Question

Each month, Morse budgets $2,009 for fixed expenses, $ 653 for living expenses,

and $419 for annual expenses. His annual net income is $ 40,510. Describe his
monthly budget by using a positive number to show how much of a surplus there is, a
negative number to show how much of a deficient there is, or zero if it is a balance
budget.

Answer 1

surplus each month of $294.83

Explanation:

Given monthly expenditure:

• Fixed expenses = £2,009
• Living expenses = $653
• Annual expenses = $419

⇒ total monthly expenditure = 2009 + 653 + 419 = $3,081

Given annual income:

• Annual net income = $40,510

⇒ total monthly net income = 40510 ÷ 12 = $3,375.83 (nearest cent)

Comparing the monthly income and expenditure, we can see that he earns more than he spends, so there will be a surplus.

⇒ total monthly net income - total monthly expenditure

= 3375.83 - 3081 = $294.83

So there is a surplus each month of $294.83