Question

question 3 (10 points)
you shared a 50 - 30 - 20 budget spreadsheet with maria. she has worked several more months and noticed that her average monthly income is now $2,500. she typed in her budgeted expenses in the needs category. she has more than 50% in the needs category ($1,690.00 is 67.6% of her total budget), and she will not be able to change that. she plans to put a full 20% in the savings category. how much will she be able to budget toward wants?
50:30:20 monthly budget year 1
expected monthly income $2,500.00
after deductions
needs
rent or mortgage $775.00
utilities $125.00
car payment $300.00
insurance $60.00
groceries $270.00
gas $45.00
cell phone $45.00
credit card debt repayment $180.00
basic clothing $30.00
medical $30.00
other
total expense $1,690.00
percent of income 67.6%
target expense amount $1,250.00
target percent of income 50%

a) $310.00
b) $750.00
c) $412.00
d) $600.00

Explanation:

Step1: Calculate savings amount

The savings category is 20% of the income. So, the savings amount is $2500\times0.20 = 500$.

Step2: Calculate amount for wants

The needs category is already $1690$ (67.6% of the budget and can't be changed). The total income is $2500$. Let the amount for wants be $x$. We know that income = needs + wants+ savings. So, $x=2500 - 1690-500$.
$x = 310$.

Answer:

A. $310.00$