Question

you have a monthly income of $4,000. you plan to follow the 50/30/20 rule for budgeting.
how much of your monthly income should be going towards needs?
choose 1 answer:
a $800
b $1,200
c $1,600
d $2,000

Explanation:

Step1: Recall 50/30/20 rule for needs

The 50/30/20 rule allocates 50% of income to needs.

Step2: Calculate 50% of $4,000

$\text{Amount for needs} = 0.50 \times 4000$

Answer:

D. $2,000