Question

With her new company, Annika has a two-year assignment living in a large city. The company will reimburse most of her expenses. Annika is using the Quantitative Reasoning Process to build a budget. Calculate Annika's estimated living expenses for the next two years using the following:

Rent: $1,050 per month, Gym membership: $325 per year with a monthly fee of $35, Renters' insurance: $70 every 6 months, Groceries: $300 per month, and Eating out & entertaining: $150 per week.

Assume 52 weeks in 1 year and 12 months in 1 year.

(Round your answer to the nearest whole dollar)

$
Number

Answer 1

To calculate Annika's estimated living expenses for the next two years, we can use the following formula:

Living Expenses = Rent + Gym Membership + Renters' Insurance + Groceries + Eating Out & Entertaining

Rent: $1,050 per month * 12 months/year * 2 years = $25,200
Gym membership: $325 per year / 12 months/year * $35 per month = $325
Renters' insurance: $70 every 6 months * 2 payments/year * 2 years = $560
Groceries: $300 per month * 12 months/year * 2 years = $7,200
Eating out & entertaining: $150 per week * 52 weeks/year * 2 years = $15,600

Adding up all the expenses:

Living Expenses = $25,200 + $325 + $560 + $7,200 + $15,600 = $48,985

Therefore, Annika's estimated living expenses for the next two years is $48,985