Question

Gerald has just been hired for a new job and wants to work out his budget for each month. The health insurance plan he selected has an average monthly premium of $210. The average monthly cost of his electric bill is $118 and the phone/internet/cable package he wants costs an average of $66 each month. If his monthly salary is $1600, estimate the amount of money he will have after paying these bills each month.

Answer 1

Gerald's remaining income after subtracting the costs of his health insurance, electric bill, and phone/internet/cable package from his monthly salary of $1600 is approximately $1206. This calculation assists Gerald in planning his budget and understanding how much money he has for other expenses.

Step-by-step explanation:

Gerald has a monthly budget to manage, which includes costs for health insurance, electricity, and a comprehensive phone/internet/cable package. Starting with a monthly salary of $1600, he needs to deduct his monthly bills. These include a health insurance premium of $210, an electric bill of $118, and a phone/internet/cable package costing $66.

To calculate Gerald's remaining income after these expenses, we simply subtract the total cost of these bills from his monthly salary:

1. Health insurance: $210
2. Electric bill: $118
3. Phone/Internet/Cable: $66
4. Total monthly bills: $210 + $118 + $66 = $394
5. Remaining income: $1600 - $394 = $1206

After paying these bills, Gerald will have approximately $1206 left each month to allocate towards other expenses such as rent, food, transportation, savings, and discretionary spending. It's important for Gerald to consider other potential costs as well, as planning and managing a budget effectively can help avoid financial stress and enable future savings.