Question

monthly budget
income
wages
savings interest
expenses
rent
utilities
food
cell phone
savings
net income
a. it is not possible to save any money this month without having a negative actual net income.
b. $170 can be saved resulting in an actual net income of $0.
c. $200 can be saved resulting in an actual net income of $150.
d. as long as you are saving money, you will not have a negative actual net income.

Explanation:

Step1: Calculate total actual income

Actual income = Income (actual) + Wages (actual) + Savings Interest (actual)
$$900 + 25+0=925$$

Step2: Calculate total actual expenses (excluding savings)

Actual expenses (excluding savings) = Rent (actual) + Utilities (actual) + Food (actual) + Cell Phone (actual)
$$400 + 80+200 + 75=755$$

Step3: Let savings be \(x\). Set up net - income equation

Net income (actual) \(y=925-(755 + x)=170 - x\)

If \(x = 170\), then \(y=170-170 = 0\)

Answer:

B. \(170\) can be saved resulting in an actual net income of \(\$0\)