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Tyler and Brittany got married six months ago, and they both have good jobs coming out...

Tyler and Brittany got married six months ago, and they both have good jobs coming out of college. Tyler landed a marketing job with a communications company making a starting salary of $40,000 take-home pay per year. Brittany began her career as a first grade teacher’s aide for the local school district making $10.00 per hour after taxes for 30 hours a week. After their wedding, they each purchased new vehicles, complete with car loans. Tyler’s payments on his new truck are $488 per month, and Brittany is leasing her new compact car for nothing down and $239 per month for the next three years. They are also thinking about buying a new home with a monthly mortgage payment of $1,850. After figuring in monthly expenses, they realize that there isn’t much left over at the end of the month.

  1. If they continue their spending habits, predict what their financial state will be in two years from now.

2. Should Tyler and Brittany make any changes to their budget? If so, what?

  1. If they didn’t purchase a home right now, how would their financial life look in two years?
  2. Are there other options that Tyler and Brittany have for transportation instead of making payments on two new vehicles?
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Answer #1

Here, Tyler and Brittany are earning good and following are the details of the salary and their expense.

All the answer to the questions and detail explanation is provided below:

Tyler Annual Salary take home Monthly $40,000 $3,333.33 Brittany Monthly S10 Per hour 51,200 Total Income $4,533.33 Per Month New Vehicles Installment 727 Per month488+239 for tyler &Brittany 1850 New Home Monthly Mortage Payment Total Fixed Expense Total Remaining $ 2,577.00 $1,956.33 Per month Fixed Expense Ratio 57% Q-1 After 2 Years if they continue their spending habit financial status will be Total Savings before any variable and lifestyle expense after 2 years S46,952.00 (Total Remaining 24 Months) Q-2 Tyler and Brittany should not take any additional liabilties apart from car loan and home mortage at this point they are fine but they should not gather any extra liabilties If they dint purchase the home right now their financials after 2 years will be Total savings montlhy if they dont buy home After 2 Years 3,806.33 Total Remanining Per month+Monthly Mortage Payment $91,352.00 Tyler and Brittany can buy only one vehicle or they can use public transport for commute

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