You are planning a trip to Spain in the summer of 2009. You estimate for an entire month in Spain, you will need $7,139.00

(This includes Airfare, room and board, daily expenses, and a Eurail Pass). You save for 7 months and your monthly gross

salary is $2770.22. Given that Social Security is 6.2% of your semi-monthly income, Medicare is 1.45% of your semi-

monthly income, your monthly expenses are $1,200, and you pay State and Federal taxes in the amount of $52.00 and

$101.00 respectively semi-monthly, how much will you have saved up and will you have saved enough to visit Spain in

August? Round all your answers to the nearest cent.

a. $7,366.10; yes

c. $6,281.22; no

b. $7,465.32; yes

d. $7,010.22; no

a. $7,366.10; yes

Step-by-step explanation:

Monthly salary is $2770.22 = > Semi-monthly salary is: $2770.22/2 = $1385.11

1. Semi-monthly, money you have to pay for Social Security is: $1385.11 x 6.2/100 = $85.87682

=> In 7 months, money you have to pay for Social Security is: $85.87682 x 7 x 2 = $1202.27548

2. Semi-monthly, money you have to pay for Medicare is: $1385.11 x 1.45/100 = $20.084095

=> In 7 months, money you have to pay for Medicare is: $20.084095 x 7 x 2 = $281.17733

3. Monthly expense is $1,200 = > 7-month expenses are: $1,200 x 7 = $8,400

4. In 7 months, money have to pay for State is: $52 x 7 x 2 = $728

5. In 7 months, money have to pay for Federal Taxes is: $101 x 7 x 2 = $1,414

Total money you have to pay in 7 months are:

1,202.27548 + 281.17733 + 8,400 + 728 + 1,414 = $12,025.4528

Total money you can earn in 7 months are:

$2770.22 x 7 = $19,391.54

=> Total money you can save in 7 months is: 19,391.54 - 12,025.4528 = $7,366.0872 > $7,139

=> Enough to visit Spain in August