Personal Finance question (Rent+interent+netflix)

[Seeker]

I am confused here. I am an accountant and this made my brain hurt!

The way I look at it is that everyone's share is $430.22.

I presume the other 2 roommates add the $25.22 to their rent? So they both pay $430.22?

If you pay $379.78 (rent) + $75.67 (utilities), then your total outflow is $455.45.

If you go with the $354.56 (rent) + $75.76 utilities, then your total is 430.22 like the others. This makes more sense to me.

I also get $354.56 when I subtract 2/3 of the utility bill from your rent. You've already paid your third of the internet, so you wouldn't add your third to the rent. You would subtract the reimbursement from the other 2 roommates, from your rent.

Thus, the $379 figure doesn't make sense to me. I vote $354.56.

What am I missing here?

In trying to put it simply: if you transacted both separately, you would all pay $405 rent. You would pay the internet and they would both give you $25.22 for their share. If you want to net those out, it is $354.56.

Thankfully, when I lived with roommates, the rent was separate from the utilities. I never had to do this exercise...

MM -- they other two do not add anything to their rent. OP got the Internet bill to take care of for the entire payment of it. They told him/her to deduct their share from his portion. Unfortunately they did not make it simple:

With the lastest of OP posting:

OP pays:

405 rent
22.56 internet
22.56 internet to 2nd persons bill
22.56 internet to 3rd persons bill.
---
472.68 is total bill


All three people are each supposed to pay:
405
22.56
---
427.56

----

But what is happening is this...

405 + 405 + 405 + 22.56 + 22.56 + 22.56 = total rent and internet (1282.68)

OP needs to subtract 45.12 from some amount.

If he takes it from 1/3 rent + 1/3 internet (aka 427.56 amount which represents all three of their shares) -- then it's balanced.

If he takes it from the rent alone, then he has the best deal. Because ultimately he got free internet!

382.44 should be his rent inclusive of his share of the internet

[Seeker]

withdrawn

[draxz1289]

I am confused here. I am an accountant and this made my brain hurt!

The way I look at it is that everyone's share is $430.22.

I presume the other 2 roommates add the $25.22 to their rent? So they both pay $430.22?

If you pay $379.78 (rent) + $75.67 (utilities), then your total outflow is $455.45.

If you go with the $354.56 (rent) + $75.76 utilities, then your total is 430.22 like the others. This makes more sense to me.

I also get $354.56 when I subtract 2/3 of the utility bill from your rent. You've already paid your third of the internet, so you wouldn't add your third to the rent. You would subtract the reimbursement from the other 2 roommates, from your rent.

Thus, the $379 figure doesn't make sense to me. I vote $354.56.

What am I missing here?

In trying to put it simply: if you transacted both separately, you would all pay $405 rent. You would pay the internet and they would both give you $25.22 for their share. If you want to net those out, it is $354.56.

Thankfully, when I lived with roommates, the rent was separate from the utilities. I never had to do this exercise...

OMG this such a puzzle.

This is it, totally every one has to pay 430.22 (Rent $405 plus Internet and netflix at 25.22 each ) so thats agreed upon by us


where I am getting confused is should I deduct their share of 50.44 from my rent fo 405$ so I pay 405$-50.44 or should I add my share 25.22 to 405$ and deduct the remaning two share ie. 405+25.22 - 50.44 = 379.78

[draxz1289]

I am confused here. I am an accountant and this made my brain hurt!

The way I look at it is that everyone's share is $430.22.

I presume the other 2 roommates add the $25.22 to their rent? So they both pay $430.22?

If you pay $379.78 (rent) + $75.67 (utilities), then your total outflow is $455.45.

I dont pay $379.78 + $75.67

is it $405 + $25.22( My share) = $430.22 - $50.44 so I pay $379.78 is that right or should it be 405 - 50.44

This was said in the earlier post.

"So you actually pay the internet and Netflix bills but are only personally responsible for 1/3 of each of those. Is that correct?

That means you owe $405 rent, $22.56 internet and $2.66 Netflix, or $430.22/month.

$430.22 - $50.44 = $379.78. That is the amount you should be paying."

[Seeker]

Back to the original posting with netflix....

draxz you'd charge 379.78

where I am getting confused is should I deduct their share of 50.44 from my rent fo 405$ so I pay 405$-50.44 or should I add my share 25.22 to 405$ and deduct the remaning two share ie. 405+25.22 - 50.44 = 379.78

you want to charge them only what you paid on their behalf.

Your 1/3 responsibility is on the whole of the share. Thus, you deduct their share on the whole of your 1/3 responsibility.

379.78 is the right number. if you use the smaller, look at that number difference. 22.56 off hmmm. That's your share that is left out.

[Seeker]

Draxz1289 you've asked two different questions.
1) 405 rent + 22.56 internet + 2.66 Netflix
2) 405 rent + 22.56 internet

-----

solution #1:

You have agreed that everyone should be paying 1/3 or $430.22/month total.

405 + 22.56 + 2.66 = 430.22
You are paying your 430.22 + thier shares of the Internet + Netflix.
so you pay 430.22 plus 2 times (22.56+2.66)
Their share combined = 22.56 + 22.56 + 2.66 + 2.66 = 50.44
so the calc is your share (1/3 of everything) - the portion of their share that you paid.
430.22 - 50.44
= 379.78

If you deduct from just the rent, then there will be a missing or unbalanced amount of 22.56 + 2.66 = 25.22 ; your share of those items is missing.
The calc is NOT your rent - the portion of the share you paid.
405 - 50.44
= 356.56

The DIFFERENCE between the correct calculation (379.78) and the incorrect calculation ($356.56) is one share of Internet plus one share of Netflix ($25.22).

That's your share that just disappears when you exclude your 1/3 share of those costs.

Solution:
Subtract their shares (50.44) from your whole share (430.22) and your costs will balance equitably.

-----


The net solution to problem #2 is the same:

$405 rent + 22.56 Internet = $427.56
427.56 = 1/3 the costs of both these items.
427.56 = everyone's 1/3 share of these costs.
if you pay 100% of the Internet, then the calculation should be:
427.56 (your 1/3 complete share) - 45.12 (the shares that you paid for the other two)
= 382.44

[MonkeyMama]

I dont pay $379.78 + $75.67

is it $405 + $25.22( My share) = $430.22 - $50.44 so I pay $379.78 is that right or should it be 405 - 50.44

This was said in the earlier post.

"So you actually pay the internet and Netflix bills but are only personally responsible for 1/3 of each of those. Is that correct?

That means you owe $405 rent, $22.56 internet and $2.66 Netflix, or $430.22/month.

$430.22 - $50.44 = $379.78. That is the amount you should be paying."

I still don't agree with the others.

Draxz - What are you paying right now? rent + the entire utility bill, right?

I was saying that if you were to pay the $379.78 rent plus the internet/netflix that you will be paying more than the others.

If you pay $354.56 rent + internet/netflix, you will be equal with the others. ($430.22/each)

If you are paying something else, I misunderstood the question. The underlying assumption of my calculations is that you already paid 100% of the utilities, so you merely need to be reimbursed for the other 2/3 (which would be deducted from base rent). As such, I believe the others are suggesting that you pay your share of the internet/netflix twice.

I ask what I am missing since I Seen to be alone in my analysis, though confident in my calculations based on my understanding. I layed it out 2 or 3 different ways in my original post.

[MonkeyMama]

Roommate A: $405 rent + $25.22 = $430.22
Roommate B: $405 rent + $25.22 = $430.22
You: $405 rent - $50.44 = $354.56

430.22 + 430.22 + 354.56 = $1215 rent

Your total cash outflow is $354.56 rent + 75.76 internet/netflix = $430.22.

This calculation is the right amount to pay the landlord and makes everyone even.

[nycdebt]

holy crap, people made this a lot harder than it actually was. I just think people had different interpretations of the actually question.

OP, if you're writing out a seperate rent check to one of your roommates and you're deducting the ALREADY paid in full internet/netflix, you're only writing out a check for $354.

Meaning:

A) Each of your roommates is covering the short-fall of the rent by adding their portion of the internet/netflix to their rent checks
B) your total responsible monthly payment is still $430/month

[cypher1]

[QUOTE=nycdebt;280320]holy crap, people made this a lot harder than it actually was. I just think people had different interpretations of the actually question.

OP, if you're writing out a seperate rent check to one of your roommates and you're deducting the ALREADY paid in full internet/netflix, you're only writing out a check for $354.[QUOTE]

Seriously, after reading all these responses, I got more confused than from the original question. I say write the check for $354 and be done with it. Or to make it more even for everyone, take the monthly rent amount+utilities+extras and divide by 3.

[cypher1]

[QUOTE=cypher1;280330]

holy crap, people made this a lot harder than it actually was. I just think people had different interpretations of the actually question.

OP, if you're writing out a seperate rent check to one of your roommates and you're deducting the ALREADY paid in full internet/netflix, you're only writing out a check for $354.

Seriously, after reading all these responses, I got more confused than from the original question. I say write the check for $354 and be done with it. Or to make it more even for everyone, take the monthly rent amount+utilities+extras and divide by 3.

[jpg7n16]

I stay with two of my friends. The total rent is $1217 (so its 1217/3 = 405 PP) I pay for the internet 67.68 and netflix 7.99 every month and I am suppose to deduct it , so 67.68/3 = $22.56 and 7.99/3 = $2.66


My question is should I pay $405 + 22.56 + 2.66 minus $50.44 (22.56*2 , 2.66*2) = 379.78

or

$405 - 50.44 (22.56*2 , 2.66*2) = 354.56

Wow seriously? You guys are way too complicated.

(Total you should have paid) minus (amounts already paid) = amount left to be paid

Where 'total you should have paid' is one third of all the shared expenses.


(1/3)*(1217 + 67.68 + 7.99) - 67.68 - 7.99 = 430.89 - 75.67 = $355.22

If everyone paid their fair share, each would split the rent/netflix/internet - and everyone would owe $430.89/month. Since you've already paid $75.67 of your share (by paying two bills in full from your own money), you've got $355.22 left to pay.


Stated another way: each person should start off owing $430.89

$430.89
-67.68 (paid to internet)
-7.99 (paid to netflix)
355.22 (left to get paid somehow)


------------------------------------------------------------------------------
Which works out, cause when you look at what's left to get paid:

Owed by Person 1 + Owed by Person 2 + Owed by You = Rent

430.89 + 430.89 + 355.22 = (drum roll please)....... $1217 aka rent

Ta da!




- which I just scrolled back up and saw that MonkeyMama already posted this same calc, so that steals a little of my thunder hah oh well

[draxz1289]

OK guys I think I have figured it out. This is for the month with out netflix

Total actually payable amount is Rent 1217 + 67.68 = 1284.68 so 428.22$ per person


Person 1 Pays = 1217/3 = 405.66 PLUS 67.68/3 = 22.56 = $428.22


Person 2 pays = 1217/3 = 405.66 PLUS 67.68/3 = 22.56 = $428.22
----------
$856.44
- $1284.68 (Total rent 1217+67.60)
----------
$428.22 (total remaining)

My share: $428.22 (rent plus my share of the internet) - 45.12 two of their share of the internet = 383.1


So once again, total payable is $1284.68 (Total rent 1217+67.60)

Now person 1: $428.22 PLUS Person 2: $428.22 PLUS my share 383.1 = 1239.54

so $1284.68 - 1239.54 = 45.14 (which is two share of the internet)
================================================== =============
Now with netflix

Total actually payable amount is Rent 1217 + 67.68 + 7.99 = 1292.67

Person 1 Pays = 1217/3 = 405.66 PLUS 67.68/3 = 22.56 Plus 7.99/3 = 2.66 = $430.22


Person 2 pays = 1217/3 = 405.66 PLUS 67.68/3 = 22.56 Plus 7.99/3 = 2.66 = $430.22
----------
$860.44
- $1292.67 (Total rent 1217+67.60+7.99)
----------
$432.23 (total remaining)

My share: $432.23 - 50.44 two of their share of the internet and netflix = 381.79

[draxz1289]

Wow seriously? You guys are way too complicated.

(Total you should have paid) minus (amounts already paid) = amount left to be paid

Where 'total you should have paid' is one third of all the shared expenses.


(1/3)*(1217 + 67.68 + 7.99) - 67.68 - 7.99 = 430.89 - 75.67 = $355.22

If everyone paid their fair share, each would split the rent/netflix/internet - and everyone would owe $430.89/month. Since you've already paid $75.67 of your share (by paying two bills in full from your own money), you've got $355.22 left to pay.


Stated another way: each person should start off owing $430.89

$430.89
-67.68 (paid to internet)
-7.99 (paid to netflix)
355.22 (left to get paid somehow)


------------------------------------------------------------------------------
Which works out, cause when you look at what's left to get paid:

Owed by Person 1 + Owed by Person 2 + Owed by You = Rent

430.89 + 430.89 + 355.22 = (drum roll please)....... $1217 aka rent

Ta da!




- which I just scrolled back up and saw that MonkeyMama already posted this same calc, so that steals a little of my thunder hah oh well

But the total payable per person is not 1217 its 1290.66 since 405+ 22.56+2.66 = 430.22

so 403.22*3 gives 1290.66 but the rent alone is only 1217.

[jpg7n16]

Why are you backing out their share? You're working too hard

Take whatever you're supposed to pay, and back out any amounts you have paid. Not: back out some other person's portion of the bill you paid. Back out the amount of money that leaves your account.

In your last step, you are double counting your own personal internet and netflix bill.

Each person begins owing the following:
Rent: $405.67
Internet: 22.56
Netflix: 2.66

Total owed by each person: $430.89

Here's what you have paid so far:
Rent: $0
Internet: $67.68
Netflix: $7.99

You have overpaid by $50.45

So you should reduce your RENT by 50.45, not your total owed. Your portion for rent was 405.67, not 430.89.

But that method is way too hard!!! Just do the easier version.

[What you owe for the month] minus [what you have paid for the month] = [what is left to pay for the month]

430.89 - 67.68 - 7.99 = 355.22

You are attempting to do the following:

[Rent and other expenses] - [2/3 portion of other expenses] = [rent] + [1/3 portion of other expenses]
[(1/3)*(1217+67.68+7.99)]-[(2/3)*(67.68+7.99)] = 380.44 (which is wrong because it double counts the internet and netflix expenses)

The correct complicated equation would be:

[(1/3)*(1217)] - [(2/3)*(67.68+7.99)] = 355.22
^^^^^^^^^^^^ notice, no internet/netflix expense included here

But you'll also notice, that it gets to the same answer as the much easier version.



If your share of 3 expenses was $500, and you paid one of those 3 bills for $50, how much do you have left to pay for the month?

500-50 = $450

So if you only had rent and internet, and you paid the internet bill in full: 1217 + 67.68 = 1284.68 total. Divided up to 3 people is $428.23/person.

So if you owe 428.23 for the month and you paid $67.68 so far, you owe:

428.23-67.68 = 360.55


This method is very easy.