Question

1. franklin earns $2456.85 each month. he expects the following expenses this month: expenses mortgage payment $1250.46 groceries $250.00 insurance $135.76 entertainment $50.00 utilities/phone $245.00 transportation $250.00 miscellaneous $100.00 if he saves the rest, how much can he save in a year? what percentage of his income does this represent?

Explanation:

Step1: Calculate total monthly expenses

$1250.46 + 250.00+135.76 + 50.00+245.00+250.00 + 100.00=2281.22$

Step2: Calculate monthly savings

$2456.85−2281.22 = 175.63$

Step3: Calculate annual savings

$175.63\times12=2107.56$

Step4: Calculate percentage of income saved monthly

$\frac{175.63}{2456.85}\times100\%\approx7.15\%$

Answer:

He can save $2107.56$ in a year. This represents approximately $7.15\%$ of his income.