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Is a $250 gift for his friend over or under the 12% spending guideline for gifts

Is a $250 gift for his friend over or under the 12% spending guideline for gifts-example-1
User Bethann
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1 Answer

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Answer:

under

Explanation:

On average, there are 4 1/3 weeks in a month, so Andy's salary is equivalent to ...

(4 1/3 wk/mo)($975/wk) = $4225/mo

The spending guidelines are that no more than 12% should be spent on gifts and entertainment, so Andy's gift budget is ...

12% × $4225/mo = $507/mo

A gift of $250 falls well within Andy's monthly gift budget limit of $507.

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Additional comment

Andy's housing allowance is about 30% of $4225, or $1267.50. His mortgage expense is over his budget amount by $82.50. Even if Andy takes this from his gift budget, he still has a sufficient amount for the birthday gift.

User Janx
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