Question

damian wants to save $7200 to buy a car within the next 2 years. which budget would help damian save enough money to buy a car in a timely manner with minimal effect on his other essential expenses?
monthly budget
income\texpenses-
\trent\tutilities\tfood\tbus pass\tcar savings\tschool savings
budget a\t$1000\t$300\t$75\t$150\t$25\t$350\t$100
budget b\t$1,000\t$300\t$75\t$150\t$25\t$250\t$200
budget c\t$1,000\t$300\t$75\t$75\t$0\t$300\t$250
budget d\t$1,000\t$300\t$75\t$150\t$25\t$100\t$350
a. budget a
b. budget b
c. budget c
d. budget d

Explanation:

Step1: Calculate required monthly savings

Total target: $\$7200$, time: 24 months.
$\text{Monthly savings needed} = \frac{7200}{24} = \$300$

Step2: Calculate total monthly expenses for each budget

Budget A:

Sum all expenses: $300 + 75 + 150 + 25 + 350 + 100 = \$1000$

Budget B:

Sum all expenses: $300 + 75 + 150 + 25 + 250 + 200 = \$1000$

Budget C:

Sum all expenses: $300 + 75 + 75 + 0 + 300 + 250 = \$1000$

Budget D:

Sum all expenses: $300 + 75 + 150 + 25 + 100 + 350 = \$1000$

Step3: Check car savings per budget

• Budget A: $\$350$
• Budget B: $\$250$
• Budget C: $\$300$
• Budget D: $\$100$

Step4: Match to required savings

We need $\$300$/month, and check essential expenses:

• Budget A: Car savings exceed target, but food is full $\$150$ (essential), bus pass kept.
• Budget C: Car savings meet target, but food is cut to $\$75$ (big impact on essential expense).
• Budget B/D: Do not meet monthly savings target.

Answer:

a. Budget A