 Personal finance practice problem using OneNote. Disability insurance payment calculation. Prepare to get financially fit by practice in personal finance. You're not required, but if you have access to OneNote, we'd like to follow along. We're in the icon on the left-hand side, practice problems tab in the 9040 disability insurance payment calculation tab. Also take a look at the immersive reader tool or practice problems oftentimes in the text area too. Same name, same number, but with transcripts. Transcripts that can be translated into multiple languages either listened to or read in them. Information on the left-hand side, we're imagining we have disability insurance and are filing a claim for disability insurance thinking about how much these benefits might be paid out will be. We're gonna imagine that our take-home pay is at 2,500. The disability insurance coverage replaces the percent of wages at 55%, and then there's a waiting period, a waiting period of four weeks before the disability insurance starts kicking in. So the weeks of missed work due to illness, we're gonna say our 14 weeks. So let's use this information to think about a calculation for our disability benefit payments. So we could do this a couple different ways. Well, we will do it a couple different ways. These are great problems to work in Excel, just to build these tables, to visualize these tables, to practice formatting your Excel worksheets. If you wanna follow them in Excel, we do have them in Excel as well. So we got the weeks of missed work at 14. We're gonna say the waiting period is four weeks. So it doesn't kick in until after the four weeks. So that means that obviously from a planning standpoint, we would like to have enough wages basically to cover a four-week period if we have our disability insurance. We would like to have like an emergency fund, hopefully, which can cover us for the four weeks and then the disability insurance is gonna kick in or at least the four weeks for an emergency fund would be good. So in any case, that means we have the weeks after the waiting period at 10, and then we've got the take-home pay per week at the 2,500. So now we've got the 2,500 for 10 weeks. So 10 times 2,500 would be $25,000. And then we've got the percent of coverage at 55%. And that would give us total for those 14 weeks of the 13,750. Now note that if you're working this in Excel, you might wanna set up your table to run different scenarios. And for example, if you had something that your missed work was less than four, say it was three, and you changed this number in your data set to three, then this number would be lower than this number and we wouldn't want this to go below zero. So you could use, say, a logic function, which is good practice in Excel to say if it's above, I wanna subtract out. If it's below, stop at zero. I won't go into the logic function here, but we could do it with an if function. So that's a good practice to do within Excel. You would also like to set it up so that if you changed your numbers on the left-hand side, you could practice setting up the worksheets so that they can then populate and calculate on the right-hand side. Another way you might look at it, you might say, okay, let's break it out on a week-by-week method. So you might say that percent of take-home pay, notice I'm gonna put a colon here to have a sub-calculation. I'm putting an indentation on the enter column. The take-home pay per week is 2,500. The percentage per week is gonna be the 55%. That would give us on the weekly pay 1,375. And then we've got the waiting period that we have to deal with as well as how many weeks we're gonna be out for. So the weeks after the waiting period, notice another sub-category with the colon. And then we have the indentation, weeks of missed work, 14. And then we have the waiting period at four. So that means 14 minus four, that gives us the 10 on the outer column. So notice the formatting of this is a little bit longer of a calculation, but it gives us that 1,375 on the week-by-week kind of calculation there, which could be advantages. We're gonna now multiply out the outer column and that will give us the same 13,750 as we see up top here. Once again, we could change this cell right here to say that if we had the missed work up top instead of 14, like three or two or something like that below the four, we want this number to basically be at zero. It's not gonna basically go negative. And so those are good practice, great practice to do in Excel and work through your tables and practice your formatting.