Problem 7
Answer: $70 per month
This is because he needs $280 in total for holiday shopping (200+80 = 280). Divide this over 4 to get 280/4 = 70.
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Problem 8
- Net Monthly Income = $541.64
- Transportation Insurance = $110
- Gas and Repairs = $65
- Cell Phone = $30
- Saving: Holiday Expense = $135
- e-Reader = $80
- Total Expenses = $420
- Balance Remaining (Discretionary Income) = $121.64
There's not much to explain other than we're just gathering all of the values we found earlier. The total expenses has us summing pretty much everything but the monthly income. Keep in mind that the expenses for next month won't include one time purchases such as the e-Reader.
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Problem 9
This was already asked in problem 6
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Problem 10
Answer: $300 per month
Step-by-step explanation:
He needs 300+600 = 900 dollars per semester. Keep in mind that this is just for books and personal needs, and we're excluding tuition or other costs.
Assume he attends a 4 year university. This means there are 4*2 = 8 semesters. Therefore, he needs 8*900 = 7200 dollars overall. Divide this over 24 months (equivalent to 2 years) and we get 7200/24 = 300
He needs to save $300 per month to put toward college expenses.
If we go back to problem 3, this means his discretionary income of $336.64 will drop to 336.64-300 = 36.64 dollars assuming he puts the 300 in the college account each month. Keep in mind that I'm not accounting for compound interest, CDs, etc to help grow the money already in the account.