Question

value: 1
when setting up a bi - weekly spending plan, all of these are true except?
○ a. a large payment may eat up an entire paycheck leaving you with limited money for 2 weeks
○ b. divide your monthly expenses by 2.167 in order to calculate bi - weekly spending
○ c. calculating your bi - weekly spending can help you plan for saving money
○ d. divide your monthly expenses by 2 in order to calculate bi - weekly spending

Explanation:

• Option a: A large payment can indeed consume a paycheck, leaving limited funds for two weeks. This is a common scenario in budgeting.
• Option b: There are approximately 2.167 bi - weekly periods in a month (52 weeks in a year, so 26 bi - weekly periods, 26/12 ≈ 2.167). Dividing monthly expenses by this number is a valid way to calculate bi - weekly spending.
• Option c: Calculating bi - weekly spending helps in planning savings as it gives a clear picture of available funds after expenses.
• Option d: Dividing monthly expenses by 2 is incorrect. As there are more than 2 bi - weekly periods in a month (approx 2.167), this would under - estimate the bi - weekly amount.

Answer:

d. Divide your monthly expenses by 2 in order to calculate bi - weekly spending