scotts expenses every month: rent 200 car insurance - car/gas/transportation 20 health insurance 50…

scotts expenses every month: rent 200 car insurance - car/gas/transportation 20 health insurance 50 utilities 45 phone bill 15 food 300 send money home - fun 135 total: 765 net money each month (money spent - money earned): - = 7. scott recently started a new job. he has no savings. using scotts pay stub and his budget, how much money does scott save each month? 8. scott is thinking about moving to a new apartment. what is the largest rent scott can pay? 9. scott wants to send money home to his family in canada. how much money can he send every month? 10. scott does not have a car. if he buys a new car, he does not need to spend $20 on the bus every month. what do you recommend scott do? should scott buy a new car, or continue to use the bus? why?

scotts expenses every month: rent 200 car insurance - car/gas/transportation 20 health insurance 50 utilities 45 phone bill 15 food 300 send money home - fun 135 total: 765 net money each month (money spent - money earned): - = 7. scott recently started a new job. he has no savings. using scotts pay stub and his budget, how much money does scott save each month? 8. scott is thinking about moving to a new apartment. what is the largest rent scott can pay? 9. scott wants to send money home to his family in canada. how much money can he send every month? 10. scott does not have a car. if he buys a new car, he does not need to spend $20 on the bus every month. what do you recommend scott do? should scott buy a new car, or continue to use the bus? why?

Answer

Explanation:

Step1: Determine savings

Since no information about money earned is given and we assume he spends all he earns as he has no savings, savings = 0. 0

Step2: Find largest rent

No information about total available money other than the given expenses. Assuming he can't go into debt, and if we consider re - allocating from 'fun' money, the most he can add to rent is $135. So the largest rent he can pay is $200 + 135=335$. 335

Step3: Calculate money to send home

No extra money available as he has no savings and no surplus income shown, so money to send home = 0. 0

Step4: Analyze car - bus decision

Buying a car has upfront costs (purchase price, insurance, maintenance etc.) and ongoing costs. Just saving $20 on bus per month is not enough to offset these large costs. So he should continue using the bus. Continue using the bus because upfront and ongoing car - related costs will be much higher than the $20 monthly bus savings.

Answer:

  1. 0
  2. 335
  3. 0
  4. Continue using the bus because upfront and ongoing car - related costs will be much higher than the $20 monthly bus savings.