Question

Eace month Cameron budgets $1040 fixed expenses $980 for living expenses and $120 for annual expenses his annual net income is $24,132 which statement best describes his monthly budget?

Answer 1

Cameron's total monthly expenses amount to $2030, but his monthly net income is only $2011, meaning his expenses exceed his income by $19. Therefore, Cameron will not be able to save any money based on his current budget and needs to adjust his budget or increase income to meet his saving goals.

Step-by-step explanation:

To determine if Cameron can stick to his desired monthly savings with his current budget, we first need to calculate his total monthly expenses and compare them to his monthly net income. Cameron's budgets $1040 for fixed expenses, $980 for living expenses, and $120 for annual expenses. However, the $120 for annual expenses should be distributed over each month, so we'll divide this by 12 to get the monthly cost for annual expenses.

Fixed expenses: $1040

Living expenses: $980

Monthly portion of annual expenses: $120 / 12 = $10

The total monthly expenses are therefore $1040 (fixed) + $980 (living) + $10 (annual) = $2030. Next, we compare this to his monthly net income. Cameron's annual net income is $24,132, so his monthly net income is $24,132 / 12 = $2011.

Comparing his monthly net income of $2011 to his total expenses of $2030, it's clear that Cameron's expenses slightly exceed his income by $19 each month, meaning he will not be able to save any money based on his current budget and would need to adjust his expenses or increase his income to achieve his saving goals.

Answer 2

Eace month Cameron budgets $1040 fixed expenses $980 for living expenses and $120 for annual expenses his annual net income is $24,132 which statement best describes his monthly budget? His expenses come to $24,360 so it is a deficit budget ie the expenses are slightly more than his income to he will have to go slightly into debt each year.