Question

the expenses and income of an individual are given in table form. find the net monthly cash - flow (it could be positive or negative). assume salaries and wages are after taxes, that 1 year = 12 months. round your answer to the nearest dollar.

income
expenses
salary: $30,000/year
house payments: $500/month
jewelry sales: $250/month
groceries: $100/week
household expenses: $320/month
car insurance: $400 semi - annually
donations: $420/year
miscellaneous: $700/month

a. - $502
b. - $272
c. - $226
d. $28

Explanation:

Step1: Calculate total monthly income

Monthly salary: $\frac{30000}{12} = 2500$ dollars. Jewelry sales is $250$ dollars per - month. Total monthly income $I=2500 + 250=2750$ dollars.

Step2: Calculate total monthly expenses

House payments: $500$ dollars per month. Groceries: $100$ dollars per week, so monthly is $100\times4 = 400$ dollars. Household expenses: $320$ dollars per month. Car - insurance is $400$ semi - annually, so monthly is $\frac{400}{6}\approx66.67$ dollars. Donations is $\frac{420}{12}=35$ dollars per month. Miscellaneous is $700$ dollars per month. Total monthly expenses $E = 500+400 + 320+66.67+35+700=2021.67$ dollars.

Step3: Calculate net monthly cash - flow

Net monthly cash - flow $=I - E=2750-2021.67 = 728.33\approx728$ dollars.

Answer:

D. $\$728$