Question

Use the table to answer the question.

Hannah Garcia's monthly take-home pay is $2,255. Examine her monthly budget, and determine if she is in credit overload. Show your work or explain how you got your answer.

Description Amount
rent $975
utilities $250
car payment $275
credit card #1 $76
credit card #2 $114
savings $200
miscellaneous $350

Answer 1

No, she is not in credit overload.

Explanation:

Hannah Garcia's monthly take-home pay = $2,255.

Her total monthly budget is :

Rent = $975

Utilities = $250

Car payment = $275

Credit card #1= $76

Credit card #2= $114

Savings = $200

Miscellaneous = $350

Now we will calculate the total of her monthly expenditure :

975 + 250 +275 + 76 + 114 + 200 + 350 = $2240

As this is given in the question that Hannah's monthly salary is $2,255 and her spending is $2,240 that is not exceeding from her salary. So she is not in credit overload.