Question

Category Value ($)

Housing 1,100
Food 500
Clothing/Entertainment 100
Transportation 100
College Savings 150
Utilities 100
Emergency Savings 50
Retirement Savings 150

Given the monthly budget above, what is the minimum household income needed for this budget?
Question 1 options:


a. $2,500


b. $2,000


c. $2,250


d. $3,000

Answer 1

Option c. $2,250

Explanation:

we know that

The minimum household income needed for the given budget, must be equal at least to the sum of all categories values of the monthly budget

so

Find the sum of all categories values

`\$1,100+\$500+\$100+\$100+\$150+\$100+\$50+\$150=\$2,250`

therefore

The minimum household income needed for this budget is $2,250