Final answer:
Mary Ann's after-tax monthly income is $2,589.10, and her total monthly expenses are $2,145. After expenses, she has $444.10 left, which allows her to save more than 10% of her income, equating to $258.91.
Step-by-step explanation:
Budget for Mary Ann
Mary Ann's monthly after-tax income is $2,589.10. She wishes to save 10% of her income. To determine if she can save this amount, we need to summarize her monthly expenses and subtract this from her income.
Monthly Expenses
- Rent: $790
- Cell Phone: $75
- Utilities: $45
- Cable TV and Internet: $65
- Groceries: $450
- Entertainment: $250
- Car Payment: $350
- Gasoline: $120
Total Monthly Expenses
The total monthly expenses equal $2,145. When we subtract this from her after-tax income, we get:
$2,589.10 - $2,145 = $444.10
Can Mary Ann Save 10% of Her Income?
Mary Ann wants to save $258.91 each month (which is 10% of her income). As she has $444.10 remaining after expenses, she can successfully save this amount.
The budget table would confirm that Mary Ann can save the desired 10% of her monthly after-tax income.