Question

A 2-column table has 9 rows. The first column is labeled Monthly expenses with entries rent, utilities phone internet, groceries, entertainment, renters insurance, savings, auto insurance/gas, discretionary spending, total expenditures. The second column is labeled amount budgeted with entries 600, 230, 350, 100, 20, 100, 225, 225, 1,850 dollars. You will need to revise your budget to account for a car payment. Which expense category would be the most difficult to change or reduce? entertainment rent savings groceries

Answer 1

$200

Explanation:

Based on your current level of saving, you need to increase your monthly net saving by $200 to meet your target.

Amount that you need to save next year.

You have already saved $900 and you want to get to $4,500. The amount left is:

= 4,500 - 900

= $3,600

Monthly savings

To get to $3,600, you need to save:

= 3,600 / 12 months

= $300

What should you increase your net saving by?

You currently save $100 so you need to increase by:

= 300 - 100

= $200

In conclusion, you need to increase savings by $200.