8.1k views
1 vote
Can anyone explain how to solve this

Mortgage (monthly)
Amount
$985.64

Cell phone (monthly)
$58.30

Groceries (twice a month
$154.00

Clothing (monthly with 25% job-related) $180.00

Water & electric (monthly)
S128.40

Weekly dinner & movie
$55.00

Property taxes (6 months)
$684.80

Car insurance (guarterly)
$330.00

Your realized income is $2.943.20/month. How much are your fixed expenses each month? How much could you save per month if you take 25% of your discretionary monies and put it in a savings account?

User Freshbm
by
8.9k points

1 Answer

5 votes

Answer:

To calculate the fixed expenses each month, we need to add up all the monthly expenses:

Mortgage: $985.64

Cell phone: $58.30

Groceries: $154.00 x 2 = $308.00

Clothing (with 25% job-related): $180.00

Water & electric: $128.40

Weekly dinner & movie: $55.00 x 4 = $220.00

Total monthly fixed expenses: $1,880.34

To calculate how much could be saved per month, we need to first calculate the discretionary income:

Realized income: $2,943.20

Fixed expenses: $1,880.34

Discretionary income: $2,943.20 - $1,880.34 = $1,062.86

25% of discretionary income: 0.25 x $1,062.86 = $265.72

Therefore, the amount that could be saved per month by putting 25% of the discretionary income in a savings account is $265.72.

User Guckmalmensch
by
8.3k points