Question

How much can Jorge afford to spend on a monthly car payment if his excess monthly cash flow is $380, and he expects the following monthly expenses: $42 gas, $100 insurance, and $24 for maintenance and repairs

Answer 1

$214

Step-by-step explanation:

If we can assume that Jorge's monthly expenses once he buys the car will only increase by = gas ($42) + insurance ($100) + (maintenance and repairs ($24) = $166 in total,

Then he will have $214 to cover his monthly car payment: excess monthly cash flow - total additional expenses = 380 - $166 = $214