Final answer:
Jorge can afford to spend up to $236 per month on a car payment after deducting his monthly expenses for gas, insurance, and maintenance from his excess monthly cash flow of $400.
Step-by-step explanation:
To assess how much Jorge can comfortably allocate to a monthly car payment, we consider his excess monthly cash flow of $400 and deduct his other anticipated car-related expenses. These expenses include $42 for gas, $94 for insurance, and $28 for maintenance and repairs. Subtracting the sum of these costs from Jorge's excess cash flow allows us to determine the maximum amount he can afford for a monthly car payment.
The calculation is straightforward: $400 (excess monthly cash flow) - ($42 + $94 + $28) = $400 - $164 = $236. Consequently, Jorge has a monthly budget of $236 available for a car payment.
This approach to budgeting ensures that Jorge allocates his financial resources wisely, accounting for not only the car payment but also associated costs like gas, insurance, and maintenance. By having a surplus of $400 in his monthly cash flow, Jorge has some financial flexibility. Deducting the expected car-related expenses provides a clear picture of the remaining funds available for a car payment, helping him make an informed decision that aligns with his overall financial well-being.