Question

Sofia still lives at home, but helps with the rent paying $200 per month. She has a job that pays about $700 per month after taxes. She has to pay for her own personal items such as clothing and toiletries spending about $120 per month. Going out with friends is important to her, but she also wants to save money to buy her own car. Select the budget that would best help meet her goals.

Monthly Budget

Budget A

Budget B

Budget C

Budget D

Income

$700

$700

$700

$700

Expenses -

Rent

Personal Items

Entertainment

Savings


$200

$120

$100

$250


$200

$120

$300

$50


$200

$120

$200

$150


$200

$120

$325

$25

Answer 1

budget A

Explanation:

Answer 2

Budget A

Explanation:

Total monthly budget is;

T = Rent cost + Personal Items cost + Entertainment cost +Savings cost

For budget A;

T_A = $200 + $120 + $100 + $250

T_A = $670

For budget B:

T_B = $200 + $120 + $300 + $50 = $670

Foe budget C;

T_C = $200 + $120 + $200 + $150

T_C = $670

For budget D;

T_D = $200 + $120 + $325 + $25 = $670

We can see the total budget for all is $670.

Her rent and personal expenses have fixed amounts. Thus, the only ones that can vary are Entertainment cost and Savings cost.

Now, in all the budgets, budget A has the highest savings which is $250.

Thus, we can say it's the best budget to help her meet her goals as it still provides $100 for even entertainment which she loves with her friends.