

4) Prepare own meals, pack own lunch (left over)

5) Car pool with people in the area 

6) Cut down on cell phone bills (usually close to $100/m, Kwok $35/m – voice, text, 4G data)