Question

mrs v. watson author | teacher
posted nov 5 2:53pm
bell ringer | 11/5 | wednesday - budgeting & decision-making
show steps for calculation problems

1. jacob earns $1,500 per month. his monthly expenses are:

• rent: $700 food: $250 transportation: $150 phone: $80 entertainment: $100

how much can he save each month?
a) $120 b) $150 c) $200 d) $220
answer:

1. alana wants to add a gym membership for $40/month but also wants to save $200/month. her income is $1,800 and other expenses total $1,620. what should she do?

a) add the gym and save less b) skip the gym or cut other costs c) borrow money for the gym d) none of these
answer:

1. a 50/30/20 budget means:

a) 50% needs, 30% wants, 20% savings
b) 50% savings, 30% debt, 20% fun
c) 30% needs, 50% wants, 20% donations
d) 50% income, 20% taxes, 30% expenses
answer:

Explanation:

Step1: Calculate Jacob's total expenses

Add up all his expenses: \(700 + 250+150 + 80+100\)

$$
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$$

Step2: Calculate Jacob's savings

Subtract total expenses from income. Let \(S\) be savings, \(I = 1500\) (income) and \(E=1280\) (expenses). Then \(S=I - E\), so \(S=1500-1280 = 220\)

Step3: Analyze Alana's situation

Her current available amount for savings and gym: \(1800-1620=180\). If she adds gym (\(40\)), total for gym and savings would be \(40 + 200=240>180\). So she needs to skip the gym or cut costs.

Step4: Recall 50/30/20 budget rule

The 50/30/20 budget rule means 50% for needs, 30% for wants, and 20% for savings.

Answer:

1. d) \(\$220\)
2. b) Skip the gym or cut other costs
3. a) \(50\%\) needs, \(30\%\) wants, \(20\%\) savings