Question

PLEASEEEEEE HELPPPPP

Each month, Chelsea budgets $1560 for fixed expenses, $920 for living expenses, and $60 for annual expenses. Her annual net income is $30,480. Which sentence best describes her monthly budget?



A) It shows a surplus of $60.


B) It shows a surplus of $2540.


C) It shows a deficit of $2540.


D) It is balanced.

Answer 1

Answer: D) It is balanced.

Explanation:

Since, Annual net income = $ 30,480,

⇒ His monthly net income = 30480/12 = 2540,

Every month, Chelsea budgets $1560 for fixed expenses, $920 for living expenses, and $60 for annual expenses.

Thus, his total expenditures for a month = 1560 + 920 + 60

= $ 2540,

Since, Total income of a month = total expenditure for a month

⇒ His monthly budget is balanced.

⇒ Option D is correct.