Question

Maureen has a net spendable income of $2,100 per month. She sets up the following transportation budget for herself. 3. Transportation (15% - 20%) 350 a. Car payments 150 b. Gas/Oil 120 c. Insurance 60 d. License/Registration 2 e. Taxes 5 f. Maintenance/Repair 50 What has Maureen done wrong?

Answer 1

she would need $387 dollars to cover her transportation budget. She will need to increase her transportation budget to cover the minimum recommended amount. hope this helps

Answer 2

Given is : Maureen has a net spendable income of $2,100 per month.

Now, she sets up a 15 to 20% budget for transportation.

This means her should budget lie between

`0.15*1200=180` to
`0.20*1200=240` but she assigned $350 for this category.

Now adding up the sub- categories, we get:

`150+120+60+2+5+50 =387`

So, we can clearly see that the sub-categories cost more than the category itself.

Maureen has budgeted her transportation wrongly. Either she should increase the budget or she should cut out few dollars from the sub categories.