Question

Lucille Richards earns $1,250.00 semimonthly and has the

following expenses-monthly living expenses: $837.50; fixed monthly expenses: $925.00;
annual expenses: $4,200.00. How much can she afford to spend each month on
entertainment?
A. $0.00
B. $387.50
C. $595.83
D. $1,187.50

Answer 1

Lucille Richards can afford to spend $387.50 each month on entertainment after accounting for her earnings and subtracting her monthly and annual expenses.

Step-by-step explanation:

The question at hand requires a calculation of how much Lucille Richards can afford to spend each month on entertainment after accounting for her earnings and expenses. Lucille's semimonthly earnings are $1,250.00, so her monthly earnings are $1,250.00 × 2 = $2,500.00. Her monthly living expenses are $837.50, her fixed monthly expenses are $925.00, and her annual expenses are $4,200.00. To find out her monthly portion of annual expenses, we divide $4,200.00 by 12 months, resulting in $350.00 per month. Summing up all her expenses, we have $837.50 + $925.00 + $350.00 = $2,112.50.

By subtracting her total monthly expenses from her total monthly income, $2,500.00 - $2,112.50, we find that Lucille has $387.50 available for entertainment each month. Therefore, the correct answer is Option B, $387.50.