Question

The Talbot family's monthly income is $2,800.Talbot Family's Monthly BudgetTransportation Emergency fund(car expense, 3%bus passes)7%Medical(insurance andRentadditional$700expenses)$420ClothingTaxes8%17%Credit cardFoodpayment13%4% Sayings8%If the Talbots did not have to make a credit card payment, and instead put that money into savings, howmuch would they be able to save in total each month?If they did not have to make a credit card payment, the Talbots could save a total of $eachmonth.

Answer 1

As shown in the pie chart, the Talbot family spends 8% of the income in savings, 3% in emergency funds, and 4% of the income in credit card payments. The rest of the income is spent and not saved.

If the Talbot family did not have to make a credit card payment, then that 4% of the income would be saved. How much is this 4% in dollars? It is

`(4)/(100)*2800=112.`

The 4% of the income is $112.

Additionally, 3% of the income is also saved in emergency funds and its amount in dollars is

`(3)/(100)*2800=84`

$84 is saved into emergency funds.

Now we have to add this amount to the savings amount. The savings amount is 8% of the income. In dollars this is

`(8)/(100)*2800=224.`

The savings amount, which is 8% of the income in dollars is $224.

Now adding this savings amount, emergency funds, and the additional $112 saved from the credit card payments gives:

`224+112+84=420\text{.}`

Therefore, if Tablot family did not have to make credit card payments then they would save $420.