Question

Brianna is creating a budget. The expenses she pays monthly are $500 for rent, $120 for gas for her car, $100 for health insurance, $75 for auto insurance, $25 for renters’ insurance, $110 for her cell phone, $170 for utilities, about $320 for groceries, and about $250 for entertainment. In addition, over the entire year she spends $12,000 for college expenses, about $800 on gifts for family and friends, about $1800 for vacations at spring and winter break, about $800 on clothes, and $500 in gifts to charity. Her income consists of a monthly, after-tax paycheck of about $2600 and a $3000 scholarship that she received at the beginning of the school year.

a) What is the total of Brianna's monthly expenses? $
b) What is the total of Brianna's monthly income? $
c) What is her total monthly cash flow?

Answer 1

Brianna's total monthly expenses are $1670, her total monthly income is $2850, and her total monthly cash flow is $1180.

Step-by-step explanation:

To calculate Brianna's total monthly expenses, we add up all her monthly costs:

• Rent: $500
• Gas for car: $120
• Health insurance: $100
• Auto insurance: $75
• Renters’ insurance: $25
• Cell phone: $110
• Utilities: $170
• Groceries: $320
• Entertainment: $250

Total monthly expenses: $500 + $120 + $100 + $75 + $25 + $110 + $170 + $320 + $250 = $1670.

Brianna's total monthly income includes her paycheck and a prorated portion of her annual scholarship:

• Monthly paycheck: $2600
• Annual scholarship divided by 12 months: $3000 / 12 = $250

Total monthly income: $2600 + $250 = $2850.

Her total monthly cash flow, or net income, is calculated by subtracting her expenses from her income:

Total monthly cash flow: $2850 (income) - $1670 (expenses) = $1180.