Question

In Oscar’s monthly budget, each category is assigned a certain percentage of his monthly income. Oscar’s monthly income is $2,250. Which statement is NOT supported by the information in the table?

a) Oscar's savings amount to $360.
b) The total of Oscar's car payment and car insurance is 24% of his income.
c) The sum of all the percentages in the table is 100%.
d) The budget allocation for utilities is $135.

Answer 1

Without Oscar's budget table, we cannot verify the statements related to his expenses and savings. For Mary Ann, however, her monthly after-tax income allows her to cover her expenses and meet her savings goal of 10%.

Step-by-step explanation:

To answer the student's question, we would need to reference Oscar's budget table; however, such a table is not provided. Therefore, we can't verify the statements related to Oscar's monthly income and budget allocations. For Mary Ann, who has an after-tax monthly income of $2,589.10 and wishes to save 10% of her income, we can construct a budget table based on her expenses and calculate her ability to save.

Mary Ann's monthly savings goal is 10% of $2,589.10, which equals $258.91. Summing up her given expenses: rent ($790), cell phone ($75), utilities ($45), cable TV and internet ($65), groceries ($450), entertainment ($250), car payment ($350), and gasoline ($120), we get a total expense of $2,145. Since her total expenses are less than her income, Mary Ann can meet her savings goal.

Constructing such a budget table is important for personal financial planning, as it can help ensure that expenses do not exceed income and that savings goals are met.