Answer Happy

William Sullivan just graduated with a bachelor's degree in engineering and landed a new job in Lafayette, IN with a starting annual salary of $76,000. There are a number of things that he would like to do with his newfound "wealth." For starters, he needs to begin repaying his student loans (totaling $32,000) and he'd like to reduce some outstanding balances on credit cards (totaling $4,000). William also needs to purchase a car to get to work and would like to put money aside to purchase a house in the future. Last, but not least, his current job doesn't provide any retirement benefits, therefore, William wants to put some money aside for his eventual retirement. William needs to do some financial planning for which he has selected a 5-year time frame. At the end of 5 years, he'd like to have paid off his current student loan and credit card debt. Luckily, William received $10,000 as a signing bonus from his employer that he used to pay off the credit card debt. William saved the remaining $6000 to make a down payment on the purchase of a new vehicle. William also wants to accumulate $60,000 for a down payment on a house. In addition, William would like to put aside 10% of his take-home salary for retirement. 1. Calculate William's monthly take-home pay. You should consider all applicable federal, state, and local income tax deductions.