Question

To have a balanced budget, you must _____. (1 point)

have your gross pay equal your spending

have your net income equal your spending

have your gross pay equal your spending and savings

have your net income equal your spending and savingS

Answer 1

have your net income equal your spending and savings

Explanation:

A balanced budget is one that has a destination for every dollar of income, and that does not include spending dollars that are not available. The budget is not balanced if it relies on credit as a source of money for spending. In most cases, allocating part of the net income to savings is wise, so having net income equal to spending is not a particularly good idea.

___

Here, "spending and savings" generally does not include taxes and other deductions from gross pay. Hence, we're primarily concerned with net pay.

Answer 2

1. deficit

2. have your net income equal your spending and savings

3. Compute the interest due on the original principal, add that and any late fees to the original bill, then compute the interest based on the new principle.

4. $87.28 (or could be $130.33 depending on which question you get)