Question

Each month, Jackie budgets $1640 for fixed expenses, $1320 for living expenses, and $260 for annual expenses. Her annual net income is $38,640. Which statement best describes her monthly budget? It shows a deficit of $260. It shows a surplus of $260. It shows a deficit of $210. It is balanced.

Answer 1

The answer is "It is balanced"

Explanation:

I used the other answer on the quiz and got it wrong. The correct answer is highlighted in yellow on the image

Answer 2

Explanation:

Jackie's annual net income is $38,640. This is the income after all other annual expenses has been deducted. This means that his annual expenses of $260 has been deducted already. There are 12 months in a year. This means that her monthly income would be 38640/12 = $3220

Each month, Jackie budgets $1640 for fixed expenses, $1320 for living expenses. Her total expenses for each month will be 1320 + 1640 = 2960. The statement best describes her monthly budget will be her monthly income - her monthly expenses. It becomes 3220 - 2960 = $260

Therefore, It shows a surplus of $260.