Final answer:
Mary Ann's total monthly expenses are $2,145, and with a monthly after-tax income of $2,589.10, she has a remaining balance of $444.10. Therefore, she can save her goal of 10% of her income, which is $258.91.
Step-by-step explanation:
Calculating whether Mary Ann can save 10% of her monthly after-tax income involves creating a budget table and subtracting her monthly expenses from her income. First, let's calculate the total monthly expenses by adding rent, cell phone, utilities, cable TV and internet, groceries, entertainment, car payment, and gasoline:
- Rent: $790
- Cell phone: $75
- Utilities: $45
- Cable TV and Internet: $65
- Groceries: $450
- Entertainment: $250
- Car payment: $350
- Gasoline: $120
The total expenses sum to $2,145.
The desired savings are 10% of her monthly income, which amounts to $258.91 (10% of $2,589.10).
Next, we calculate the remaining amount after expenses:
Mary Ann's monthly income after taxes: $2,589.10
Total expenses: $2,145.00
This results in a remaining balance of $444.10.
Since her desired savings of $258.91 are less than the remaining balance of $444.10, Mary Ann can successfully save 10% of her monthly after-tax income.